Many brokers in binary options normally offer expiry times that have been calculated in the past. Nevertheless, there are a number of brokers in South Africa that allow traders the freedom to choose expiry times that best suit their styles of trading.
Types of Expiration Times
There are mainly three types of expiration times:
1. Long expiration times-take 2hours -2days
2. Medium expiration times those that take 5minutes to 2 hours before expiry
3. Short expiration times take only a few minutes
Setting the Expiry Time
A trader is expected to foretell the direction of an asset’s price and be able to set an expiration time. Take, for instance, if a trader predicts an increase in an asset’s price, then he would buy call option. Similarly, should he see a likely decline, he should buy a put option.
Expiration times are essential in binary options trade execution. South African traders are urged to note that a large expiration time translates to higher chances of rapid change with respect to the market changes. This, however, does not necessarily mean that short expiration times always end up in profit.
As revealed in the top 5 binary options beginner tips, brokers can set various expiration times for the different assets. Many brokers normally place their expiration times on an hourly, daily or weekly basis.
Other expiry times available in binary options trade:
A number of brokers allow for the closure of trade earlier than the time set initially. Many traders provide this option when the trade looks positive on their side. Top 5 binary options beginner tips advice the trader to make such a choice of early closure in the event that they are unsure whether the trade will remain profitable.
At times, binary options brokers will allow traders to prolong the expiration time of an option. Traders in South Africa can do this upon an observation that the price of the asset in question is propelling in the right direction, even though not rapidly. Extensions in time provide better chances for a win.
Confident South African traders can find brokers that allow them to double their bets. If availed, this option doubles up one’s investment without altering the set expiration times.
In regard to binary options expiry dates, the top 5 binary options beginner tips require traders to do business with brokers who have adjustable expiration times. Any serious broker in South Africa will offer this flexibility.