What are binary options with an expiration of 1 to 6 months?
Binary options trading is becoming more and more popular today, we hear more often about the profession of a trader. Trading is gaining momentum because you can really make a profit in 30 seconds . In addition, working on the Internet in the format of “when it is convenient” is one of the trends that they strive for and which is so easy to implement thanks to trading. It is also easy to start the first steps in options: there are a lot of reviews about trading on the network, enough material about productive strategies and indicators.
Our broker ratings will help you decide which trading platform to work with. Expiration is a concept that needs to be paid attention to if you want to get a stable profit. Your results will also be affected by the correct use of oscillators, the basics of money management.
Binary options with an expiration of 1 to 6 months are one of the types of long-term options, the term of which lasts up to a maximum of 6 months (up to 180 days). Being one of the longest expiration periods, such options have their own characteristics. Contracts with such a duration are not offered by all trading terminals. Such expiration is more suitable for professional traders who have a positive experience of fundamental analysis.
To place a bet, you need to turn to macroeconomic data: news, statements by top officials, the political situation, analytics, expert forecasts and economic data. Those market participants who are solvent, have free money that can be invested in the option and wait for the expiration date can work with long-term options. Brokers that provide an opportunity for long-term trading, thereby supporting serious and reliable traders who see options trading as the main source of income.
At what time to trade options with an expiration of 1 to 6 months
The advantage of binary options is that you choose the schedule that is convenient for you to start trading. This can be influenced by your goal, strategy, type of asset, your capabilities. Working with long-term options, you get an advantage, unlike, for example, turbo trading in 60 seconds. Before making a prediction, you can use all the trader’s tools that will help you make the right decision and earn income.
Not sure when to start trading? Perhaps the schedule of the trading day will help you:
- Such a day usually begins with the eastern hemisphere (02:00-12:00 Moscow time)
- Further, Asia joins the auction (04:00-13:00 Moscow time)
- Then, Europe (09:00-17:00 Moscow time)
- The day ends in the USA (17:00-02:00 Moscow time).
The most active period for transactions is from 09:00 to 13:00, then from 16:00 to 18:00 (Moscow time).
In addition, the correct orientation to fundamental factors (for example, statements by officials of the European Central Bank, well-known high-profile events (release dates, new versions of smartphones, etc.), publications of macroeconomic indicators (Nonfarm Payrolls) that affect market dynamics will help you determine the start time of long-term trading. So, by analyzing this data, you will make good money.
Advantages of long-term options
- The main significant advantage of such trading will be the minimization of risks. It is much easier for a trader to understand the dynamics of the market over a long period of time (from a week to 6 months).
- Guarantee of a stable income.
- Long-term options are much easier to predict, their result is predictable and understandable.
- You have more opportunities to study the market and external factors, prepare carefully and make the right forecast.
- Such trading is ideal for those who, when making a decision, are accustomed to relying on fundamental analysis, understand the events and facts affecting the global economy.
- Ideal for self-confident, thoughtful and prudent traders.
- Ideal for experienced market players who, first of all, rely on getting a decent income.
- In many ways, they are also recommended for beginners of options, for whom it is important to be able to analyze the situation, to make correct forecasting of market dynamics.
- Ideal for those who are looking for and developing their own successful trading strategy and are set up for serious work in trading.
Disadvantages of long-term options
- A very long wait for the results of the option.
- To participate in long-term trading, you will need more funds on deposit than with turbo trading.
- Not suitable for those who need instant profits in the near future.
- Not suitable for those who do not like calm and measured trading. These are the market participants who prefer to take risks, love excitement and dynamics, they are bored with the great expectation of the result.
- Not suitable for those who do not have the skills to analyze the market situation, because Minimal preparation is required in theory.
