Long Term UDOs gives you the ability to trade at a wider time frame. By taking into account the macroeconomic environment and basic fundamental indicators, you can have exposure to positions expiring from the next day up to 1 year.
If you are correct at your predictions, meaning that your position will be In-the-Money, you will be able to increase your trading account based on your long term trades.
Do you think that the predictions for the growth of Chinese economy are over-ambitious? Do you think that analysts underestimate the forecast of the quarterly results of a mobile device manufacturer? By trading with Long Term Options you can have exposure to larger time frames and take advantage of your knowledge on financial markets.
Long Term Options are similar to UDOs. You just choose the asset, the amount and the direction that you believe that the asset will move. The difference is that expiry times of assets are not on the same day. Expiry times are: end of tomorrow, end of day after tomorrow, end of week, end of month, end of quarter, and so on.
Βenefits of Long Term include:
- The primary advantage is that making a prediction is more straightforward. In times of high volatility, it isn’t easy to predict small changes of asset values. However, with the asset’s sensitivity to a market announcement or other trading signals, you can trade more successfully. By waiting longer, you give the asset time to respond according to identified trends, helping you make more lucrative trades.
- Lower risk and greater returns. The average return becomes more stable over time and you are more likely to place profitable trades, assuming that you placed your trades upon solid market analysis.
- Investors have more time to study markets and conduct more thorough analysis, in order to make professional and educated forecasts.
- Long Term is also ideal for more experienced Binary traders who prefer to benefit from their market knowledge by taking a longer term view.
A long term view gives you time to improve your trading strategy.