StockPair, one of the best binary option brokers in the world, uses two different expiry system that make the service ideal for every kind of binary options trader. This article goes through the different StockPair expiries.
1) Hourly expiration times
To invest in regular binary options, you have to predict whether an asset will rise or fall over a given period of time. For this type of binary option, StockPair uses conventional expiries of one hour or shorter. This means, when you invest in a regular binary option based on stocks, indices, currencies, or commodities, you have to predict whether the asset’s price in one hour will be higher or lower than the asset’s current price.
If you invest in an asset with a price of $100 and predict rising prices, the asset has to trade for at least $100.01 exactly one hour from now for you to win your binary option. If the asset trades lower, you will lose your option.
2) End of day, week, or month expiration times
StockPair also offers a great investment tool that gave the service its name: You can invest in two assets in relation to each other. You have to predict which asset will perform better over a given period of time. These assets use end of day, week, or month expiries. This means, you have to predict which of the two assets of a pair will outperform the other until the end of the day, the week, or the month.
Compared to most other binary option types, those expiration times can be incredibly long. An end of month expiration times can easily translate to four weeks until your binary option expires. Especially those traders having difficulty predicting price movements on short time frames will find this a helpful tool to generate more accurate predictions.
If you invest in pair option based on the EUR/USD currency pair with an end of week expiration time and predict that the Euro will outperform the US Dollar, the Euro has to gain a higher percentage or lose a lower percentage of its price compared to the US Dollar for you to win your option.
To avoid any confusion based on different time zones, StockPair displays the exact time and date on which your option will expire in the trading platform.