How to Expiry Times Work in Binary Options

Updated on: 6 January 2020

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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.

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