Set the Expiration Time of an Option

Expiry times are the most essential elements in the digital options business. In digital options trading, an expiration time means the time when a digital option will expire.

An expiration time essentially dictates the period, for which clients have to wait in order to know the outcome of the placed bet or wager. Expiration times depend on the type of digital option selected and the option broker. One is able to see the expiration time when placing an option. After the expiry of an option, a trading platform calculates the value of an asset to tell whether there’s a loss or a gain in a position.

It is important to fathom how expiration times work in an effort to become a respectable digital options trader in South Africa. If traders learn, which expiries work well with given assets, then they will be in a better position to invest in the contracts that provide the best winning chances.

Many brokers in digital 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 digital 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 digital 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 digital options trade:

Early closure
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 digital 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.

Roll-overs
At times, digital 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.

Doubles
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 digital options expiry dates, the top 5 digital 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.