• Take Profit
• Stop Loss

Hirose UK offers the possibility to close your position before expiry. With this function you can reduce your losses or take the profits before the option expires. Being able to reduce the risk while trading is really important to increase your profits.

When can I CLOSE the position?

You can only close a position long before the time expires.
Take a look at the following chart:

As shown in the above image, you can close a position only when the market price is within the range between " START" and " STOP" ( green arrow).

If the price passes the "STOP " line you will not be able to open or close any position, you now have to wait until the time expires ( red arrow ).

How to close a position before expiry time?

There are two ways to close a position before the time expires:

1. The first one is by clicking on the "CLOSE " button on the box on the bottom of the screen. Click on the button and the position will be automatically closed.

2. The second way is to click on the icon of the open option in the graph. By doing so , a small box will appear where you can see three pieces of information : "Amount ", " Payout amount" and "payout ratio" .

The "Payout amount" indicates the amount you will receive if you decide to close the position at that time.
Click on the " CLOSE" button and the position will be automatically closed.

We will show you why this strategy about closing out a position before the expiry time will help you to increase your profits and reduces the risk.

Take Profits

Stop Loss

STRATEGY 1: Read the direction of Market Trend

Here is a strategy that you can learn easily simply by observing market trends in the outline.
Explanation: Read the direction of market trends minutes in the outline.

- Select LOW if the current price near the Stop line is lower than the price at the start line.
- Select HIGH if the current price near area Stop line is higher than the price at the start line.

Tips:

-This strategy can be applied for 3 minutes, 10 minutes or 30 minutes Options with the condition that the market price movement is not changing to drastically.

- Purchase at a time when the price approaches the Stop line, so that market trend(one direction) from Start to Stop can be seen clearly (does not go up or down or confuse).

- Transactions in the current market moves inactive (not currently open new markets or deserted).

Let´s make an Example:

Example AUD / USD (10 Minutes, Payout 80%)

See the price at the Start (1). In the range of 0.77575

- The price in the upper charts shows the price trending UP when approaching the stop line (2).

- You can open the HIGH position now. Example of the upper image in the range of 0.77700.

- After you purchase HIGH, the price is still likely to go UP.

- End. Currently, the price is above 0.77700 (High position) so this means that you were correct and made a profit (payout ratio of 80%). See the picture below.

STRATEGY 2: Martingale (Part 1)

It is also possible to decide a single direction (HIGH or LOW) and keep purchasing same direction on multiple Option contracts Hint: if you think it will be difficult to make more than 8 consecutive correct trades, it will be also difficult to make 8 incorrect trades.

You will be able to profit even tough you make one winning strategy. However you need to understand that there is potential significant downside for a small profit. Check what total positions you can trade first.

As has been seen in the picture above, during the first 3 trades (LOW ) have lost up to 11 USD.

However , as we said earlier , it is very difficult to fail many times in a row , so we continue aving one LOW position.

Finally, in the trade number 4 , we get hit. In one operation had a losing 11USD , to not only recover the investment , but also have a benefit 5USD .

STRATEGY 2: Martingale (Part 2)

See how trader made a profit (USDJPY 10mins option)

It is also possible to decide a single direction (HIGH or LOW) and keep purchasing same direction on multiple Option contracts Hint. See also attached picture.

Purchase 4 positions but all same direction (HIGH):

1. Purchase $1 HIGH and it starts losing
2. Purchase $3 HIGH and it also starts losing
3. Purchase $7 HIGH and it starts winning
4. Purchase $20 HIGH and it also starts winning

In the end, the trader spent $31 and received back $48.60 which means he earned $17.60!

You will be able to profit with only one winning strategy. This is very recommended!!

STRATEGY 3: Strangle Strategy

Here is a strategy that can be used when you trade both a High and a Low option.
The aim is to get your original trade moving in the correct direction and then to add an opposite trade at a point in the future to try and take advantage of a price reversal.

- If the closing price expires between your High and Low trades then you will make a significant profit.
- If the price expires outside of your purchase prices then your loss will be small.

Step1: You buy $100 HIGH USD/JPY with 30 minutes expiry at 120.062 with a payout of 90%.
Step2: You buy $100 LOW USD/JPY with the same expiry at 120.072 with a payout of 90%.

At expiry there are 3 possible outcomes:

- The closing price is above 120.072 - the first option is profitable and the second option is a loss. Total investment $200 and payout of $90 for first option and -$100 for second option. Outcome: a loss of $10.

- The closing price is between 120.062 and 120.072 ・both options are profitable. The total investment is $200 and the total payout is $90 for both options. Outcome: a profit of $180 (see example).

- The closing price is below 120.062 ・the first option is a loss and the second option is profitable. Total Investment and payout of -$100 for first option and payout of $90 for second option. Outcome: a loss of $10.

This strangle・strategy allows you to take advantage of an initial correct trade that, in this example risks $10 in order to make $180 and gives you a risk reward ratio of 16:1.