Short Term Options
Short term options trading is popular with retail investors, providing opportunities in various markets. But while some investors use traditional options, others trade binary options, which offer fixed payouts and contracts that expire in just a minute or less.
This trading guide will provide a run-down on the fundamentals of short term options, from strategies and indicators to the best brokers and platforms. We also compare short term binary options with standard options to help you decide which instrument may best suit your needs.
Short Term Options Brokers
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Founded in 2017, Pocket Option is a binary options broker providing high/low contracts for forex, stocks, indices, commodities, and cryptocurrencies. Attracting more than 100,000 active users worldwide, the platform remains a favourite among emerging traders.
Instruments Regulator Platforms Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos MISA Web, MT4, MT5 Min. Deposit Min. Trade Leverage $50 $1 -
IQCent, an offshore brokerage in the Marshall Islands, specialises in binary options and CFDs. The firm provides distinct account options offering bonuses, benefits, payout increases, TradeBacks, and complimentary rollovers. With over 175 assets, 24/7 trading, and 98% payouts, it attracts budding traders.
Instruments Regulator Platforms Binary Options, CFDs, Forex, Indices, Commodities, Crypto IFMRRC Online Platform, TradingView Min. Deposit Min. Trade Leverage $250 $0.01 1:500 -
Capitalcore, an offshore broker based in Saint Vincent and the Grenadines, was established in 2019. It offers traders a choice of four accounts—Classic, Silver, Gold, and VIP. As you progress through these tiers, spreads decrease and bonuses increase. The broker stands out for offering high leverage of up to 1:2000 and zero swap fees. However, these benefits are tempered by minimal regulation from the IFSA and limited educational and research resources.
Instruments Regulator Platforms Forex, Metals, Stocks, Cryptos, Futures Indices, Binary Options IFSA WebTrader, Pro Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:2000 -
CloseOption, based in Georgia, has over ten years of experience in the trading sector. The firm provides high/low binary options on forex and cryptocurrency markets, offering competitive payouts. Clients benefit from welcome bonuses, round-the-clock customer support, and user-friendly trading platforms.
Instruments Regulator Platforms Binary Options on Forex & Cryptos National Bank of Georgia Own Min. Deposit Min. Trade Leverage $5 $1 -
Introduced in 2017, Videforex provides trading opportunities across stocks, indices, cryptocurrencies, forex, and commodities through binary options and CFDs. The platform, alongside its mobile app and copy trading features, is intuitive and caters to novice and occasional traders. Additionally, its market analysis tools and trading contests offer valuable avenues for honing trading skills.
Instruments Regulator Platforms Binary Options, CFDs, Forex, Indices, Commodities, Crypto TradingView Min. Deposit Min. Trade Leverage $250 $0.01 1:500 -
Grand Capital is a MetaTrader broker offering welcome bonuses, trading competitions, and an easy-to-use copy trading service. With multiple account options and over 400 assets, it caters to different investors and strategies. New users can set up an account and begin trading quickly.
Instruments Regulator Platforms CFDs, Forex, Indices, Shares, Energies, Metals, Cryptocurrencies, Binary Options FinaCom MT4, MT5 Min. Deposit Min. Trade Leverage $10 0.01 Lots 1:500 -
RaceOption, a binary options broker based in the Marshall Islands, serves over 1,500 clients. It provides swift funding, minimal fees, and a secure trading platform. Traders can explore over 100 binary options and CFDs, benefit from copy trading, and compete for weekly prizes.
