Five minute binary options expiry times are now being offered by brokers such as Best Brokers. Shorter expiry times such as this appeal to traders who wish to add profits to their account quickly. On the flip side, fast losses can also occur if the trader does not know how to trade correctly using short expiration times.Â Fast trading does not eliminate the need to perform analysis, but may require that these processes be completed quickly in order to execute a timely binary options trade.
Specific trading systems can be developed around five minute trades. A good system will allow the trader to trade for shorter periods of time each day, while still being able to earn high profit levels. Though some do earn a living from binary options trading, most use this financial instrument as a means of earning additional income. This could mean that the trader only has a limited amount of time each day to devote to trading. Â Shorter expiration time periodsÂ can help overcome such restrictions.
Five minutes is not a long period of time. However, some binary options traders will end the five minute trade early in order to lock in profits. The ability to end trades early is one that is offered by many brokers. Since the asset price progress must be monitored while the trade is live in order to benefit from closing a trade early, long term trades will not be the best option. Alternately, no one should have any problem sitting in front of the computer for five minute time frames.
Fast binary options trading can be done using several different trade types. The basic High/Low trade is often used for fast trading as it is considered by most to be the simplest. Using this trade type and simple analysis, the put or call decision can be made in very little time. Remember, time is of the essence when participating in fast trading. Some use a strategy of purchasing the contract in the very last minute. However, this is typically not a good idea as at least one minute may be needed to process the trade.Â Lower internet speeds could cause problems.
The potential of a trade ending at the money is higher with five minute trades. This is simply because shorter time frames increase the likelihood that no movement occur. Though at the money trades result in the binary options trader receiving a full refund of the investment amount, most traders consider such an outcome a waste of time. In order to decrease this possibility, traders using fast trading methods are advised to select underlying assets that are actively moving.
Fast trading can be done by binary options traders of all skill levels. New traders, however, are advised to make their selections carefully and limit investment amounts until a higher level of comfort in trading is realized. Five minute expiry times are just one option to consider. Most brokers now offer several different expiration time frames to choose from.Â Traders should always be mindful of the importance of the expiry time selection.