How Postponing Binary Option Expiry Times Can Work in Your Favour

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
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  • Binomo
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    Good choice for experienced traders!

How Postponing Binary Option Expiry Times Can Work in Your Favour

How Postponing Binary Option Expiry Times Can Work in Your Favour

In the last lesson, we talked about how a new feature known as variable options could help traders to lock-in profits or cut losses. In today’s lesson, we shall talk about another feature that can work in a trader’s favour, which is the use of a feature we shall call the binary options roll forward feature.

So what exactly is the binary options roll forward feature?

This is a feature that allows the trader to postpone the expiry dates of the binary options contracts he has purchased. This is a trade preservation feature which attempts not to lock-in profits or control losses, but to give the trade more room to breathe in order to allow a trade otherwise destined for loss to recover.

Let us illustrate this with the same example that we used in Lesson 7. The trader placed a Rise/Fall trade with a bullish sentiment on the EURUSD, but the trade takes a wrong turn on Monday after a resuce mission by the Eurozone finance ministers over the weekend. Worse still, the expiry is set to Monday market close. Now if this trade is already in a loss position, there is no profit to rescue. Rather, the trader can decide to give the trade room to recover by extending the expiry date from Monday market close to a comfortable future date when he feels the bad news from the Eurozone would take hold of the market once more.

For this feature to work out well in your favour, you need to study the market and do some analysis to see if the trade truly has any chance to recover. The truth is that it actually works. For instance, I have just come out of 2 trades in the forex market; one for the EURAUD and the other for the AUDUSD. I was bullish on the AUD, but one of the trades was negative to -75 pips at a point, while the other was -30 pips at a point. Some traders would panic on seeing the red colour of negative pips everywhere, but knowing fully well that the AUD was soon to be on a bullish roll as a result of some positive market data, the trades were allowed to run and they recovered to 73 pips and breakeven respectively.

When you need some time to let your well analyzed but probably ill-timed trades to recover, the roll forward feature is what you need.

Using the Roll Forward feature will cost the trader some money, just as we have in the variable option feature. But this is a small price to pay to have your trade rescued from ruin.

Once again, it is not recommended to use the Roll Forward at the slightest opportunity; abusing this feature could get you penalized by your broker. It is very important that trades are analyzed carefully and expiry times planned properly so that you will not have recourse to using the Roll Forward tool every single time your trade runs into trouble. Do not succumb to the tendency to get careless with your trade planning just because you have a Roll Forward feature. It is only available on few broker platforms anyway, so many traders will not have the opportunity to use it. But if you are lucky enough to have an account with a broker that offers it, then use it carefully.

How Postponing Binary Option Expiry Times Can Work in Your Favour

How Postponing Binary Option Expiry Times Can Work in Your Favour. We shall talk about another feature that can work in a trader’s favour, which is the use of a feature we shall call the binary options roll forward feature.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

So what exactly is the binary options roll forward feature? How Postponing Binary Option Expiry Times Can Work in Your Favour

This is a feature that allows the trader to postpone the expiry dates of the binary options contracts he has purchased. This is a trade preservation feature which attempts not to lock-in profits or control losses, but to give the trade more room to breathe in order to allow a trade otherwise destined for loss to recover.

Let us illustrate this with this example: The trader placed a Rise/Fall trade with a bullish sentiment on the EURUSD, but the trade takes a wrong turn on Monday after a resuce mission by the Eurozone finance ministers over the weekend. Worse still, the expiry is set to Monday market close. Now if this trade is already in a loss position, there is no profit to rescue. Rather, the trader can decide to give the trade room to recover by extending the expiry date from Monday market close to a comfortable future date when he feels the bad news from the Eurozone would take hold of the market once more.

For this feature to work out well in your favour, you need to study the market and do some analysis to see if the trade truly has any chance to recover. The truth is that it actually works. For instance, I have just come out of 2 trades in the forex market; one for the EURAUD and the other for the AUDUSD. I was bullish on the AUD, but one of the trades was negative to -75 pips at a point, while the other was -30 pips at a point. Some traders would panic on seeing the red colour of negative pips everywhere, but knowing fully well that the AUD was soon to be on a bullish roll as a result of some positive market data, the trades were allowed to run and they recovered to 73 pips and breakeven respectively.

When you need some time to let your well analyzed but probably ill-timed trades to recover, the roll forward feature is what you need.

Using the Roll Forward feature will cost the trader some money, just as we have in the variable option feature. But this is a small price to pay to have your trade rescued from ruin.