Instruments Regulator Platforms Binary Options, CFDs TradingView Min. Deposit Min. Trade Leverage $250 $0.01 1:500
Pocket Option
IQCent
Capitalcore
CloseOption
Videforex
Grand Capital
RaceoptionSafety Comparison
Compare how safe the Short Term Options are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pocket Option | ✘ | ✘ | ✘ | ✘ | |
| IQCent | ✘ | ✘ | ✘ | ✘ | |
| Capitalcore | ✘ | ✔ | ✘ | ✔ | |
| CloseOption | ✘ | ✘ | ✘ | ✔ | |
| Videforex | ✘ | ✔ | ✔ | ✘ | |
| Grand Capital | ✘ | ✘ | ✘ | ✔ | |
| Raceoption | ✘ | ✘ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Short Term Options support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pocket Option | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| IQCent | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| Capitalcore | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
| CloseOption | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
| Videforex | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Grand Capital | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
| Raceoption | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Short Term Options at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pocket Option | iOS & Android | ✘ | ||
| IQCent | iOS & Android | ✘ | ||
| Capitalcore | - | ✘ | ||
| CloseOption | iOS & Android | ✘ | ||
| Videforex | Android | ✘ | ||
| Grand Capital | ✔ | ✘ | ||
| Raceoption | iOS & Android | ✘ |
Beginners Comparison
Are the Short Term Options good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pocket Option | ✔ | $50 | $1 | ||
| IQCent | ✔ | $250 | $0.01 | ||
| Capitalcore | ✔ | $10 | 0.01 Lots | ||
| CloseOption | ✔ | $5 | $1 | ||
| Videforex | ✔ | $250 | $0.01 | ||
| Grand Capital | ✔ | $10 | 0.01 Lots | ||
| Raceoption | ✔ | $250 | $0.01 |
Advanced Trading Comparison
Do the Short Term Options offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pocket Option | ✔ | ✘ | - | ✘ | ✔ | ✘ | ✘ |
| IQCent | ✘ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Capitalcore | - | ✘ | 1:2000 | ✔ | ✘ | ✘ | ✘ |
| CloseOption | - | ✘ | - | ✘ | ✘ | ✘ | ✘ |
| Videforex | ✔ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Grand Capital | ✔ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
| Raceoption | - | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Short Term Options.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pocket Option | |||||||||
| IQCent | |||||||||
| Capitalcore | |||||||||
| CloseOption | |||||||||
| Videforex | |||||||||
| Grand Capital | |||||||||
| Raceoption |
Our Take On Pocket Option
"Pocket Option stands out with its intuitive web platform, delivering an excellent user experience for short-term binary traders. A $50 minimum deposit makes it accessible for beginners, and account setup is straightforward. However, its market offerings and regulatory credentials lag behind competitors."
Pros
- The web platform excels in its simple design and ease of use, attracting novice traders interested in speculating on leading markets with minimal effort.
- Traders with a deposit of over $1,000 may receive a 2% or higher payout increase, access to more assets, and enjoy exclusive benefits.
- Over the years, Pocket Option has won several annual awards from DayTrading.com, including the notable 'Best Binary Broker 2025' after enhancing its trading tools.
Cons
- Although binary brokers such as IQCent provide returns reaching 98% based on evaluations, others typically offer competitive payouts up to 92%.
- The MISA provides limited oversight and inadequate investor protection for retail traders.
- To gain access to over 250 assets, a deposit of $1000 is required. Without this deposit, traders will only have access to a selection of 130 assets.
Our Take On IQCent
"IQCent attracts traders seeking a simple binary options and CFD platform with minimal fees, multiple accounts, and copy trading. Begin in under a minute with a $250 deposit."
Pros
- The broker provides payouts of up to 98% on binary options, surpassing alternatives such as Pocket Option, which offers a maximum of 92%.
- The broker offers quick and dependable customer support around the clock, usually responding in under a minute during tests.
- CFD trading fees are competitive, with major forex pairs like EUR/USD incurring costs from just 0.7 pips.
Cons
- Automated trading support is unavailable for algorithmic traders.
- IQCent imposes a £10 monthly inactivity fee if a trader does not execute at least one trade each month.
- IQCent lags behind binary brokers such as Quotex due to its limited investment range of approximately 175 assets, including few stocks.
