60 Second Options
If it’s short-term binary options that you’re looking for, look no further than 60 Second options. These trades are open for only one minute, allowing traders to cash in on brief asset price trends, market volatility, and short spurts of asset price increases and decreases. The return rates associated with these trades are just as high as any other trade type, with the only difference between these options and basic Put or Call options being the reduced expiry period. Knowing how to use these trades to your advantage is a must.
There was a time when one minute was the only expiry period that was provided with this type of trade. Today, some brokers such as 24option are including additional selections such as 30 seconds and 120 seconds. These additional time-frames can benefit traders, as they provide more variety for pairing the asset price movement with the expiry that is most suitable. One of the keys to trading for profit lies in the ability to select the best possible expiry time period, so the more variety, the better.
There are several strategies that apply directly to trades that have brief expiration times. Among the most effective are strategies that incorporate trend trading. Asset price trends are the most profitable type of price action when trading binary options. Since traders can profit from either upward or downward price movement, there will be plenty of profit opportunities. There are also strategies for earning from volatile price movement via the use of shorter contract periods.
Each trading platform varies, but traders should not expect to find options features such as Sell (Buy Me Out), Rollover, or Double Up being made available with sixty-second trades. The expiry is so short that it simply does not allow enough time for the proper use of these extra features. If Double Up is not available and a solid price trend is in place, traders are free to enter into successive trade contracts. There should be no limit on the number of trades that can be executed.
Many brokers have set their minimum investment amount in connection with this trade type quite low. Dependent upon the broker you select, it may be possible to trade with as little as $5 per trade. Reduced investment amounts allow for a higher level of risk control. They can also be factored into a solid and controlled money management strategy. Clearly, $5 trades are not going to make you a millionaire overnight. However, they can be used during times when market prices are volatile and the upcoming price movement is not extremely clear.
The only drawback of selecting fast trades is the potential for fast losses. There is no way to win 100% of your trades, but the good news is that you need not win all of them in order to be earning money. Human emotion does play a role in trading and could cause some issues if you allow it to. It’s important to remain rational and stick to your investment plan when trading quickly. If proper analysis is being completed and emotion is kept in check, these fast-running trades should not be problematic.
The creation of super-short expiry periods changed the binary options industry for the better. Prior to their creation traders were stuck with longer expiry periods that often left them at the mercy of ever changing market conditions. Traders were also tied to their computer for extended periods of time, watching to see how their selected assets were performing. 60 Second options are not always the best selection, but they are an excellent option to have access to when market conditions are optimal for short-term contracts.