How Long Should I Place a Trade for?
So how do you decide the expiration period of a trade? With binary options trading, some products already have pre-defined expiry periods for traders to choose from. For example, at 13.00 today, there may be three different time periods in which one could trade the same security, with closing times at 13.15, 13:30 and 13:45.
For many products that ETX capital offers, there are also both short- and long-term options available, enabling you to choose a time period that best fits you. This means that you could proceed with a trade a mere 60 seconds in length, or up to a day if this suits your strategy better.
In some cases, traders have the ability to end an open position, either resulting in a smaller sized profit, or a lower level of loss, based on the current position of that option at the time of the early closure.
When approaching binary trading, the three stages described above: the amount of money to place on a trade, the way to position yourself in the market, and for how long you want your trade to run for – are key points to take into account when thinking about trading binary options.
For more information on binary options trading, do have a look at our Binary Options Strategies page.
Binary Options are not regulated by the Financial Conduct Authority