An Early Closure is a tool that is only offered by certain binary options brokers, giving their customers a chance to pull out of their trade ahead of the predetermined expiry time.

When trading binary options, people who trade are ordinarily unable to close their position before the expiry time. Some brokers, however, have developed the Early Closure tool, allowing traders to minimize their risk if they feel that their position will inevitably expire out Of The Money.

Whenever one chooses to opt for the Early Closure option, the broker automatically calculates the percentage of losses or profits depending on the amount of time left in the position and the probability of an eventual win or loss.

In the event that the broker calculates that the position is more likely to expire In The Money, the trader will receive a percentage of the predetermined payout based on the amount of time the position was opened.

Every broker has different conditions for when the trader is able to pull out of the position. For a 30-minute option, some brokers will allow you to exit the position three minutes after opening it and seven minutes before its expiry.