This is something you will figure out quickly when you start trading. You are given a finite selection of trade opportunities and expiry periods. If you pick the wrong expiry time, even with a great trade setup, you will lose. So, how do you choose the best expiration period for your trades? That is the subject we will explore in this article. But first, I will go over expiry basics with you just in case you are a complete newbie.

You answer that question by choosing High or Low sometimes termed Call or Put. If when the trade expires you were correct, and the asset is priced as you anticipated, you would win.

Otherwise, you would lose. If it was trading below it, you would lose your investment. With a regular FX trade, you would use a market order to buy immediately, or a limit order to buy when price hits a certain level. You would then be in the trade. You can then sit around in front of your computer and exit the trade manually whenever you want, or you can set up a stop-loss and walk away to exit automatically at a certain level.

You should now start to see why the expiry time system used in binary trading is restrictive. With traditional forms of trading, you can exit your trade whenever you want. That means you can be entirely strategic about it. If necessary, you can do it on the spot.

But with binary options trading, that is not always possible. The expiry time you picked at the start of the trade is the one you are stuck with there are some exceptions — see the section on early close below. So how can you tackle these choices and choose profitable expiry times? Following are four suggestions. No matter what, the first thing you need is some kind of strategy to trade with. You need a system which gives you entry rules.

You must start by learning how to recognize those formations. Then you need to come up with a rule for how and when you will enter trades. The next recommendation is that you go through and backtest your strategy as you would trade it for traditional FX. Go through old charts and note down trade entries you would take as well as the exits you would ideally make. If the results are profitable, you have a system that may potentially work for binary options as well.

When trading digital options , you'll need to predict not only the direction of the asset's price but also how far prices will move from the strike price. Chart features you need to be familiar with when trading options and digital options.

This is found on the right-hand side of your trading interface. This indicates the trade expiry. The default is set at 1 minute for both options and digital options. You can increase the time to expiry by clicking on this feature.

The possible expiry will then be displayed allowing you to choose the expiry you prefer. This is a white dotted vertical line that appears on the price chart. This line indicates the amount of time you have left to open a position. Once the timer reaches zero, it the countdown starts at 60 seconds. As long as the timer hasn't reached zero, you can open as many positions on the specific asset you're trading.

This is a red vertical line that also appears on your price chart. It also includes a countdown clock which indicates the number of minutes or seconds remaining before the options trade expires. Once the price touches this line, the position is automatically closed. When trading using bar or candle charts, the time interval represents how long it takes for a candle to open and close.

The candle and bar time intervals on IQ Option range from 5 seconds to 1 month. In fact, the time frame of a chart depends largely on the time horizon of your trades, the trading style you prefer and finally how much time you can devote to trading per day. In our recommendations, I will focus on day trading because it is the most popular.

I recommend using Japanese candle charts when trading. They are easier to read and analyze compared to line and bar charts.

Use 5-minute interval candles. These give you a better picture of how the prices are moving compared to candles lasting 5 seconds to 1 minute which fluctuate frequently. A binary options trading strategy is a set of rules that decide when and which option you open.

The difference in stock market timings is both boon and a bane. On the one hand, you have 24 hours of trading time, but on the other, these differences might not let you trade your desired assets. For example, the middle eastern stocks exchange timings are not easy to be adjusted by the UK or US trader because the DFM is 8 hours ahead of New York Exchange. So, either you have to leave that asset or wake up late at night to execute your trades.

Some brokerage firms take their days off on weekends because not many traders want to use the platform for technical analysis. To trade on weekends, choose a broker who supports weekend transactions. You can also contact customer support for more information regarding the trade timings. Due to closing hours, the market actions become flat, and the trading volume drops, giving you a low responsive chart and not a healthy market.

However, these restrictions and be disabled with few alterations by finding an idea brokerage firm and using other available assets. The binary options are a versatile market with numerous assets available to trade in. but all these assets are not present all the time. This is because different places have different time zones.

In the binary market, forex and stocks are heavily traded, especially during the overlapping of major stock market time. The US stocks are widely popular, and they are opened usually between pm GMT to 8 pm GMT or am EST to 4 pm EST. the activities face a drop between 4 pm GMT and 5 pm GMT.

On the weekdays, European stocks like Xetra Dax and FTSE are traded from 11 am to pm GMT. These are the standard times when the binary market opens and closes.

But the trading time highly depends on the binary options trading platform you are using. You can always contact customer support to know the trading times for your desired assets. Due to low activities on weekends, the market is not that responsive. Hence, planning and strategizing the weekend trading on binary is the best option to gain profit. Gap trading means price jumps and is used in the forex market. This trading strategy is best for the weekend as you can trade the gaps in the currencies.

The price jumps are caused when some force moves the market and triggers the price to go from one level to another whilst skipping some price levels in between. There are many reasons for the occurrence of price gaps like, when the volume is high, they can be created once the new movements are about to start. Closing gaps are witnessed mostly on weekends because usually, these days are taken off by other traders, and the new movements are highly implausible.

And not a large number of traders are required to form the closing gaps. When those traders invest in the same direction, other traders believe it to be a mistake, start investing in another direction. For the upward gap, they will sell their assets, causing a fall in the market, and eventually, the gap will close. In the downward gap, the investors will start purchasing assets, causing a rise in the market again, which will lead to a close in gaps.

If there is a low volume market on the weekends, brace yourself , as the chances of closing the gaps are high. If you believe the gap is definitely going to close, you can then easily perform your trades because: First, you are aware of the price target, and second, the expiration time. With this data, only you can trade the high and low types of currencies and even the commodities.