Our Take On Capitalcore
"Capitalcore's main attractions are high leverage up to 1:2000 and no commission or swap fees. Nevertheless, weak regulation from the IFSA and a lack of educational resources leave it trailing behind top brokers."
Christian Harris
Reviewer
Pros
- Unlike the majority of brokers, Capitalcore provides a limitless demo account, which can be set up in less than five minutes.
- Capitalcore stands out as a broker offering zero swap fees, appealing to traders adhering to Islamic Finance principles.
- Capitalcore now offers trading on over 30 currency pairs, metals, and cryptocurrencies. With one-click functionality, traders can enjoy payouts of up to 95%.
Cons
- Capitalcore's limited education and research offerings fall significantly behind industry leaders like IG, rendering it less ideal for aspiring traders.
- During testing, the web platform proved unreliable due to sporadic technical issues, causing the trading platform to fail loading at times.
- Platform support is restricted to proprietary software, lacking integration with popular platforms like MetaTrader or cTrader. These industry-leading solutions provide integrated economic news and facilitate automated trading.
Our Take On CloseOption
"CloseOption is an excellent choice for traders looking for an intuitive binary options platform offering substantial returns and sign-up incentives."
Pros
- The intuitive platform works seamlessly with nearly all web browsers.
- New traders can begin with just a £5 minimum deposit.
- Free practice account
Cons
- Clients must deposit over $50,000 to be eligible for the highest returns.
- Binary options are exclusively offered for both traditional currencies and cryptocurrencies.
- CloseOption lacks regulation by a reputable financial authority.
Our Take On Videforex
"Videforex offers traders a straightforward, user-friendly platform to speculate on popular markets via binaries. The quick registration and web accessibility ensure an effortless start."
Pros
- Videforex is among the select brokers offering round-the-clock multilingual video support, ensuring thorough assistance for active traders.
- Videforex has expanded its offerings, allowing traders to access popular cryptocurrencies like TON, ARB, PEPE, and SHIB, leading tech stocks such as Tesla, Meta, Nvidia, and Amazon, and a more varied FX portfolio including THB, ZAR, and MXN.
- Traders can achieve up to 98% returns on over 100 assets through the broker's binary options, aligning with competitors such as IQCent.
Cons
- Videforex is not licensed by a reputable regulator, leaving traders with minimal or no protection, such as segregated client accounts.
- The lack of educational resources is a significant disadvantage for novice traders. In contrast, leading firms offer blogs, videos, and live trading sessions.
- Based on recent tests, the client terminal requires enhancements, as its widgets occasionally become slow and unresponsive, which could affect traders' experience.
Our Take On Grand Capital
"Grand Capital is a solid choice for traders adept with MetaTrader and passive investors seeking copy trading and LAMM options. However, its regulatory standing falls short compared to rivals."
Pros
- High leverage up to 1:500
- A broad range of payment options and account currencies is available.
- GC Invest platform for copy trading
Cons
- Elevated spreads on certain assets
- Basic education and market research
- Minimal regulatory supervision.
Our Take On Raceoption
"RaceOption attracts traders with its feature-packed binary options platform, offering frequent contests, account benefits, and copy trading. However, its unregulated nature presents minimal to no investor protections, according to our research."
Pros
- RaceOption simplifies account funding with no-fee, near-instant deposits through bank cards and cryptocurrencies. Withdrawals are processed within one hour, guaranteed.
- Returns on well-known assets such as EUR/USD can go up to 95%, outperforming many other options based on our analysis and boosting potential gains. Additionally, the initial three trades incur no risk in Silver and Gold accounts.
- RaceOption is among the select few brokers providing 24/7 multilingual video chat. However, our interactions suggest that their agents require better understanding of trading and regulatory matters.
Cons
- RaceOption operates as an unregulated broker, offering high-risk trading with no investor compensation or legal remedies if trading or withdrawal problems arise.
