Binary Options Trades: How Long Do They Last

binary-optionsAs you may be aware, when it comes to binary option trades, they can take place for a range of times. Most commonly the trades’ lengths are 1 or 5 minutes. However, they are available in other lengths too.

1. They Have Value Upon Expiry– One of the things you should know about binary options trades is that they are final, which means you cannot sell them before expiration. If you decide to trade binary options, then you will not be able to sell a position, and when you take a trade, it is final, and you need to keep hold of the trade until it expires. The brokerage is the one that decides when the time expires for each trade, and you will want to take the time it takes for a trade to expire before you actually enter the trade. Basically, you want to make sure you trade at a specific time in order for it to be of any value.

2. Many Traders Prefer Short Trades– The truth is that binary options has a niche that is based around instant gratification, and many brokers offer traders traders that are as short as 30 seconds in length, and this allows traders to make a lot of profit in such a short length of time. However, as good as this may sound, you need to have some sort of system if you want to make money in such a short frame of time. If you do have some sort of system that can predict, to a degree, a trade on such a short length of time, then you will want to make sure your positions are sized up appropriately.

3. Many Trades Are 1-5 Minutes In Length– Some common time frames for trades are 30-60 minutes in length. However, many are between 1-5 minutes. You will know what the period of time on each trade is because the brokerage will display it. You will need to monitor them and make sure that you are entering into the trade for a specific period of time you want.

4. There Are Trades Available For Longer Periods– Traders may sometimes have the option for a month or even longer, but if you do decide to enter such a trade, then you will want to keep in mind the capital you have will be tied up all the way until the expiration date. Remember, there is no way a position can be sold for value once you have entered into it, but if you have a high conviction on the security’s direction over a long duration of time, then this type of trade may be for you. Not all brokerages offer trades that are available for a long time, but you will know what they offer before you decide to trade, so make sure you pay attention to the information that the brokerage is providing you with, as it can help you make decisions in terms of trading.

Also, keep in mind that trades that are usually available for longer periods of time are offered with transactions that involve foreign currency. The reason why this is, is because when it comes to short term read on currency direction, many foreign exchange traders just don’t have it. However, it is worth mentioning that foreign currency trades may be offered with silver prices, stocks, oil, gold and other forms of commodities, so before you decide to trade with foreign currency, you will want to keep this in mind.

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