There are also a series of disadvantages when trading short term options as well as when trading medium term ones, and I guess that the key to success is to properly identify the binary option that suits a specific need at a specific time after taking into consideration all the advantages and disadvantages it possess, and try to differentiate them using technical and fundamental analysis.
One of the main disadvantages when trading short term binary options are:
- Risk to build overconfidence;
- Risk to over trade;
- Sometimes difficult to find the right place to enter the market because high levels of volatility.
- As when trading medium term binary options, the most important disadvantages are:
- High risk for the option to expire out of the money;
- The higher the expiration date, the higher the risk.