Pending option: earn on the future
- VFX Blog
- Strategies
You had an open option but found a good moment to detect above/below the price or in a few hours. If it is not possible to constantly be behind the terminal, you can miss a good profit. There is an exit. In order to set "for the future" with a pending option strategy on Pocket Option broker.
Trading platform
Select a broker in the vfxAlert program, and register by E-mail/password:
Select a demo account to test the Pocket Option strategy. We always do this before placing it on a real account.
What does option pending mean?
To understand how to use pending orders in binary options strategy, let's look at the market order familiar to all traders, which can be traded immediately after registering with the broker.
The main advantage is simplicity; you can quickly enter the market and make a profit. But, this is their weakness - the trader must make decisions “now”, you cannot cancel an open transaction. It is also difficult to trade strategies that use multiple assets: the right trades can be at different times, which increases the risk of incorrect opening. Especially when dealing with different volumes and expiration.
The pending option allows the trader to open a trade exactly where he needs or there are free option trade alerts. After a specified time interval or upon reaching the desired price level.
Opening a pending option does not affect the deposit. While it is not open, we trade with the full amount. But, the main thing is the ability to cancel the option at any time before its opening.
For more about pending option settings, see the video:
Example option pending
Pending options are ideal for breakouts or rebounds of side price channels. For example, a typical situation: the market received news or speculative up impulse - larger players left the market after closing profits to make a new decision.
On the chart, the temporary balance of forces of buyers/sellers can be seen as a sideways movement under the Super Trend line.
In order to enter any direction of the market after the channel is broken, we use the channel strategy option pending: two pending trades 3-5 points above/below the side range.
Now let's see the result:
Sellers have an advantage, the downtrend begins. The LOWER option was opened automatically, and profit was made. We remove the option and continue trading.
Remember about money management, especially on binary options signals free! It is recommended that the total pending amount remains at 10-15% of the current deposit. Especially if there is a “market” and “pending” trade right away.
Summarize…
Pocket option strategies based on pending trades are an excellent tool for an additional profit with a low risk of loss. Most traders do not use it, remaining on standard CALL/PUT (Higher/Lower) with immediate execution. Pending order gives a market advantage to earn where there is no «market crowd» yet.