What are Binary Option Short Options?
Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Binary Option Short Options”
It started as 60 second trading but has now developed into an entirely new trading style for the binary options trader called Short Options. These trades are fast paced but not as wreck less as the older 60 second trading. Short Options allows the trader to pick his expiry in a time frame from when he starts his trade as opposed to a fixed time on the clock as an investor does using the Up Down method. There is an assumption that these types of trades are more gambling and guessing, but with the longer extended trading periods now up to 15 minutes in some cases this has been quashed. The argument that it’s still trading falls on the premise that the outcome is derived from market action. A miniaturized version of the markets that has its own specific quirks that need to be learned. But just like in trading, one can take advantage of mini-trends, reversals or support or resistance level price action.
Described as “tick trading” or with the slang “trading on the static”, extremely short term trades are an area that some traders venture into, but in relatively small numbers. Add to that the sharp moves in different directions which definitely don’t look so sharp when you’re looking at an hourly chart that test your mettle quickly and vigorously, and you have something for the more risk tolerant.
Theoretically it can be even more profitable than riding a single winning trade for the same amount of time.
By Barry Norman, Investors Trading Academy – ITA
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