Many binary options brokers now provide traders with the ability to sell off open contracts, locking in a profit or reducing a loss by doing so. This feature can be used as a means of scalping, as it will allow you to exit the market with a profit prior to the conclusion of the expiry time. The following strategy can easily be used by beginner level traders, but note that some experience with the analysis process will definitely render it more profitable.

First things first to use this strategy you will need to be trading with a broker who offers the ability to sell. This feature is typically offered along with standard Put/Call trades, and it will not be available on super-short expiry times of one to five minutes. Each broker sets the rules for its use, but it is generally made available on expiry times of one hour or longer. There may also be a time limit for its use. Check with your broker to learn the specific rules surrounding use of this feature.

With this taken care of, the next step will be to select an asset and start the analysis process. Scalping is most effective when a price trend is in place. If the trend is strong, it can be wise to allow the trade to run to completion and collect the entire profit. However, milder trends and short-term increases can easily be taken advantage of by entering the market, allowing the asset price to climb or fall, and then exiting with a profit. Even volatile price movement can be cashed in on, so long as the price moves in your favor and the option is old at that time.

Detailed analysis will reduce risk and increase profits, so do not skip this step. Analysis will also help with deciding when to sell. Any amount of profit will clearly be better than a loss, so do not be afraid to sell as soon as the price moves into a profitable position. Substantial earnings may still be accumulated even when individual earnings are small, so long as your trade volume is high. Binary options trading allows for fast trade execution, which means that one can easily execute dozens of trades in a short period of time.

The per-trade investment amount decision will be entirely up to each trader. Some are content with using small amounts and a higher trade volume to build profits, while others opt for larger amounts and fewer trades. Even when analysis is completed, there are never any guarantees that a price will not move against you. The easiest way to keep risk at a minimum, regardless of the binary options strategy being used, it to keep investment amounts at a reasonable level. Never invest what you cannot stand to lose is always solid advice.

Scalping is considered to be a low risk strategy due to the fact that the odds of the price moving in the predicted direction at some point during the trade are high. The offered payout will be directly connected to the price position at the time of the sale, so expect variances. Should things not go according to plan, sell the option and recoup some of the loss amount. There is no need to accept a 100% loss when the option to sell in exchange for a partial refund is offered by your binary options broker.