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Binary Options Double Up Strategy

Written By

William Berg

Written By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

» William Berg Profile Page

Edited By

Tobias Robinson

Edited By

Tobias Robinson

Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.

» Tobias Robinson Profile Page

Updated

May 31, 2024

Binary options may be a straightforward way to trade, but making returns isn’t easy. Any successful trader knows the key to consistent success lies in strategy, and many consider the “double up” system, which allows you to double your stake and thus potential profits, to be among the best strategies for binary options trading. This tutorial will provide an overview of the binary options double up strategy, from its pros and cons, to a guide on how to use it in practice.

Double Up Strategy: Definition

The binary options double up strategy involves a trader doubling their stake after their trade has started, and usually close to the time of expiry. Since doubling up involves doubling the stake in an existing trade, the payout of a doubled-up binary options contract that ends in the money will also be doubled. If the contract expires out of the money, the losses are doubled.

Doubling up has become increasingly popular with binary options traders as a means of increasing profit intakes. However, this is not a comprehensive strategy to improve your overall hit rate, but a way of maximizing profits on successful trades.

To implement the double up system successfully, it needs to be integrated into a tried and tested binary options strategy.

Example

To understand how the binary options double up strategy works in practice, it helps to look at an example trade:

An investor decides to trade on the currency pair AUD/CAD, and after analyzing charts and conducting an analysis of market movements, they believe that the price of this forex pair is going to increase.

They invest £300 on a standard high/low binary option.

Ten minutes before the trade expires, it is safely in the money, so the trader decides to double up in order to double the profit from the trade. As you can see from the example below, the payout without doubling up would have been £564.

If the prediction is correct, and the trade is in the money at expiry, then the trader will make double what they would have had they not doubled up.

However, if the price movement turns against the trader during the final 10 minutes after doubling up, then losses will also be doubled (£600).

Benefits Of The Binary Options Double Up Strategy

The benefits of using the double up strategy in binary options are easy to understand – if you double up a winning trade, then you will make double the profit. This makes it attractive to traders, hence its popularity in binary options.

Another key benefit is that the strategy is very easy to implement. Several of the top brokers also allow users to execute doubled up trades.

Drawbacks Of The Binary Options Double Up Strategy

The binary options double up strategy is designed to double the position of a trader, but this doesn’t always mean doubled profits. In fact, since binary options are an all-or-nothing trade, the chance of doubling your profit also comes with a chance of doubling your losses. Therefore, if your contract expires and the asset is out of the money then your loss will double.

We recommend against doubling up unless you have a tested, airtight trading strategy. It is also vital to be aware of potential losses, and to ensure you can afford to lose that amount should the asset move in an undesirable direction.

Furthermore, seeing as doubling up often only becomes available in the final phase before a contract expires, traders need to be able to act decisively and with confidence at that moment, so experience is recommended.

How To Use The Double Up Strategy In Binary Options Trades

The double up strategy is implemented part of the way through an existing trade, and allows the trader to double their stake and thus their potential profits when they are very confident they have made the right call. To use the strategy properly, your trade should be in the money when you double up.

Begin by selecting the asset you would like to open a contract on and choose a contract expiry time. The binary options contract length is particularly important in this strategy because doubling up takes place shortly before the contract is set to expire, and not when the contract is opened.

At the same time, trades are not doubled up at the last second before the contract expires; you will have a specific window during which you can choose to double your stake, and although it might be very close to when the trade expires, a lot can change in this time.

Doubling up on binary options trades is not a system that increases your win rate on trades, but a way to maximize gains from successful trades, so it should never be done without a solid trading strategy in place. Traders should also have a solid understanding of market volatility and know how to analyze trading charts effectively. This will inform you about the likelihood of your trade being in the money at the time of execution.

However, with binary options trades, the market fluctuates frequently, which is what makes them high risk – therefore even thorough graph analysis is sometimes not enough to accurately predict price movements.

When Not To Double Up

The binary options double up method can help traders to make more money from trades, but there are times when it should be avoided:

• If you do not know how to implement it properly. Educating yourself on any trading strategy is essential before you put it into practice, so if you aren’t completely comfortable with the strategy, test it in a binary options demo account first.
• If you know how to trade a particular asset, but you aren’t experienced with how its price can fluctuate, for example, volatile cryptocurrencies.
• If you aren’t experienced or familiar with the particular asset that you are trading, such as gold or silver.

If you are in any of these situations, it’s better to execute your binary options in a safer way without doubling up, so that you don’t risk losing twice the amount of capital.

Getting Started With The Binary Options Double Up Strategy

In binary options, it is more common for traders to lose money than earn it, so it’s essential that you take all necessary precautions to make your trade a successful one. Here are some tips for getting started using the double up strategy in binary options trading:

Choose A Broker

To double up successfully you should first find reliable and trustworthy binary options brokers.

Check the platform offers doubling up and look for high-security features, user-friendly platforms, plus any welcome deals and promotions.

Educate Yourself

This trading strategy cannot be used effectively without a decent understanding of how to analyze charts and graphs and research the respective market. You can turn to educational resources such as videos, podcasts, strategy books, pdf downloads, and articles online. Some of the top brokers also provide free educational resources for beginners.

Avoid Unnecessary Risk

You can reduce the risks of this technique by choosing to trade an asset that you are familiar with, whether that’s US technology stocks or major currency pairs. Don’t risk funds on an asset you have zero knowledge of.

Practice First

Open a binary options demo account. This will enable you to practice your strategy and trades without risking any real money. You can then replicate the double up system in a live account setting when you feel ready.

Final Word On Binary Options Double Up Strategy

The binary options double up strategy can allow you to quickly double your profit. However, traders should not attempt to use this feature without being aware of its potential pitfalls – wherever there is a chance to increase profits, there is also the possibility that your losses will increase too. Traders should ensure that they have studied charts extensively and are confident in their bet before placing a double up on a binary options trade.

FAQs

What Is The Double Up Strategy In Binary Options?

The double up strategy is a feature that can be used to double your trade during the last moments before the binary option expires. This means that if your trade expires and is in the money, you will make double the profits. However, losses are also doubled if the trade moves in the wrong direction.

Is The Double Up Strategy Good For Binary Options?

The double up strategy can be used in different kinds of trading, and while it can make traders a lot of money when implemented in binary options, it can also result in larger losses than other kinds of trading. This is because binary options are an all-or-nothing trade; if your prediction is wrong, your entire stake is lost.

Can I Use The Double Up Strategy As A Binary Options Beginner?

The double up strategy is one of the easiest features to apply to binary options trading, so traders of all levels can use it. However, unless you know how to do market research, analyze charts, and have an in-depth knowledge of the price movements of the asset you are trading, the method can be very risky.

Is The Double Up Strategy Dangerous For Binary Options?

Binary options pose a high risk to traders, and doubling up puts double your money at risk. To avoid losing more capital, traders should be sure they have in-depth market knowledge of the assets they are trading. It could also be worth testing your binary options double up strategy on a demo account first.

Do All Binary Options Brokers Offer Doubling Up?

The binary options double up strategy is becoming more widely used, but not all brokers offer it. Therefore part of the process of using this technique is finding a reliable broker that offers it alongside everything else you need. We have compiled a list of the best binary options brokers.