What are 60-second binary options?
- George Solotarov
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Trading binary options is a popular trading method along with stocks and Forex. Although you can choose different time frames for trading binary options, many traders prefer to trade 60-second binary options because they believe they are the most profitable. Before reading this article, you need to understand that binary options are all-or-nothing financial contracts. That is why they are called binary options: there are no other calculations. A binary option is based on a simple "yes" or "no" choice: will the asset be worth more than a certain amount at a particular time? For 60-second binary options, that moment in time comes exactly 60 seconds after the order is placed. That's why they are called 60-second binary options.
Pros and cons of 60-second binary options
Pros:
1. You can make money on the smallest price fluctuations that can occur in 60 seconds.
2. Because of the short time frame, you can make several successful trades within one hour.
3. All you have to do is analyze the chart for that day, or even a few hours, to be able to accurately predict how the price will change in the next 60 seconds.
4. it's a quick way to make big profits if you place a successful trade because the entire process takes only one minute
Although 60-second binary options have very attractive pros, they also have some cons that you should be aware of before you start trading. Here they are:
Cons:
1. You can quickly lose your entire investment if you are not careful when making trades.
2. During a long-term binary options trade, the value of the asset can fluctuate significantly, but eventually reach your desired price and make you win that trade. Whereas in a 60-second binary option, many things can go wrong as expected and you will lose that bet.
3. This strategy is considered riskier than trading binary options with a longer period.
Example of a 60-second binary option
Let's say that the EUR/USD is at 1.1256 at 15:30:30 and you think it will rise in the next 60 seconds. In that case, you select either "Up" or "Call" and buy that binary option. The 60 seconds start when you lock in that trade. Then, if the price increases by at least one point, at 15:31:30 you have won this trade. In this case, you get back your initial investment and you also get a profit that can be as high as 85% or more of your investment. But if the price of the pair did not rise at 15:31:30, you will lose your initial investment.
Or conversely, if you think the price will fall in the next 60 seconds, you choose the "Down" or "Put" option and open that option. Then, if the price declines at 3:31:30 p.m., you make a profit on that trade. But if the price is higher, you lose your bet.
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