Once again, it is not recommended to use the Roll Forward at the slightest opportunity; abusing this feature could get you penalized by your binary options broker. It is very important that trades are analyzed carefully and expiry times planned properly so that you will not have recourse to using the Roll Forward tool every single time your trade runs into trouble. Do not succumb to the tendency to get careless with your trade planning just because you have a Roll Forward feature. It is only available on few broker platforms anyway, so many traders will not have the opportunity to use it. But if you are lucky enough to have an account with a broker that offers it, then use it carefully.

How Postponing Binary Option Expiry Times Can Work in Your Favour

How to Expiry Times Work in Binary Options

Updated on: 6 January 2020

Expiry times are one of the most important elements of binary options trading. In case you didn’t know already, you’ll win in binary options trading if you’ll manage to accurately predict the movement of an asset during a certain time frame. Your prediction will have to come true by the time of the so-called expiry of the options contract.

Understanding how binary options expiration times work is imperative in becoming an experienced binary options trader. There are expiry times with various lengths in the binary options business. Some offer much better winning odds and probabilities than others.

Likewise, the binary options expiry times you should choose also depend on the type of asset and the option selected. If you know which expiries work best with certain assets, you’ll be able to purchase those contracts that offer the best winning probabilities.

What Are Expiry Times in Binary Options Trading

Expiry times in online trading are the time limits until which the prediction made by the trader will have to come true in order for the trader to win the purchased binary options contract. Expiry times are basically the deadline of an options contract.

If the prediction made by a trader will not come true by the time of the expiry, the trader will lose the investment. If the prediction will come true after the time of the expiry, the trader will still lose his or her investment. Only what happens at the moment of the expiry matters.

Binary options expiration times are displayed on a countdown clock format related to every option. Here, players will be able to watch the time remaining until the options contract expires. Once the contract expires, the trader is not able to perform any more actions related to the expired contract.

How are expiry times established?

Most binary options brokers offer fixed expiry times that were previously established. However, some other brokers will allow traders to choose the expiry times that fit their trading style and trading strategies the most. There are basically two types of expiries.

Short expiries – Short binary options expiration times are those expiry rate that range only in a few minutes. The most common range for these expiries is 1 minute to 5 minutes.

Medium expiries – Contracts that expire between 5 minutes to 1 or 2 hours are contracts with medium expiration times. These contracts may some times pay put better than the ones with shorter expiries.

Long expiries – Some brokers offer online trading contracts with expiration rates of 2 hours to even 24 hours. These are the contracts with the long expiries in the financial trading business. These are also the ones that can be predicted the easiest.

Most optimal expiry times

The most optimal expiry time depends on multiple factors such as traders’ expectations, desired payout rate risk factor and more. Below you’ll find a description about the most advantageous expiry times in online trading.

Binary options with short expiry times are a bit harder to predict than contracts with longer expiration times. This is because it’s much harder to predict the movement of certain assets within a time frame of just a few minutes.

However, these are also the best paying contracts and also the ones that are in our opinion the most exciting. Having to wait a full day for the expiration of a contract is not that exciting to be honest, however, if the contract expires in a few minutes then you’ll enjoy trading much more.

Contracts with medium expiry times are a bit easier to predict than the ones with shorter expiry dates. However, these contracts usually pay out worse than the ones with shorter expiries and in our opinion are less exciting as well.

Contracts with longer expiries can be predicted easier because it’s much easier to predict the movement of an asset during a longer time frame. These contracts are safer indeed but they are also a bit boring to be honest and offer lower payout rates than other options.

Most optimal expiry times for various assets

Something that perhaps most traders are unaware of is that it does matter what expiry times you choose while using different assets. This is one of the few small things that considerably enhance the winning odds of those traders who are aware of them.

In case of commodities and indices, traders are advised to choose short expiry times. This is because commodities and indices are known to be those assets that fluctuate less. As such, making accurate predictions in the short term is very possible.

This will allow traders to purchase more contracts in a shorter time frame and as such, make more money than the usual. In case of forex options it’s recommended to choose medium to long expiries. This is because the exchange rate of currencies usually experiences very small changes very frequently and abruptly. However predicting the overall change in the exchange rate of a currency pair over a longer time frame is actually quite easy.

In case of stocks you traders should choose medium to long expiries. Subtitle changes in the movement of pretty much all stocks are being experienced at almost at a constant basis. However, the movement of most stocks can be predicted with a very great accuracy over a longer time frame such as a few hours.

