Starting With 60 Seconds Binary Options

February 27, 2014 4:04 pm

60seconds_binary_options60 binary options – now that’s the type of activity that requires you to have it all: courage, good sense of the market, excellent analytical skills, superb mental fortitude, discipline, and last but definitely not least – a bit of luck. 60 second binary options are perfect for those of you who like to be active and want to immediately see the results of their actions. You can make hundreds of trades in one day should you choose to do so; you can make or lose a lot; you can live your life 60 seconds at a time. The decisions are all yours.

No one is there to stop you or tell you not to trade. Your capital is at your fingertips at all times and only you will decide whether to risk some of it in order to make it bigger or to just preserve its current levels and not risk it any further. 60 second binary options trading is a really fascinating field but it’s not for the faint of heart. Do you think you have what it takes to trade in such a rapid rate? Keep reading in order to find out.

60 Seconds Binary Options Basics

How do binary options work? Binary options trading is much like gambling. The difference is that in gambling you don’t have that great a chance at winning and very few things depend on you (even if you have a good strategy). With binary options, however, you have significant chances of making a profit if you know the market. If you can read charts and recognize trends, you can make quick money. That doesn’t mean that there’s no risks, but here you have a lot more control. Binary options trading is based on a guess you’re making – whether the price of an asset will be up or down at a certain future point in time.

This point can be a week from now or 60 seconds from now, but it’s predetermined before you place the trade. You realize by this point that there are huge differences between trading for a week and for 60 seconds. Binary options of the 60 second variety require you to have a bit of luck because sudden fluctuations are always possible, even during a trend. That’s why they are a risky but rewarding type of trade and require you to have nerves of steel.

The working principle is really simple – if you think the price of the asset will be up in 60 seconds, you buy a call option and if you think it will be down in 60 seconds, you buy a put option. In 60 seconds you know whether you were correct or not. The profit you make is based on a fixed percentage of the “bet” you’ve placed (usually between 60 and 70%) and, of course you get your bet returned. If you’re wrong, you lose your bet. Pretty simple stuff, but let’s give an example to make things crystal clear.

Let’s say you’re looking at Apple’s current stocks that trade for USD 100 (this is just an example – that’s not how much they actually go for right now). You believe that they will be higher in 60 seconds so you place a call trade for USD 100 with 70% potential profit. If you’re correct, you get USD 170 (your USD 100 bet and the 70% payout) and if you’re wrong, you lose your USD 100. It’s simple. Of course, unless you have significant capital it’s not a good idea to trade in the hundreds, especially not in the beginning. The potential to make money is there, but so is the likelihood that you will lose a lot of money fast.

Advantages and Disadvantages

The biggest advantage of the 60 second binaries is also the biggest disadvantage – you can trade a lot in a very little time frame. This means that you can make a lot of money fast (if you’re right in our Apple example, you get USD 70 in a minute) but you can lose a lot of your capital just as fast (if you’re wrong, you lose USD 100 in a minute). The risks are there and if you’re not careful you may fall victim of your own greed or bad luck.

Another downside is that the potential profit is smaller than the potential loss (with the Apple example you can win USD 70 but lose USD 100), which means that you need to compensate in volume, or in other words you need to win more than you lose. You need to win at least 70% of your trades in order to compensate for the losses and still have some profit, which is not always easy when even the tiniest fluctuation in price can cause you to lose.

Conclusion

If you like the fast-paced game and want to see the direct results of your actions quickly, have good market sense, nice capital, nerves of steel, and you feel lucky, then 60 second binary options might be just for you. If you don’t like the high risk, high reward game and prefer to play it safe, then you should look for other alternatives.

Where to Trade

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