iOption provides our clients with many advantages, including Risk Management. These tools will help you reduce your losses or help turn a losing trade into a winner.
At present we have 4 risk aversion techniques available to you.
binary options trading, there are two possible outcomes if your asset
is in-the-money or out-of-the-money at expiry time. Finishing
in-the-money is great, and every option trader does so at least some of
the time. But, what happens if you finish out-of-the-money - do you lose
your entire investment?
Not always. iOption™ offer protection rates
on every trade free of charge. These are special rates that help cut
your losses and return a certain percentage of your investment to you
should your trade finish out of the money. This effectively reduces the
cost of your trade should it finish out-of-the-money.
How much can you expect to receive as a protection? The amount varies between by trade and risk of trade.
general, iOption™ offer rates anywhere from 5% to 15% of your
investment, with most offering 10% protection for your trade. That means
you place a trade with $100 you will receive $10 for every trade that is
out of the money.
Protection rates for each trade are listed with
the information on each trade, when you select your trade the platform
will also provide you the Protection rate. This is a benefit for iOption™ clients and is free of charge.
Buy Me Out
iOption™ is introducing several new features to our Risk Management Portfolio. One new feature is the “Buy Me Out” option, which allows the traders to sell their option at any point, for a cost. This feature not only adds a dynamic edge to the trading platform, but helps the investor to limit or reduce his loss or risk. iOption™ is the first trading platform to offer this to our clients. It is simple and easy to use, when your trade is going against you, simply click on the Buy Me Out button and the system will offer you a price to close your trade at that time, reducing your loss.
is a powerful stop loss strategy that allows you to minimize losses and
postpone the expiry of your option. When the market disagrees with you,
that is, when it looks as though your prediction is not going to go the
right way by the upcoming expiry date, activate Rollover with the click
of a button. This gives you another opportunity to close in the money.
your trade is not going your way in the time expected, you can roll
your trade over to the next expiry time, by simply clicking on the
rollover button. The cost for a rollover is small compared to the profits you realize.
The Roll Over feature is
essentially a way to buy time on a trade that is not going as well as
you'd hoped so that iOption™ traders can have maximum flexibility. In
effect, if you can see that your trade will not be successful, Roll Over
enables you to extend the expiry time of your asset and give it more of
a chance to expire ‘in the money’.
Here's how it works:
If a trader sees his position is losing, we offer him an option to "roll over", which means to postpone the closing time of the option, hoping that in this additional time the tide will turn in his favor. Traders can roll over to any of the future expiries of the asset (with the exception of the latest expiry) by increasing their existing investment by 30%
Please note: Only one roll over is allowed per open position, and the feature only works when you are out of the money. In addition, the trader cannot use the feature to close the option, or switch from Put to Call (or vice versa).
Rollover is an ideal feature that allows you to turn loss into gains.