Binary Options Brokers with the Most Flexible Expiry Times

When it comes to binary options expiration dates, traders should choose those brokers that have the most flexible expiries. If you’ve read the paragraphs below, then by now you’ll know that the correct usage of expiration times is a very important factor in developing a winning online trading strategy.

If only a very limited selection of online trading expiration rates are offered, then traders won’t be able to use the strategies and tips described above. Some fraudulent brokers intentionally don’t offer a flexible selection of expiries in order to prevent traders from winning.

However, all serious brokers offer multiple binary options expiries in order to enable traders to develop their strategies. Only register at these kinds of brokers. Binary options trading isn’t the same as gambling in the sense that in binary trading you can actually increase the winning odds into your favor. However, this can only be achieved at a legitimate broker.

The brokers we list on our website are all legitimate companies that offer a very large variation of expiry times. Register at these brokers and you’ll be able to use all the strategies and tips that we’re teaching you on our website.

Binary option expiry time

These options can be traded at any time at a rate based on market forces.

Best Trade Expiry Times for Binary Options Trading

Even the shortest expiry you can find with binary options the 30 seconds expiry of short-term options is too long to make money.

Binary Options Expiry Times & Chart Time Frames – Tutorial #6

4: time frames help you to understand your current movement bettereven if you know that you can make the most money by trading movements on a time frame of 5 minutes, other time frames still have a lot to offer for you to help you trade better.

Binary Options (BO207) – Expiry Times

Most obvious limitation is that time frames of days, weeks, and months are impossible to trade with binary options.

There are some time frames you should never trade with binary options and some that are of limited usefulness.

Expiry Times for Binary Options Trading – BO207

The best time to rapid fire trade is when a strong price trend is in place.

Never Trade 15 Minute Expiry in Binary Options

At all times there is full transparency, so a trader can exit with the profit or loss they see on their screen in each moment.

How Variable Binary Options Can Work in Your Favour

How Variable Binary Options Can Work in Your Favour! While it is true that binary options has many advantages that make it an appealing prospect for traders, there is one big disadvantage with binary options. Once a trade has been placed, you have to wait for the trade to expire to know the trade outcome.

I have found myself in a situation where I opened a Rise/Fall trade which was immediately in the money within 5 minutes. However I got my expiry dates all wrong and I watched helplessly as a contrarian effect hit my underlying asset and my position eventually reversed and ended up out of the money. This is a huge problem faced by many binary option traders.

However, a solution has hit the markets. A few binary options brokers have now made a departure from offering strict fixed odds in binary options to offering variable or flexible odds in the market. This feature allows a trader to either take profits before the expiry date, or cut losses before expiry. Let us use a practical example to illustrate this point.

Let us assume that a trader purchased a binary options contract on an underlying asset such as the EURUSD. Perhaps the trader may have betted on a bearish move on the EURUSD, selecting a “Fall” trade on the Rise/Fall binary options variety on a Friday before market close. A possible factor that the trader may have considered is all the bad news from the Eurozone; the credit rating downgrades, threat of Greek default, sovereign debt issues in Italy or Spain, etc. He places the trade with extreme confidence, only to wake up on Monday morning to discover that events over the weekend have conspired against his trade. Perhaps the Eurozone financial ministers met in Brussels and took some far-reaching decisions that the markets interpreted as being Euro – positive. Seeing that his expiry was set at Monday close, the trader may realize that his trade may just end up on the losing side and cause him to lose his money. How Variable Binary Options Can Work in Your Favour

This is where the Take Profit feature comes to the rescue. If the trader wakes up on Monday and sees that his profit has dwindled from 45% on Friday close to just 13% two hours after market open on Monday, he can decide to lock in the remaining profits before the Monday close expiry.

Usually, there is a cost to using this feature, and the trader may have to pay a fee to be able to lock in profits before time. In addition, traders must remember that underlying assets may not be available for lock-in of profits all the time or the process would be severely abused. Usually, there are specific times during which profits can be locked in. There are also restrictions on how often a trader can lock in profits in a day, and usually lock-in of profits may only be available for some underlying assets and not for others. We may also see restrictions that allow a trade to lock-in profits only if he has been in that trade for a specific amount of time.

Whatever the restriction, we have to applaud the benevolence of some trading brokers that allow traders to use this feature. It is a lot better to be able to conserve profits some of the time rather than not being able to do it at all.

So if you are interested in adding this feature as one of the things you would desire to see in your trading platform, consider searching the internet for a suitable broker.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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