Olymp Trade has become a top online options broker. It provides a variety of assets like cryptocurrencies, forex, stocks, indices or options.
In this article, I will discuss trading digital options, specifically their expiration. Digital options typically come with a predefined expiration date. It could be a minute or a day. And you should include the expiration in your trading.
Olymp Trade allows holding digital options opened for a duration of 1 minute up to 23 hours 59 minutes. You can set the duration on the right-side panel.
You can choose a predefined expiration time, you can enter desirable length manually or use plus/minus buttons.
Once you determine the expiration time and you have opened a position you will see it on the chart.
- Your opened trade is in the form of a red line. There are two dots at both ends of the line. One is the beginning and the other the end of your trade.
- There are two vertical lines visible on the price chart. One is dotted and described as the beginning of the trade. The other one is a continuous end of the tradeline. They are showing where the potential trade would start and end if you decide to enter a similar transaction at the present moment.
- You will also see the numbers counting down. This is the time remained to the end of a current candle. As soon as it reached 0, count down will start from the beginning, that is from 60 seconds because the duration of the candles is set for 1 minute.
A few words about trading digital options at Olymp Trade
I think the best chart type for trading options is Japanese candlesticks. It is easier to analyse and follow such a chart in comparison to other kinds like bars or area chart.
5-minute candles can give a more accurate view of price movements as opposed to less lasting candles where fluctuations are more frequent. When you get a hold of it you can, however, try trading 1-minute candles as I did in the above example.
You should think the expiration time through and include it in your option strategy. I would recommend opening positions for 5 minutes or more.
Indicators are on the platform to serve you but do not use too many. It will only unnecessarily distract your attention. Use one or two in combination. It can be the RSI, the SMA or the Bollinger Bands. They will help you to recognise the trend and its reversal.
Best of luck!
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