Long Term Platform

This online Banc De Binary trading platform is a newcomer to the binary options market. As the platform’s name suggests, Long Term options have a longer self-life than traditional binary options, with a choice of expiry dates ranging from one day, to several days, weeks, or even months. The longer expiry dates of these options, moreover, introduce a whole new way of trading and an array of trading techniques not previously available to binary options. With Long Term options, no longer does a trader have to depend solely on technical analysis of fleeting events and immediate shifts in the direction of the markets; they can now rely more heavily on global economic news and external factors that could influence the underlying asset. This means, however, that prior to entering a trade, one needs to understand why an expiry date is recommended and how to analyse the events leading up to it.

Long Term Options Strategies

One of the main advantages of trading Long Term options lies in the lesser degree of risk they offer, in comparison to other binary options. Although less risk brings with it a smaller profit potential, good analysis of events, paired with a strong investment strategy, can turn Long Term options into an important trading tool.

Seasonality: Any experienced trader will tell you that there are certain trends that repeat themselves in the market every year at the same period. Although there is no guarantee that a historical pattern will repeat itself in the same way, an 80-90% repetition rate makes such patterns a significant factor to monitor on the Long Term trading platform. For example, the price of oil can be seen peaking in August of each year on account of the higher demand placed on the market by the many holiday-makers of this month. An investor interested in oil, therefore, should keep this event in mind in deciding whether a Long Term trade in oil will go up or down by the expiry date.

Buy Low, Sell High & Vice Versa: The ‘Buy Low, Sell High’ strategy has been the driving force of the traditional stock market since its inception, and has not previously been applicable to binary options. With trading platforms such as Long Term, however, investors can not only apply this strategy to their trades, they can also from its inverse, ‘Buy High, Sell Low’—an unthinkable notion for those dealing in the stock market. When a currency or a commodity hits a record low, for example, a trader could place a “call” Long Term option that closes at a later time when the market will have return to its normal range. The inverse also works in the binary market: when a value hits a record high, a Long Term “put” option for a later expiry date should catch the market at its return to normalcy and expire in-the-money.