- RaceOption, lacking both a demo account and educational resources, is not ideal for novice traders.
- The $250 minimum deposit, though still attainable for numerous retail investors, presents a higher entry barrier compared to platforms like Deriv and World Forex, which cater more to budget-conscious traders.
Short Term Options Explained
While there is no concrete definition of what constitutes ‘short’, it is generally thought to be within the range of minutes to hours. The most common contracts tend to be 60 seconds, 2 minutes, 5 minutes, or 15 minutes. However, short term can also go up to a few days. These kinds of options tend to be binary options, as they are more closely associated with shorter expiry times.
Short term binary options contracts work in the same way as their longer term counterparts, in that they are all-or-nothing trades. A good prediction will see traders go home with a fixed payout, usually displayed as a percentage of the stake. A losing prediction will see the trader’s account debited with the initial investment.
Short term options typically ask traders to answer a straightforward question. For example, will the price of the FTSE increase or decrease in 1 minute?
Let’s assume an investor bets $1000 with a 45% payout.
Short Term Options Trade – Pocket Option
Potential outcomes:
- In 1 minute the price of the FTSE rises – The trader is right and wins $1,450 ($1000 + $450)
- In 1 minute the price of the FTSE falls – The trader is wrong and loses the $1000 stake
Note, short term options tend to have higher returns vs longer term options due to the volatility and risk involved.
Short Term Options Vs Short Term Binary Options
When trading binary options, if the trader is incorrect about the direction of the price movement, they lose their entire investment. With standard short term options contracts, the loss is the premium (price) of the contract.
A winning binary options trade simply requires the investor to correctly predict whether the price of an asset will rise or fall. A standard options trader will profit from the purchase of a call contract if, at the expiry time of their short term option, the price of the asset has risen. This is because the trader purchased the underlying asset before the increase in price. They can now sell the asset at a higher price than what they paid. Conversely, a profit is made from a short term put option if the price of the underlying asset falls, and the trader sells the asset before expiry.
With short term binary options, the trader never owns the underlying asset – they are simply speculating on the movement in price. With standard options, the contract holder has the right to buy or sell the asset in question at expiry.
Overall, binary options are more straightforward, but providers come with less regulatory oversight and retail trading safeguards.
Pros Of Short Term Options Trading
- High returns due to volatility
- You choose the size of your position, so you can invest whatever you can afford
- Many binary options brokers offer ultra-short expiry times with contracts from just 30 seconds
Cons Of Short Term Options Trading
- Volatility and unpredictability mean short term options are high risk
- Traders do not own the asset when buying a binary options contract
Strategies & Indicators
Momentum Oscillators
One of the most common types of indicators, oscillators show traders the speed at which prices change by comparing price movements over time. Popular examples include know-sure thing (KST) oscillators and stochastic oscillators.
With candlestick charts, before the price moves in one direction for an extended period, there is typically a long body accompanied by either a long upper or lower shadow. This indicates high standard deviations, meaning there is little stability in the asset at its current price.
Volatility Indicators
These indicators don’t consider the direction of price movement, only the rate of price movement. Usually, when volatility sees a spike, it indicates instability in a market. For beginners, volatile markets should be avoided as predicting the direction of movement in the short term can be difficult without experience.
Some examples of volatility indicators include Bollinger bands or average true range. The greater the distance between the bands, the more volatile the market is.
Trend Indicators
Trend indicators take an average of the price of an asset to measure the direction and strength of a trend. If prices move above or below the trend line, it can be taken as an indicator of either a bullish or bearish trend. If the price consistently deviates from the trend in one direction, a new trend is created. Correctly anticipating the direction of the new trend is when profits can be made.
Volume Indicators
Volume indicators can help to measure the strength of a short term trend. When the volume of an asset being traded increases, it shows confidence in the trend as other traders are also following it.
The best short term options strategies combine a variety of indicators to accurately predict the direction and strength of a trend.
