Many who trade digital options highly prefer super-short expiry periods, while others like to make use of more lengthy time periods. The ten minute expiry is among the more brief expiry periods, yet when executed, works quite different from sixty second trades. There are plenty of advantages to utilizing this time frame when trading and this strategy will help you to make the most of the option.
What many traders appreciate about the ten minute time frame is that it is short enough to allow a trade to finish in the money without too much concern over major changes in market sentiment. It is also not so long as to provide too much time when an asset price trend is taking place. When trading along with a trend, either up or down, the clock can become your enemy if you’ve selected a lengthy expiry period.
It is possible to execute several ten minute digital options trades each hour, so keep this in mind when considering your overall trade volume. As always, be on the lookout for chances to enter into more than one profitable trade based on the same batch of analysis. This strategy is one that can not only be lucrative, but can also be quite the time saver. Note that a price reversal absolutely can take place when using a ten minute expiry, so watch for any reversal signals.
When using charting tools or software, be sure to always use the 10 minute selection. Most of the charting tools used by digital options traders was originally designed for Forex traders. Charting tools such as MetaTrader can be easily used by those trading digital options, just be sure to make the appropriate selections and if needed, modifications to go along with each round of technical analysis.
Call or Put? This decision needs to be determined by the existing price movement, along with a consideration of current market sentiment. This is the foundation strategy that all new options broker traders should start out with, regardless of expiry time selection. Ten minute trades can yield plenty of profit, but you’ll need to remain alert to ever-changing market conditions. Changes can occur swiftly, especially around market opening and closing.
Feel free to use ten minute trades with other trades types as well, but make sure that the analysis completed matches the trade. Technical analysis tends to dominate when using a ten minute expiry, but don’t overlook fundamental analysis, as ten minutes is more than enough time for sentiment changes to occur.