All over the world people want to make money online for various reasons. The popularity of binary options as an investment instrument has been growing steadily over the years because of its simplicity. To trade binaries, you need to open an account with a binary options trading platform provider. A number of platform providers offering varied trade types have established operations over the years. The advantage of using binary options market to achieve your financial goals is that you will be able to work with a great deal of certainty as the profits you can earn and losses you might incur are known you even before you buy a contract.
Binary options in varied assets and expiry times are offered by brokers. The 60 seconds binary options have been introduced in order to cater to the needs of traders who want to be highly active in the market. In the binary options market, 60 seconds binary options appeared for the very first time on SpotOption’s white label platform in 2011. TechFinacials introduced it in the following year. The credit for introducing the 60 second options in binary trading goes to the broker TradeRush. The aim of this article is to provide you with some understanding about 60 seconds options so that you can use it to your advantage.
60 Seconds Binary Options – What Are They
60 seconds binary option refers to those binary contracts that have an expiry time of just 60 seconds. As the expiry time is very short, you can carry out hundreds of trades in a day. In a matter of 60 seconds you will know whether your prediction is right or wrong. As in the case of traditional binary options, you can purchase a Call if you believe the price of the asset will go above the strike price or a Put option if you determine that the asset’s price will be lower by the end of the expiration time of 60 seconds.
This trade type is not suited for all traders. It calls for a careful approach to managing money and development of the ability to recognize potential trading opportunities as they arise. You need to have a clear plan in place and know when to use 60 seconds options to reap substantial profits quickly.
The key benefit of using this trade type is that you can take advantage of the fast movements in the price of an asset. Markets fluctuate all the time and changes often happen almost instantaneously, especially in technology and telecommunications sectors. If you have developed the capability to sense the indications or signals and execute 60 seconds trades, you could reap profits in a short period of time.
Additionally, trading with 60 seconds binary options enables you to create momentum with your trading strategy. Even if you are unsuccessful in your trade, you’ll find out within a minute so you can learn from that mistake and then refine your strategy. These options enable you to speed up your learning curve and assess the sensitivity of certain assets to changes in the markets.
Moreover, 60 seconds binary trades enable you to create momentum. You may not be successful every time, but you will be able to learn your mistake in just a minute and refine your strategy. As a result, it helps you to reduce your learning curve and this in turn helps you to earn more profits.
Factors to be Considered When Trading 60 Seconds Binary Options
Before entering into 60 seconds trades, you need to take a few factors into consideration. First of all you should be extremely familiar with the binary options trading platform you are working on. You should never place 60 seconds option orders on a broker platform that you have never tried or test and risk your hard earned money.
Once you are familiar with the platform, you should test its efficiency. The idea is to make sure that the platform executes your trade at the expected price and exact time. This is because time is the essence of 60 seconds binary options trading. Even the smallest change in price can wipe off your investments.
Finally, you should check out the trading parameters as they form the basis of your trades. It is important that you have all the parameters thought out beforehand because you will be hard pressed for time when dealing with 60 Seconds binary option contracts.
5 Tips for Trading 60 Seconds Binary Options
#1: Follow economic trends: Multiple economic factors affect the price of financial assets. It is, therefore, important keep yourself abreast of the economic news on a daily basis.
#2: Read the news: You also need to go through general news because they also influence the financial markets. Supply and demand of commodities, stocks and currencies also impact the prices of assets.
#3: Use trading signals: Learn to recognize the relationship between the values of assets. Make use of the services of signal providers
#4: Learn some good trading strategies: A host of advanced strategies for trading 60 seconds binary options are available.
#5: Make use of Technical Analysis: This is because technical analysis is all about recognizing trends.
60 Seconds Binary Option Trading Strategies
Rapid Fire, developed by iOption, involves you making several fast investments repeatedly in small increments. Some trades end in-the-money, while some others will finish out-of-the-money. A few wins are sufficient to cover your losses.
The best time to trade 60 seconds options is when the markets are volatile. Such a market condition is often presented when high-impact news is released, by systemic market activity or during market opening.
Money management is also an important aspect to be kept in mind when trading 60 seconds binary options. You should limit your investments in the beginning and increase only after gaining some experience.
Summarizing, you need to go beyond the ability to correctly predict direction of price movement of an asset. You should not be tempted to employ the martingale technique to make up for the losses, if you happen to have three unsuccessful trades. This can badly hurt your finances. It is, therefore, important that you make informed decisions and follow the strategy that you have practiced well to ensure an acceptable measure of success.