60 Seconds Binary Options

60 seconds binary options

Binary options offer all sorts of expiry times, from 5 minutes away to the end of the week or the end of the month. For those that want to be extremely active in the market though, there is the 60 seconds binary option. Since these options expire in one minute you can potentially do hundreds of trades a day. That means even with a small amount risked on each trade, you can make–or lose–a lot in one day.

Basics of 60 Seconds Binary Options

Like traditional binary options, if you believe an asset will be higher than the current price 60 seconds from now you’ll buy a CALL option. If believe an asset will be lower than the current price 60 seconds from now you’ll buy a PUT option. A correct assessment will land you a pre-determined payout, usually between 60 and 70% on the money you traded (plus you get the money you placed on your trade back). Choose wrong, and you lose amount you placed on the trade.

The 60 seconds starts the second you place the trade. So if you place a trade at 9:45:15 AM, your binary option expires at 9:46:15 AM, 60 seconds later.

                               Figure 1. 60 Second Binary Options 

Source: APBinary

Figure 1 shows a screenshot of some 60 seconds binary options. The payout is 70% in this case, and the Target Price is the current price. You’d click “CALL” or “PUT”, which is equivalent to selecting UP or DOWN if you think the rate will be above the Current Price in 60 seconds. The 60 seconds begins as soon as you lock in your trade. Frequently the broker will also provide some other short-term expiries as well. In this case, if you click the dropdown menu you can also select 60 Seconds, 120 Seconds or 300 Seconds.

The main advantage is that you can basically trade as much as you want. Supposedly you could make a trade every few seconds, or basically as fast as you can click your mouse. This allows you take advantage of any short-term opportunities you may see, without needing to worry about finding an expiry time that suits your timeframe. Simply click to buy a PUT or CALL and wait 60 seconds. Trade multiple assets and you could have multiple trades on at one time, all expiring within a very short timeframe. From a trading perspective 60 seconds binary options allow you capitalize on strong market moves effectively. If the EUR/USD for example is having a very strong morning, while you still need to time your entry, chances are the EUR/USD is still going to be strong 60 seconds from now. Therefore, these options let you jump into the flow of the market, and get out of the trade quickly before a major reversal occurs. That said, you’ll still need skill in order to determine when strength may be waning, warning you it is time to back off. This allows you to grab every possible opportunity, and potentially rack up some big daily gains. Disadvantages While you can trade a lot in a day with 60 seconds binary options and potentially make a lot of money, you could also lose a lot. “Over-trading” is common among new traders who want to try to catch every market move, but these aren’t likely high probability trades to win. Good set-ups often take time to develop, and therefore by using 60 seconds binary options you may be unfocused by average or poor trade set-ups, missing the good ones. The payouts on 60 seconds binary options is also commonly lower than other more traditional types of binary options, in the 60% area. This means you will need to have a very high win rate when trading. If you lose 100% of the capital you trade on losers, and only make 67% (for example) on your winners, you need to win 6 out of 10 trades to breakeven (tiny profit in this case).

All in all, 60 seconds binary options provide a load of potential, and provide a way to grab short-term opportunities. Perfectly, 60 seconds binary options should be used for just that–grabbing high probability short-term opportunities. There is a big risk of over-trading these types of binary options since there is the possibility of instant satisfaction, or if you lose the potential for “revenge trading” where you try to recoup losses. This ordinarily doesn’t end well. Lower payouts also signal that these options should be used cautiously. Over the long-run you need to win about 6 out of 10 trades to breakeven. To make a decent profit your win rate will need to be higher. That is difficult if you over-trade or trade average set-ups. As with any trade, trade quality set-ups over quantity.