24option Adds Short Term Trades
If you’re a member of 24option, you may have noticed recently a brand new tab in your trading platform that says “Short Term” on it. If you aren’t a trader over at 24option but you’re interested in doing fast-paced trades, you may be intrigued by this new type of trade. Short-term trades are offered in addition to High/Low, One Touch, and Boundary trades. What are short-term trades, and how can they help you get more out of trading binary options online?
You probably are familiar with 60-second trades since many binary options online brokers offer them, including 24option. 60-second trades are just like ordinary High/Low trades, except that they have very short expiry times and your trade starts and ends within a single minute. These trades are fast-paced and exciting, and for scalpers, they can be a great way to make money. If you are really interested in 60-second trades and want more information
Now, with short-term options, 24option has expanded their line of trading products to include 2-minute and 5-minute options. These are also very fast-paced trades, but they still give you a little more time to stay in your trade. For traders who are interested in fast-paced trades but who find 60-second trades too fast, these can be a great alternative. If you are starting out with longer term trades and working your way toward 60-second trades, 2- and 5-minute trades make for great stepping stones on your way there. It is typically easier to learn how to trade with longer expiry times, even if you eventually plan to become a scalper who profits from tiny price movements.
Another great benefit of 2- and 5-minute trades is that they simply provide you with more opportunities to potentially profit in the market. When you choose a trade to participate in, you are selecting it in part based on its expiry time. What if you believe that the price of a given asset is going to be at a certain point within 5 minutes, but not in 1 minute? Let us say for example that you believe that the price of oil is rising, but you have no reason to expect it will be trading above its current level in 1 minute. Instead, you expect it to dip down briefly before retracing. Within 5 minutes, you are confident it will be trading above its current price.
In this situation, it would not make any sense to enter into a 1-minute trade, because you are not confident about where price is going within the first minute of the trade. But since you are confident that the price will rise within 5 minutes, it would make perfect sense to enter into a 5-minute trade on oil. After 5 minutes elapses, your trade goes as predicted and you make money. This is a trade you would not have been able to take at all had the expiry period not been offered to you—particularly since 24option does not offer the “Option Builder” tool for setting customized expiry times. The more choices you have for expiry periods, the better.
Tips for Trading Short Term Options
Before you jump in, here is some quick advice concerning short-term options trading. It is good to know what you are getting yourself into before you win or lose a lot of money quickly:
- If you don’t already know how to use the 24option trading platform, it is best to try a few longer-term trades first so that you do not lose money making a foolish mistake. There is already plenty of pressure when you are in a trade, and no reason to add to it and make hasty bad decisions. Once you know what you are doing, you will find the speed of short-term trades less stressful and confusing.
- Not all trading systems that work on shorter- or longer-term trades will work on 2- or 5-minute trades, so make sure you do your testing before you invest money on short-term options. The same system which works great for 15-minute expiry trades may do nothing but cost you money on 2-minute trades. A scalping system designed for 60-second trades may not work well on 5-minute trades. Scroll through historical charts of data to see if your system would have performed well with 2- or 5-minute trades before you try it live.
- Even when you do go live, demo test a few trades first. 24option offers you a demo testing account with $2,500 in virtual funds when you deposit $200 or more into your new trading account. There is no reason for you to lose a dime learning how to trade short term options when you can do your learning with virtual funds. Ultimately this is guaranteed to save you money, which means you will have more money to trade with, and you will become profitable more quickly!
Excited about the new short-term options at 24option? 24option is one of our preferred brokers. They have a reputation for quality and trust. You can read more about them in our 24option review. Registering takes only a few minutes, after which you can deposit your money and get started trading right away. It’s a good idea to explore some of the resources on 24option’s website first, though. There are eBooks, eCourses, trading videos, and other great materials to get you started on the right track. Good luck and have and fun and profitable time trading short term options!