Binary Options Contract Lengths
Binary options contract lengths range from just a few seconds to several weeks or even months. Based on factors such as market knowledge, experience with conducting analysis and your desired strategy, certain expiry times may offer advantages. This guide will list and detail the different binary options contract lengths and provide a guide to choosing the right expiry time for your trading style.
Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders. IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders. CloseOption is a Georgia-headquartered broker with over a decade in the trading industry. The brand offers high/low binary options trading on forex and crypto markets, with decent payouts, welcome bonuses, 24/7 customer support and intuitive trading software. Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes. Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading. Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills. Focus Option is an offshore broker that specializes in binary options as well as CFDs. Binary options trading on forex, cryptos and three commodities is done through the broker's simple web-based platform with average payouts between 70% and 95%. The broker also offers a mobile app for trading CFDs, with 300+ tradeable instruments. RaceOption is a binary options broker operating from the Marshall Islands. With over 1,500 clients, the broker aims to offer fast funding, low fees and a secure trading environment. Traders can access over 100 binary options and CFDs, plus copy trading and weekly prizes. BinaryCent is an unregulated binary options broker that offers 24/7 trading on forex, cryptos and stocks with payouts up to 95%. Despite its lack of regulation, this broker takes client security seriously and stores client funds in European banks. The broker also offers CFDs with very high leverage up to 1:500. World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets. AZAforex is a multi-asset broker founded in 2016. The brand offers a sophisticated proprietary platform, ECN trading and 40+ deposit methods. The brokerage has 120,000+ registered customers with copy trading and a VPS.Binary Options Brokers UK
Binary Options Contract Lengths Explained
Turbo Binary Options
Turbos offer the shortest binary options contract length with expirations ranging from a few seconds up to 5 minutes. Pocket Option, for example, offers turbo binary options which expire after just 5 seconds.
These ultra short-term binaries allow investors to capitalise on small price fluctuations. And because the binary options contract length is so short, analysis is often dependent on technical research rather than fundamentals. For this, you could use short-term indicators such as simple (SMA) and exponential moving averages (EMA). To help make your predictions more accurate, many trading platforms also allow binary options traders to overlay several indicators onto historical data charts and graphs simultaneously.
High-quality charting platforms such as MetaTrader 4 (MT4), MetaTrader 5 (MT5) and TradingView all have numerous in-built indicators which are invaluable for conducting research.
An example asset that could be suitable for turbos is Ethereum, the price history graph for which can be seen below, which demonstrates how volatile the price is over a few minutes.
Ethereum Price Chart
Medium-Term Binary Options
These are longer binary option contract lengths ranging from a few minutes up to several hours. They still expire relatively quickly but allow time for trends to develop. It is easy to access medium-term binaries – they are offered by many top brokers, including Focus Option and IQ Cent.
To execute medium-term binary options, the main source of research is technical analysis, however, investors should still consider fundamentals. For instance, a company releasing its quarterly earnings report can impact the stock price depending on how successful they have been over the past three months. For this reason, you may want to keep an eye on an economic calendar to be aware of upcoming reports and announcements which could impact a security’s value.
Long-Term Binary Options
These are the longest binary options contract lengths normally lasting over a day and up to several months or even a year.
Long-term binaries are tailored toward fundamental research with supporting technical analysis. Having knowledge of specific sectors and industries will help you make more accurate predictions as to how an asset’s value can change. Particularly as the value may be impacted by wider, geopolitical events.
To demonstrate this, the recent price history and strength of the Ruble can be used. Before the Russian invasion of Ukraine on the 24th of February 2022, the USD/RUB forex pair was trading at just below ₽80, however, by the beginning of March, this had increased to over ₽105.
USD/RUB Price Chart
Race Option is one broker offering longer-term binaries with contract lengths of up to a month. Simply select the end date and the contract will finish at the same time of day as the contract is opened. For example, if you open a contract at 11:00 AM and choose an expiry of two weeks away, it will expire at 11:00 AM on that day.
Choosing A Binary Options Contract Length
Your Strategy
You need to first determine the binary options contract lengths that suit your trading style and expertise the best. For example, if you have experience with short-term strategies like scalping then turbo binaries may suit you due to the fast-paced nature and dynamic price movement. On the other hand, if you prefer to make longer-term predictions on the value of stocks, for example, then longer expiries may suit you.
If you are unsure, many brokers such as IQCent and Quotex offer free demo accounts where you can practise trading different binary options contract lengths.
Broker Availability
Not all brokers offer a wide range of binary options contract lengths. Some platforms specialize in short-term expiry times, while others only offer binary options contract lengths of one day or more.
Additionally, you should find a binary options broker that offers trading on the underlying assets and markets you are interested in. Most binary options brokers provide indices and stock trading but these will not necessarily be the FTSE 100, stocks listed on the London Stock Exchange, or large numbers of forex pairs including the GBP/EUR.
As well as the binary options contract lengths offered, you should also consider other factors such as trading platforms and mobile apps, user reviews and payouts. The trading platform is where you will execute trades and complete any analysis on ETFs, for example, using real-time data and live price charts.
As binaries are not available through FCA-licensed brokers, UK-based traders will need to open accounts with unregulated or offshore brokers. With this in mind, it’s important to sign up with trusted and reliable binary options brokers that offer a range of expiry times.
Note, the top brands also offer daily gains calculators, economic calendars, provide answers to key questions and share definitions of niche binary options products.
Markets
Some markets are better suited to particular binary options contract lengths. For instance, cryptocurrencies are highly volatile and can be impacted by many factors which can make them hard to forecast in the long term. Because of this, they are arguably better suited to short-term binaries.
On the other hand, indices such as the FTSE 100 are made up of a number of high-performing stocks, meaning they have relatively low volatility but can be impacted by industry-wide news and longer-term economic trends, lending them to binary options contract lengths that span weeks or even months.
Bottom Line On Binary Options Contract Lengths
Binary options are a difficult instrument to consistently make money with. For this reason, find a binary options contract length that suits your strengths and trading style, whether that is daily trading or swing trading. If a certain strategy is not working for you, it may be worth registering for a free demo account and testing other types of contracts and expiries. Over time, you should be able to develop your own strategy and determine if turbo binaries, short-term binaries or long-term binaries are best.
Use our list of the top binary options brokers in 2024 to get started.
FAQ
Is It Possible To Change The Binary Options Contract Length After I Open A Trade?
Some brokers may allow you to change your binary options contract length. Check with your brokerage beforehand to see if they permit extensions to binary options contract lengths or early closing. This will differ between brokers and you may need to pay a premium to alter the expiry time.
What Are The Best Binary Options Contract Lengths?
The best expiry time will differ from one trader to the next. If you prefer a fast-paced trading environment using technical analysis then short-term binaries with expiries of just a few minutes or hours may suit you. Alternatively, if you prefer to make longer-term forecasts on equities using fundamentals then you may prefer to open a contract that spans several weeks or even months.
What Binary Options Contract Lengths Are Available To UK Investors?
There is a wide range of binary options contract lengths on offer to UK-based investors. Brokers such as BinaryCent offer turbo binaries with very short expiry times of a minute or less. There are also brokers that offer longer binaries of a few hours or several days, including Focus Option.
Where Can I Learn More About Binary Options Contract Lengths?
There are many helpful resources online that can educate you on the different binary options contract lengths. Examples include training courses or books and PDF guides that you can download. We also recommend using a free demo account to test different binary options contract lengths.