Been trading for a while now and noticed some platforms offer different option types. American ones can be exercised anytime while European only at expiration.
Does this difference actually matter for short term trades? Or am I overthinking it?
Mostly do quick trades on mobile so wondering if I should pay attention to this.
Binary options auto-expire at set times. You can’t choose when to exercise them. Focus on execution speed and market conditions.
Short-term trades? This won’t matter at all. Most binary options expire worthless or ITM anyway - you can’t exercise them early regardless. The difference only shows up on longer positions where you’d want to bail early to lock in profits. Since you’re doing quick mobile trades, just focus on timing and reading market direction. Your platform’s execution speed and spreads will kill your profits way faster than worrying about option types.
American options give flexibility but don’t matter much for quick trades.
I was confused about this too after losing money on crypto.
It doesn’t matter for binary options - they have fixed expiration times anyway. I wasted $200 trying to find early exits on a platform that didn’t even offer them.
Bad internet killed me more than anything else. Trades would drop mid-execution. Get your connection sorted first.
For quick mobile trades, this difference doesn’t really matter. Binary options work the same way across platforms regardless of type.
The difference only matters with traditional options if you want early exit strategies. But you’re doing short-term trades anyway, so you’ll probably hold until expiration.
Platform reliability and low spreads are way more important for your success than option types.