Fri, 04 Apr 2014 09:14:19 +0000
Complete guide – expiry times
Tue, 18 Mar 2014 15:46:35 +0000
Expiry times represent the deadline of a trade or basically, they express the time limits of a trade, this meaning that the prediction of an investor must come true by the time of that predefined limit, in order to achieve its desired outcome. Even if the prediction would come true
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Expiry times represent the deadline of a trade or basically, they express the time limits of a trade, this meaning that the prediction of an investor must come true by the time of that predefined limit, in order to achieve its desired outcome. Even if the prediction would come true after the expiry time, it still wouldn’t count in as a winning trade, because what matters is what happens at the time of expiry.
From the many elements of binary options trading, expiry times are one of the most important. In case you wonder why, well, mainly, because they influence the trade outcome in many ways.
How to choose your expiry time
The suitable expiry time depends on several factors such as the desired payout, the risk of the trade, the chosen asset as well as the expectations of the investor. Basically, there are two choices you can make. You either opt for a pre-set expiry time or for a customizable one. Let’s see what those refer to.
– are already defined by the broker, which means the trader has to analyse how the asset behaves and determine the time that is necessary for it to meet the objective of the trade. Next, choose an expiry time which allows for this to happen. Therefore, experience is needed in order to perform this kind of trades. However, many brokers offer the possibility to adjust the expiry time of an initiated trade by using features such as Early Closure or Roll Over.
– are simple to put in practice, not requiring a high degree of experience. You just have to predict how much time is left until the trade expires. Even though it is a flexible and not so risky option, the customizable expiries do not allow adjustments.
For , choose short expiry times, since these assets are the ones that fluctuate less, therefore imply a lower volatility.
are ideal in case of currencies, because the exchange rates usually go through small changes at a frequent basis.
are preferred for , as plenty of changes and market movements occur within this category of assets.
So, pay attention when choosing an expiry time, as this will count a lot in determining the outcome of your trade.
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