Put forward by John Bollinger; these are statistical charts that depict the volatility and the price of an asset over a period of time. This signals you a price channel that the financial market is improbable to set aside.

Bollinger bands are said to be high in prediction, especially on the weekends. There are three lines:. The Bollinger bands are extremely helpful during weekends, and using them properly will give you maximum benefits.

The reason behind this is that with more traders and events happening in the financial industry, the movements will increase, leading to variations in the Bollinger band s. But if the market has low volume, it will become stable, and the chances of any extensive action are less likely to happen.

This makes the bands more precise and beneficial. First, you have to open your trading platform and choose the desired asset.

Then open the price chart and use the Bollinger Bands. Secondly, let the market reach the lines of the Bollinger band. And at last, make your forecast about the market turn around. These are some of the standard approaches which can be used. However, you can formulate your own tactics also. There are many different ways to generate prospects on the weekends. The binary trading is easy and effective not only on the weekdays but on the weekends as well.

With the right broker, you can trade in currencies, commodities, and many other financial derivatives. During the weekdays, when the major stock market timings overlap, you get more movements. However, many traders do not trade during the days off and take their leave. On the weekends, you have a different trading environment with different opportunities. The number one rule is to find a binary options broker who offers you the services of weekend trading. Then apply your strategies and keep trading.

Show all posts. Write a comment abort. Save my name, email, and website in this browser for the next time I comment. Are Binary Options a scam or legit? Are Binary Options Legal in Australia or not? Are Binary Options Legal in Kenya or Not?

There are many reasons why trading binary is attracting more and more traders, and pulling more and more traders away from other disciplines. The very first thing that makes binary better is account size. The second thing that makes binary options better is risk. There is infinitely less risk to a simple yes or no trade than to one that opens your account to unlimited losses the way that spot positions do.

This is why so many forex and commodity speculators have switched. You still have understand the market, work with a strategy, employ a system and use good judgment.

If there is one thing that I can say as definitively being the hardest part of trading binary is choosing your expiry. This is of course assuming you have found a good broker to trade with, have learned some technical analysis and are disciplined enough to trade responsibly.

I have found that no matter which broker, or which platform I trade on that there is very rarely an expiry exactly when I want. This not a fault of the brokers because they, as a whole, try very hard to provide the options and expiry demanded by the market, namely us traders. The very first step in choosing the right expiry is to understand your strategy and how you are trading. If you are a swing trader like me you will definitely need a broker that has at least end of the week expiry if not end of next week, or end of month, or 30 days, or a combination of these.

Not all brokers have them. Most brokers are limited to shorter term expiries because binary options are intended for quick, day trader and option scalper, types of trades. The next step in choosing the right expiry period comes down to the platform and the broker.

The first difference in expiry types is long term and short as in end of day versus end of month expiry. The next difference in expiry types is how expiry is determined relative to time of purchase.

Is expiry set at some future time or date or is it a set time from the time of purchase. Let me explain. An end of month expiry is 30 days, at first. And then it is 29 days, and then 20 days, and then 5 days and then one hour all the way down until the time expiry.

The amount of expiry depends on how much of that time is left when you buy into your position. If I buy and end of month position on the 1 st , I have roughly 30 days. This is also true of short term expiry. An end of the day expiry has 6 or 7 hours of expiry at the start of trading, but less and less as the day wears on so it is important to keep this in mind. Expiry set from time of purchase is much better in my opinion but choosing your broker based on expiry comes down to a variety of factors, not just this one.

This is how 1 hour, 60 second, 1 week, 30 day and 1 month options are set expire, along with many other choices depending on the broker. This means that the options expires a set amount of time after the option is purchased.

I like this better because if I want to trade 30 days I can, and am not hindered by the calendar. It just provides a lot more flexibility. Understanding your strategy is what ties all of this together.

Your strategy dictates what kind of expiry you will need. However, both kinds of traders can use the same tricks to pinpoint expiry times. They do it by measuring their charts. This is one of the most useful tips I can give to a technician. Go back and measure your charts, measure every rally, every decline, every correction, every trading range until you get a feeling for how your chosen asset moves.

In fact, I suggest measuring your chart in different time frames. Then go back and find all the signals you would want to trade on and measure them. Measure how many candlesticks it takes for the asset to move into the money once your signal has fires.

Then average them all together. Then use that figure to pick your expiry, just make sure it can be employed on the platform you are trading. Here are a couple of links to more in depth articles I have written about chart patterns and choosing the right expiry.

Caught between a rock and hard place.

Most brokers are limited to shorter term expiries because binary options are intended for quick, day trader and option scalper, types of trades. Individual Cookie Preferences. Hence, planning and strategizing the weekend trading on binary is the best option to gain profit. Menu Learn trading Binary Options CFD Day trading ETFs Futures Trading Books Calculators Commodity Trading Copy Trading Order Types Portfolio Price Action Swing Trading Trade Trader Trading Indicators Trading Strategies Options Charts Candlesticks Chart Pattern Technical Analysis Forex Crypto Crypto Exchanges Stocks Broker Platforms Software cTrader MetaTrader 4 MetaTrader 5 Trading Apps TradingView CFD Broker Crypto Broker Forex Broker Trading Accounts Glossary. For more information read our entire risk warning. Binary options are unrivaled in their simplicity.

Categories:

• Binary Options
• Forex
• Binary Options online
• Forex Brokers
• Forex Bitcoin