Despite the name, 60 Second binary options trades are not always limited to only one minute. Today, many brokers are now offering 30 and 120 second options as well. The appeal of this type of trade lies in the ability to generate fast profits. However, the potential of fast losses also exits. Knowing when to select this trade type and how to properly execute it is extremely important.
There are several different types of price action that can be paired with these trades. The most profitable is going to be a price trend. When trading binary options there exists the potential to profit from either upward or downward price movement, so the direction of the trend is not important. What is important is being able to spot the trend direction and take action while it remains in place. When trading with short expiry periods, short-term trends can be fully taken advantage of.
There are no minimums or maximums in regard to how many of these trades much be executed. It is possible to opt for just one, or to enter into several based upon what you know about the current price action. 60 Second trades offer the same return rates as any other trade type and they work just the same as the basic Put or Call trades in that they only require you to forecast whether the price of the asset is going to be higher or lower than the entry price when the trade expires.
For the novice trader that has yet to master complex technical analysis methods, basic charts and market news can lead the way. Within each binary options platform lies a price chart that will show both the current and past price movement. This chart will clearly display price direction and will reveal how the price has changed over a period of time. Market news can easily be accessed online at no cost. The biggest market movers of the day will quickly point you in the direction of the best opportunities.
Be sure to pair your expiry time selection with the current price action. For example, when trading with an asset that is volatile, a 30 second expiry is likely to be a wise selection. One of the benefits of rapid-fire trading is that the expiry period allows very little time for any serious change in investor sentiment. Above all, investor sentiment is what drives asset prices. As feelings towards and asset change, so does the price of the asset.
It’s important to remember that 60 Second trades are not always the right selection. Since they do present the possibility of fast losses, you’ll want to only use them when market conditions are optimal for fast trading. Do not be afraid of using smaller investment amounts with these trades, particularly during times when asset prices are volatile. One of the best ways to control risk when trading binary options is to set limits on investment amounts. Small profits can add up to substantial earnings over time.