In many binary options contracts the exit is fixed when you enter: the expiry time. That makes exit planning different from other forms of trading, because most of the decision is made before the trade starts. Some platforms also offer early closing for a changed payout. This guide covers how to plan the exit as part of the strategy.
TL;DR -- Key Takeaways
- For a standard contract, the expiry you choose is the exit decision, so it belongs in your written rules.
- Link expiry to how long your setup needs to play out and to events that could interrupt it.
- Early close, where offered, trades certainty for a reduced result; check how the amount is calculated before using it.
- Decide exit rules in advance to avoid emotional changes mid-trade.
- Test expiry choices on past data, one change at a time.
1. Expiry Is the Exit
With a standard fixed-time contract, your trade ends at the expiry you picked. The question is therefore not "when do I sell" but "how long should this idea last". If you enter a pullback trade with a ten-minute expiry and price takes twenty minutes to resume the trend, the setup was right and the exit was wrong.
Different contract types vary. Some platforms offer touch contracts, ladders or early close options; see touch, ladder and straddle option strategies. What is available depends on the broker, so check before planning around a feature.
2. Matching Expiry to the Setup
Ask three questions:
- How long does this setup usually take? Look at past examples of the same setup on your chart and measure the number of candles from signal to the move.
- What could interrupt it? Scheduled releases, session changes or a nearby level.
- What does the payout look like at this expiry? Payouts can differ by duration. See risk to reward ratio for binary options.
Write the result as a rule, for example: "Pullback setups on the 15-minute chart use expiries from two to three candles, and no trade if a release is due before expiry." See timeframe and duration strategies.
3. Early Close Features
Some brokers let you close a trade before expiry. The amount you receive is set by the platform and may be lower than the full payout when you are winning, and a partial return when you are losing. Before using early close:
- Read the broker's terms on how the early close amount is calculated.
- Compare the amount on offer with the outcomes you expect, including the chance the trade turns.
- Decide the rule in advance. Closing out of fear is a behavioural exit, not a strategy.
If the terms are unclear, do not build a plan around the feature. See broker terms and withdrawal mistakes.
4. Avoiding Emotional Exits
The urge to close early appears when a trade moves against you, or when a gain seems at risk. Reduce it by:
- Sizing the stake so one trade does not matter much. See the Risk Management Hub.
- Writing the exit rule before entering.
- Reviewing early closes in your journal to see whether they helped or hurt over many trades.
See also post-trade psychology and tilt mistakes.
5. Testing Exit Rules
Change one thing at a time. Run the same entry rule with two or three expiries over the same history and compare the win rate and net result after payout. Do not choose the best expiry from a small sample, because that is a form of tuning to noise. See overfitting a strategy warning.
Frequently Asked Questions
Can I change my expiry after entering?
Not for a standard contract. You can only close early if your platform offers it.
Is a longer expiry safer?
Not automatically. It gives the idea more time, but also more time for news or reversals.
Should I always use early close when winning?
There is no universal answer. Compare its terms with the outcomes you expect, and test the rule on a demo account.
How do I know my expiry is right?
By testing the same setup at several expiries and comparing results over enough trades.
Related Reading
- Entry Timing Strategy -- the other half of timing
- Binary Options Expiry Time Explained -- how expiry works
- Backtesting and Strategy Development -- testing rule changes
Compare brokers by available expiries: