60 Second Binary Options Explained
The most common and also one of the most exciting way to trade is the 60 seconds options. this 60-seconds option is a High/Low option in which the options expires in 60 seconds after the options was opened. This is the fastest option there is and the trader in general sits and waits for it to finish. This is the exciting part as you know if you are in the money within a minute,
It is how ever also one of the harder one to master and not many are able, on a consistent basis, to make a profit. . .
60 second Option Components
It is the foundation of trading binary option and as such the process is pretty intuitive.
- You select the asset to be traded. In general this will be for the 60 seconds the currencies as the assets need to have enough volatility. Brokers in general do not allow here the stocks indices and for sure not all commodities as all too often the assets in these classes do not have enough movement to be relevant for 60 seconds.
- you select the amount you are willing to put on this options , as i mention in the “money management” section , do not put more than 5% of your entire funds in order to be not too exposed, in general i would suggest to trade with smaller amounts on this options due to the fact that is very risky.
- Then you select the direction you assume the market will go in the next 60 seconds. since here you in general cannot trade on anything but the charts make sure you use a brokerage that has good charting or open charts on the side to assist you with making the decision
Some platforms call it “Short Term” on a Tech Financials platform (24Option), and on other platforms it is simply called “60 seconds” Like the SpotOption platform (Banc de Binary) and the BX8 of leverate (BOI).
Make sure you have all the information you require to make the decision , this also means that you should see the rates of the options and the payout so you know before you even open the option you know what your profit will be if you are in the money.
Click on the chosen option (either HIGH or LOW) depending on where you expect the asset to end up at the end of 60 seconds. A new page displays showing the trade parameters as shown above. Enter the investment amount to view the rate of return, and then click on BUY. The trade is initiated and ends in exactly 60 seconds.
There are 3 different outcomes possible in the 60 seconds option.
- The asset may end up higher than the market price.
- The asset may end up lower than market price.
- The trade may end with the asset price staying exactly the same as the rate at which you opened the trade, in which case you should see this as a trade that does not have any outcome and thus you as the trader, will receive the invested amount returned to your account as no profit or loss made.
Most platform will show you a visual representation of the trade and whether you are in the money or out of the money in a chart format. This is what also keeps it exciting as you see the charts jumping and keep you locked to the screen for the duration of the trade, in this case 60 seconds.
60 seconds trading Conclusion
Because of the short time span of this trade and the volatility of the assets available for the sixty seconds trades, it is very hard to accurately and with confidence predict where the trade will end up. You could be in the money for over 50 seconds and in the last couple of seconds the rates reverses resulting in a loss, of course this also happens vice versa. Some brokers are actually manipulating the rates that the above written scenario will results more often in a loss, we of course do not promote any broker that uses these false tactics.
So in order to be profitable in this format of trading you have to follow the trend , as they say the trend is your friend and make sure you don’t invest more than 5% of your entire funds to make sure you have a not overly exposed money management.
It is without any doubts one of the most exciting ways of trading and this is partly because of the inherent risks involved. Be informed, only work with reputable brokers that are transparent and don’t invest too much money in every trade.