The option transactions always have a fixed lifetime. When you open an option for the amount and expected market direction, you must specify the time at which the option expires. At Olymp Trade the minimum option’s duration is one minute. But you have to keep in mind that there are two ways on the platform to set expiration.
In this article, I will explain in details what these two ways are and in what situations you can use them.
The specified period of time after which the option expires
When you want to open options trade, the platform allows you first to select a specific period of time after which the option will expire. You can choose this time from the drop-down list or manually enter how many minutes the trade should last. The trade will last for the exact amount of time you have set. This time is counted precisely from the moment the transaction is opened.
In the picture below, notice that the transaction opened for one minute at 15:54:12.240 expired at exactly 15:55:12.240.
This type of expiration date can be helpful if you want to use, for example, the candle colour strategy we have described. We use five-minute candles there. To cover the duration of one 5-minute candle for a trade, you need to open the trade as soon as a new candle appears.
Setting a round time for the option to expire
Sometimes we just want to close the deal at a certain time. Then, when selecting the expiry time, select “Expiration” and enter the specific time. The pictures below show this action.
A transaction opened at any time will then be closed at the exact time you have previously specified. It is therefore independent of the opening time.
You can use this type of expiration in the strategy described by us in the article: The Easy Way to Trade Candles at Olymp Trade.
Which method to choose?
As always, everything depends on many different factors. Here, above all, it depends on the strategy you use. Earlier, I have indicated 2 different strategies for two different expiration modes.
If you already have a strategy, simply choose the termination method that fits better. If in doubt, remember that at Olymp Trade you can always test everything using the virtual funds in your demo account.
All the best!
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