What is the Duration of Trades?

The size of price movement in binary options does not matter, but the duration of the trades does matter. There are very specific timelines with binary options that you need to adhere to. Short timeframes and long-term timeframes are available to traders, and each has specific benefits and pitfalls. One of the decisions that you must make as a binary options trader is to determine what duration works best for you. You may be the type of trader who enjoys turning money around in a relatively short period of time. In that case, short-term trades will be better suited to you. If you have no problem having your money tied up for several hours then long-term trades are better suited to you. In this vein, short-term traders can choose anything from 60 second binary options to 5 minute binary options.

Once you have decided upon a particular timeframe, you will need to stick to it. There is no backing out of the trade. With many other types of trading activity, including CFDs, stocks and other options, you can sell your purchased assets prior to the expiry time. This happens all the time with futures. Remember though that this generally cannot be done with binary options brokers. In very rare instances, your selected binary options broker may offer a small refund on a trade that you sell prior to expiry time. However it is not recommended until you have sufficiently advanced your trading capabilities to a professional level, and only if your particular broker allows for such eventualities.