Binary Weekly Options
Flexibility is one of the main advantages of trading binary options. The options of what can be traded with binary options are virtually endless and includes assets from every market on earth. Traders can chose to trade commodities, indexes, stocks and currency pairs. The time limits for trades is also entirely at the discretion of the trader and can range from minutes to hours to months or longer, depending on the traders risk profile and what is being traded.
The shorter time limits make it possible to trade on a day basis where the trader will have trades open during the day and then close all his trades at the end of the business day. They don’t have to be left open over-night where the risk might be disproportionately high. They also facilitate trading when the markets are quite flat.
Daily options serve a purpose for traders wanting to use hedging strategies against other commodities over a trading day’s variations.
On the other hand, weekly options end their life at the end of the trading week and are used by swing traders during the course of the week and by day traders at the end of the week. As Friday afternoon draws close, the expiry of the trades make it more interesting to day traders.
Trades of a higher risk profile are event based contracts. Traders take positions based on their prediction of the reaction of the markets to any forth-coming news release associated with the event in question. They do this fairly far in advance and continue to take positions right up to the breaking of the news which is when the trades expire.
Weekly options are trades that expire when the relevant market closes at the end of trade on Friday. The expiry happens at close of business on Friday regardless of when in the week the trade was taken out. The trader will benefit from the trade if he was able to predict the correct movement of the stock.
The use of different time frames and different long and short term views in a trader’s portfolio will help spread the risk and employ the use of varying strategies, all of which can impact favorably on the trader’s success.
How to Find Which Weekly Options are Trading
The commodities and stocks traded as weekly options might change from week to week. The applicable practise will vary from one exchange to another, so it is wise to find out what the situation is with each place you trade, or with your broker, if you have one. Another way to find out is through the exchange’s website. They should have a section devoted to delisted and new Weekly Option Products.