How To Compare Brokers That Offer Short Term Options
- Fees – Short term options brokers may charge deposit and withdrawal fees, commissions, and inactivity penalties. Pocket Option, for example, charges a 0.5% withdrawal fee if using a bank transfer or the Pocket Money system. Importantly, the top brokers will publish details of trading fees on their website. Alternatively, our reviews compare costs across the best short term options brokers.
- Range Of Assets – On which underlying assets can you speculate with short term options? Can you trade currencies, stocks, and commodities? Several top short term options brokers also offer opportunities on cryptos like Bitcoin, including IQCent.
- Customer Service – The best short term options brokers offer 24/7 support. Assistance is often provided through live chat, email or social media messenger. Leading brands can advise on platform queries, contract stipulations, and more.
- Education & Tools – Successful short term options trading is not easy, so traders should look for brokers with solid education bases that introduce strategies and give good trading tips and tutorials. This is particularly important if you are new to binary options trading. Other useful tools for beginners include copy trading.
- Payouts – Short term binary options brokers offer payouts of over 90% on popular assets like major forex pairs. Volatile assets like cryptocurrencies tend to come with lower profit potential.
- Minimum Deposit – Some brokers offer short term binary options trading with a low deposit of just $5 or $10. Again, these are good options for new traders. Also check the list of supported payment methods. Can you deposit with bank cards, e-wallets or digital currencies?
Tips For Trading Short Term Options
- Economic Calendars – Many brokers provide a free economic calendar with upcoming events and announcements. These events can be used to place short term options trades, anywhere from 2 days to minutes before the event happens. Key news events can include interest rate decisions, reports released on company numbers, government jobs reports, press conferences or companies releasing their quarterly income reports.
- Expected Movements – When trading short term options, traders need to be aware of implied volatility and the effects of how the market is expected to move. If you purchase an options contract for an asset widely expected to move in a specific direction, then the premium will be much higher and/or the payout may be lower. Expected movement can also make the market move less which may impact your returns.
- Money Management – Limit the size of your potential losses by not risking more than a set percentage of your total capital on a single trade. This could be 1% – 2% of your account balance.
- Trading Journal – Journals on Google Sheets or Microsoft Excel, for example, are a great way to keep track of your trades. Making notes on each trade including the date, time, and signals you used, can help you to identify which strategies and setups work for you.
Bottom Line On Short Term Options Trading
Binary options are one of the most popular forms of short term options. They are fast-paced, come with fixed risks and payouts, and are available on multiple markets, from stocks to forex to metals. Alternatively, retail investors can trade traditional options which feature some of the same characteristics but with added complexity.
Use our list of the top binary options brokers that offer short term options trading to get started.
FAQ
What Are Short Term Options?
A short term options trade refers to a contract that is opened for a short period, such as a few minutes, hours or days. This is typically done in conjunction with a major event that is going to change the movement of the market drastically. Investors can use traditional options contracts or binary options which have expiries of just a few seconds at some brokers.
Are Short Term Options Risky?
Binary options and other short term options are considered riskier than most due to the volatility present in the short term. Trends are not given a chance to stabilise, so it is even more difficult to be certain of price movements. Still, they can form part of a diverse portfolio.
What Tools Do I Need To Trade Short Term Options?
We recommend using an economic calendar to keep track of major news events, and use this knowledge to predict which way the market is going to swing. From this, you can place short term trades at the right time before the market begins to move.
What Is The Law On Short Term Options Trading?
Standard short term options are legal instruments at supporting brokers. However, there are restrictions on UK-based brokers offering short term binary options. As a result, many investors sign up with offshore firms. See our review for a list of the best short term binary options brokers.
Are Short Term Options Halal?
Short term options are considered to be halal if adequate research is undertaken and if the assets traded are Shariah compliant. However, these conditions may be difficult to achieve, so many Muslim traders opt for alternative trading vehicles.