Setting the Expiration Time Based on Economic Releases
Setting the expiration time for your binary trading is as important as to know the price moving direction. The expiration date will define if you end on the money or not at your expiration time. There are hundreds of strategies with its own expiration time. Understanding that the price is a reflection of the social, political, and economic situation helps the trader to set their trading expiration date base on the expected economic release when they have information about it, which can give them an edge selecting to buy a call or a put accordingly to his fundamental analysis.
What is an Economic Release?
An economic release is an official report made public by the government and financial corporations about the country or the company financial and economic situation for the present moment and the previous period. Additionally, this report usually offers a general image of the economic conditions and generally, the agencies forecast the financial expectation for the next period. The economic releases produce immediate effects on the price assets and the market.
Benefits of Setting the Expiration time Based on Economic Releases
•The economic release most of the time report expected results. Therefore, those who follow the economics news or information, have an edge by knowing it
•The release dates are set for weeks and even months in advance. This can allow traders to invest more money for that assets and increase its net revenue
•Selecting fixed dates decreases your likelihood to over trade, helping you to keep your money management plan.
How to set the Expiration Time Based on Economic Releases
•The report dates for the economic release are available on the economic calendar; you need to go over it and select the dates that work best for you. On the other hand, if you are interested in a particular asset, do your research about the historical impact of those releases and select the one that might produce your expected results and trade accordingly.
•Be sure the fundamental and technical analysis shows the same outcome for your desired assets and buy a call or a put for them based on your information.
•Set the Expiration Time Based on Economic Releases and forget about it. Do not over trade or change your trading strategy, unless you had misread the information and failed to recognize the market signs and the asset’s price movement direction.
Importance of setting the expiration Time
The expiration time is critical for you to be on the money, the strategy and technical analysis will work only for a particular period. Therefore, you must set the right expiration time before gathering data and doing your analysis.
The economic information discloses during the economic release will have an impact on the price movement, if you have reliable information about it; it will maximize your odds to be on the money at the expiration date. Consequently, you should set expiration date based on economic releases, each time you have useful information, which let you anticipate the asset price..