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Set the Expiration Time of an Option

Your capital may be at risk. This material is not investment advice.
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Written by trading expert:Professional Day Trader
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Short resume:
  • Author of the book Options Trading for beginners
  • Worked in finance in 12 years
  • Got a MBA in Finance, BA, International Business Administration And Marketing
  • Built a solid record of achievements through constantly developing financial markets
  • Traded on the most frequently utilized stock exchanges: TSE, LSE,NASDAQ, NYSE, Euronex Actively managed a 6-9 million dollar portfolio
  • Developed new and innovative trading systems and implemented them during trading hours
Matthew O'Connor is the author on the bestseller Option Trading for Beginners
Option Trading for Beginners - Written by Matthew O'Connor

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

Read more in this articlel how to set expiration time in IQ Option. 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 binary 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 binary 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.

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Early Closure Binary Options

The term Early Closure Binary Options means just what it actually says. If you have made a trade on the IQ Option platform, then you can choose to close the trade early, which means before the original expiry time was set to.

When to Use an Early Closure?

Let’s say that a trader works with the activated deals that directly depends on the signals from the trading strategies. These are some of the times you can use early close in binary options:

  • A general technical failure
  • If there is an error in prediction
  • When assessment is incorrect
  • Emergency events

The early closure binary options can be used in case of you don’t want to leave the position;

  • Are you profiting on a transaction of the current state, you will with an early closure, bring a smaller profit but the profit is guaranteed.
  • When you are having a negative position, you can lose only 20-20%, instead of the original closure would give a 100% loss.
The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Establishing Expiry Times

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:

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 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.

Roll-overs
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.

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 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.

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
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