Rollover Trading is a good feature that lets you roll your expiration time over the next accessible expiration time, when you think that your option will expire 'Out of the Money'. With the extra time, you can turn a losing trade into a winning one. Rollover feature is just available 10 minutes prior to your selected expiration time and it can be used just once for each trade. Rollover is not accessible to apply on the last expiration time of the day. The use of the Rollover feature will comprise a commission on your trading balance of up to 10% to 35% of the original amount of your investment.
Rollover is a perfect feature that lets a trader to turn loss into profits, in a very easy way. The following are main benefits of the Rollover feature -
- Push the trading option’s expiration time into the future
- Rollover feature is accessible up to 10 minutes prior to the expiration
- Functions as a great stop loss strategy
- Get significant high profits when the option expires in the money for extra earnings
- Above all valuable tool for beginner traders in restrictive losses.
This type of trading is perfect for traders who are in a situation where a perfectly well predicted market movement suddenly makes a shift leaving the trader in panic regarding the expiry time. Traders can Rollover to any of the future expirations of the asset by raising the existing investment by a small-scale proportion. With the Rollover options, traders are proficient to raise the probability of being in the money substantially. This option is very easy to use and returns every trader an additional chance of profitable hit.
A few basic rules about using Rollover trading -
- Only Standard Call/Put Options
- An extra 30% will be summed to the original investment amount
- The trade should be an Open Position
- Open Position should be Out of the Money
- Cannot be applied on ending of the day trades
- Rollover trade will automatically adjust itself for the next obtainable expiration time
- Not allowed on Long Term trades
The future is very difficult to forecast and if you misjudge your trading calculations from which you make your decisions, then you could end up losing more than you expect. This goes on generally when your calculations turn out of the money according to your preliminary calculation and then the most probable outcome is a loss of your investment and the premium charged.