Early Closure – How does it work?
Early closure makes it possible for traders to close positions before the option’s expiry time, in return for a reduced payout percentage. This makes it possible to close a position early, which is In-The-Money, but from which you are not sure that it will close In-The-Money. The percentage that will be paid out depends on the amount, our liquidity provider is willing to pay for the position at that moment.
Obviously, you can also use the early closure when the position is going in a negative direction for you. You can close the position early by using the early closure, which will minimize your loss, by closing the position before the expiration date.
At this moment, the function is available for all currency pairs, with the exception of the Yen (JPY) related currency pairs.
365trading receives its quotes from its liquidity provider, which determines the expiry prices.
How do I use the early closure?
Early closure is easy to use. Below the graphs on the trading page, you can find your open positions. The last column shows the early closure option with the early close price indicated for every position. The early close is only available for orders of 10 minutes and longer. The position can be closed 3 minutesafter opening the position, and up to 3 minutes before the original closing time of the position.
(Pay attention: If the column shows stripes instead of the price when a price should be shown, click CTRL F5)
To make us of the early closure, click on the price of “Early closure”. A pop-up appears where you can confirm your choice to close the position early.
The following conditions is used by 365trading to calculate the value of the position when closed early.
- Market price -The last price known from our feed provider, based on the bid/ask of the last price.
- Time to Expiration – The expiry time of 365trading before the position will close.
- In-The-Money – the current price would be a positive order when the position would close at this moment.
- OUT -The-Money – the current price would be a negative order when the position would close at this moment.
365trading reserves the right to deactivate the early closure at all times.