First debuted on SpotOption, the 60-second binary option is one of those trade types that will definitely catch your interest. Basically it is a normal Call / Put option trade but the difference comes from the fact it expires within 60 seconds. All you have to predict is whether or not after this 1 minute the asset will end lower or higher than the market price.
Which Broker Offers 60 Second Binary Options Trades?
As mentioned above OptiMarkets offers such type of binary options trading. Another great feature of this broker is that in case you are a new customer who has just signed up, you will get 150% bonus of your initial deposit.
Best Forex Brokers for United States
Other good broker you might want to give a try is TradeRush – it is also one of the first brokers that started offering 60 seconds binary trading options and they are actually one of the most recommended brokers up to this day. By signing up there you will get 500$ bonus. There are 3 important things that you need to know when it comes to 60 seconds trade:
a) This type of trade can be easily closed with status in-the-money. Of course what needs to happen here is the trader to properly predict what will happen with the asset and whether it will end on predicted side.
b) Of course there is a possibility to generate loss and this will happen if you don’t predict the end of the asset which means that you will lose your money even if there is one pip above/below the initial market price.
c) There is a third variant in which the trade can end up with at-the-money status. This will happen in case the asset ends on the same price level it has started. This can actually happen because of the short expiration time – only 60 seconds. Actually the price of the asset will only tick around for 1 minute, unless there is a huge volatility.
Trading the 60 Second Binary Option
Usually 60 second binary option will be found on binary options platforms of brokers that use the so called white label solutions from Tech Financials and SpotOptions. In case you want to try this type of trading and you have an account in any of those 2 brokers just follow those steps:
a) Start any asset trade
b) Enter the desired amount to be invested
c) If you think that that the asset will end above the initial price place call option. If you think it will end below it – place put option.
d) Start the trade by using the button
It is recommended to use this type of trading in case the asset is really volatile. Such conditions exist in the times like:
a) During high-impact nature or news trades. Remember that you have to be in the trade very early simply because the brokers will allow trades on volumes that can be matched by them while traders will be in a particular direction during trades of this kind. In case you don’t have good information regarding the current asset, then you’d better step aside.
b) In terms of extreme market volatility which is being triggered by systematic activity of markets.
c) In the first couple of minutes right after the market opens. This refers to trades on stock indices and stocks. For example Nikkei 225, the Japanese stock index represents the performance of the US indices, so you can take a look at the US markets and make your analyze.
Controversy Surrounding the 60 Second Option
Many brokers will actually tilt the scale against the trader when it comes to 60 second trade option. However, there is a high chance for this to happen in case you are about to close the deal at ‘at-the-money’ status.
The whole online trading is a really speculative business so there is no valid method or method that guarantees 100% success. There are not even patterns that you can follow in order to analyze the results.
If you want to be successful in such trade you need to know that this actually goes beyond the prediction part. It will also take a really good risk and money management. For example if you are suffering 3 repetitive losses then you will be tempted to gamble more money in order to recoup the loss.
Basically some luck and common sense should help traders get along with 60 second option.