What is a “Long-Term Option”?
Basically, trading long-term options is the same as trading “classic” Binary Options. The difference is that with long-term options the expiration time is much longer, it can be at the end of the current trading day, or can be extended up to the end of the current month or even longer.
How to trade a “Long-Term Option”?
1. Expiration time
After the selection of your desired underlying asset, you can then select your desired expiration time from a predefined list. In contrast to “classic” Binary Options, you can give the price more time to develop in your direction.
2. Amount of Investment
Enter the amount you are willing to invest.
3. Call or Put
Finally, you have to answer the question for yourself whether you think that the price for the selected underlying asset will be higher or lower at the expiration time than it is currently. With a Call Option, you expect the price to increase and with a Put Option, you expect the price to fall.
You have determined all of the factors and can now complete your Binary Options trade order.
How is the outcome determined?
At your selected expiration time, it will be automatically checked if your prediction was correct. The actual price at the time of expiry will be taken and compared with the price of the asset when the option was opened.
A correct prediction leads to the reimbursement of your initial investment plus the agreed upon payout. An incorrect prediction leads to the loss of the initial investment. In the event that the opening and expiry prices are the same, your initial investment will be refunded.