Risk management during long-term trading
Rules that will help you reduce losses in long-term trading:
- When starting a trade, eliminate emotions, use accurate data, weigh the information,
- Before working on the strategy, check its effectiveness on the broker’s demo account,
- To work, choose a reliable platform, see the ratings of brokers,
- Do not trade in borrowed capital, because you will feel psychologically confident with your money,
- Pay special attention to analytical data, which will be more important than trading: analyze based on data on the behavior of the asset over the past period, so you will see its dynamics,
- Keep data about your trading (trader’s diary) with fixing the results of trading, profit and expenses, because it will show you the dynamics of your work,
- When trading, rely on the materials of fundamental analysis: it can be the consumer price index, the political situation, the unemployment rate, etc., at different times,
- When trading, also rely on technical analysis materials: proven oscillators and reliable strategies.
Binary options strategies with expiration from 1 to 6 months
Trading according to the Elliott Wave Theory. This theory should actually be known to every trader, not only professionals. According to the theory, the behavior of all market participants is manifested with the help of clearly defined waves. So, each cycle includes 8 peaks. After the positive stage (1, 3, 5, 7) has passed, a negative peak will follow (2, 4, 6 and 8). Peak 5 is considered the most positive, 8 is the most negative. This cyclicality concerns, for example, the dynamics of the exchange rate. Thanks to this theory, it is possible to make a forecast of currency movements not only in the long term, but also in the short term.
Trading with the help of functional analysis. This type of analysis becomes the main one for long-term options, especially those up to 6 months long. It will allow you to predict the movement of the market as accurately as possible due to the points of economic shift, which will serve as a prospect of a trend change. News, speeches of top officials and chairmen of central banks, and the political situation will help the trader in this. This analysis will help you get the maximum positive effect from trading.
Trading with the help of technical analysis. This type of analysis will help you see the movement of the market by researching the mechanisms that directly affect pricing. Most traders prefer to work with the MetaTrader 4 terminal (download), which allows you to test and use the data of any instruments. According to proponents of the method, the price of an asset includes all events taking place in the world. Like fundamental data, it is a subjective analysis. In technical analysis, methods of breakouts of channels, zones and so on are used. Such an analysis takes place on the chart, without the use of data from lagging indicators.
A combination of fundamental and technical analysis. The combination of fundamental and technical analysis is one of the most optimal ways to predict the market, because In this case, to make a decision, you use more facts that will give a complete picture of the market.
Trading with the help of indicators. This is one of the easiest ways to trade, which will allow you to make predictions using indicators and trading strategies. So, the trader gets the opportunity to earn without thinking. Oscillators generate signals, and all you have to do is open a trade. And yet, indicators have a peculiarity, which is that they make signals based on past data, show what has already happened. It will be risky to use data from only one indicator, so it is worth combining them with other strategies.
Binary Options Trading Rules
- Always improve your trading, learn new theories and test tools.
- Devote more time to training and practice, considering trading a profession that brings you the main income.
- Use money management rules that will save you money on your deposit.
- You should not trade using the “what if you’re lucky” method.
- To predict the result, use all the methods available to you: functional and technical analyses, strategies.
- It is recommended to always check the results of analysis and strategies on a demo account.
- Choose your broker carefully.
Binary options trading with Finmax broker
If you want long-term trading to help you get the maximum income, we recommend that you trust your funds to a trusted Finmax broker. This modern terminal will appeal to you with a convenient personal account, a set of necessary tools, materials on analytics and training, and a fairly large selection of options and expiration dates will also help you in your work. To start earning income with a broker, prepare an option and place a bet, it will finmaxbo.com take a minimum of time on the site.
To buy a CALL option on the Finmax platform, you need to go to the finmaxbo.com website and prepare an option, indicating: asset, expiration, rate, forecast of dynamics: UP, click the “buy” button. Now it remains to wait for the results of the forecast:
To buy a PCI option on the Finmax platform, you need to go to the finmaxbo.com website and prepare the option, indicating: asset, expiration, rate, dynamics forecast: DOWN, click the “buy” button. Now it remains to wait for the results of the forecast:
Conclusion
Long-term binary options trading with an expiration of 1 to 6 months is one of the most profitable types of trading, which will make it easier to analyze the market situation and get a stable income.
If you want to get the most out of long-term trading, you should always follow the news release and reaction to these market materials, also test new oscillators and trading systems, develop your profitable strategy and, achieving one goal, always set yourself another.
