Pros & Cons Trading 60 Second Binary Options
One of the most popular types of binary options online right now is the 60-second trade. While the 60-second binary trade is referred to as a “type” of option, if you’ve traded in other situations, you may think of it more clearly as a timeframe for a type of trade.
60 second binaries are a trade with a 1-minute expiry period. That means that if you’re looking at the charts, you’ll be looking at the 1-minute chart or a faster timeframe to spot trades. This type of binary option isn’t yet offered by all brokers but is quickly becoming one of the most common features out there due to the demand and popularity.
Which Brokers Have 60 Second Trades
- 24Option – Added 60 second options in the summer of 2012. Average of 70% returns. $24 minimum per trade. Wide selection of assets to trade
- TradeRush – One of the first US trading sites to offer 60 second options. 70% returns, only a $5 minimum per trade
- Banc De Binary – 70% returns average with wide range of assets
Not all brokers offer the 60 second options, including AnyOption. There are plenty of other trading sites who may offer 60 second trades but they either do not accept US traders, or you probably wouldn’t want to trade there anyway.
Why do so many people trade the 60 second binary option?
The main reason for this option type’s popularity is probably the notion that you could theoretically get rich quick trading it. And while that’s possible, haste is a two-edged sword; it’s also possible (far more likely, actually) that you’ll go broke quickly trading the 60-second option.
You can lose money fast. Especially if you are brand new to binary options online trading.
So, you might be asking yourself, is it possible to be profitable making these types of 1 minute trades?
Yes, certainly, but only if you’ve accumulated the experience you need and you have the right mindset and personality to deal with fast moving trades.
One of the advantages of 60-second binary options online trades is that you can profit from very small movements on the charts. You also can sometimes enter into 60-second binary trades with less money as an investment than you can for other types of trades. You can trade these for as little as $5 per trade.
Another advantage is that since you aren’t in the grade for longer than a minute, even if you’re given the option to get out early you don’t have a lot of time to second-guess yourself. Some people get more and more anxious the longer they’re in a trade, which makes them prone to stupid decisions they wouldn’t make while backtesting. If this is the case, you may do well on a fast timeframe.
The disadvantages of 60-second trades are the flip side of the advantages.
While you can profit from very small movements, you can also lose from very small movements. While you can go in risking less, you also may receive less in the form of a payoff if you win. And since you’re not going to be in the trade for very long and you’re working off of a very fast-moving chart, you have to make trading decisions on the fly. You don’t have time to think them through thoroughly; you need to be an expert at spotting the best trade setups and judging them on the spot.
Learning to trade price action on the 60 second time frame is not easy. Prices go up and down by such little increments over this time that pin pointing which way it is going takes price and a good judge of short time frame price action.
Becoming an expert trader takes time and experience, and the last thing you want to do is blow your bankroll in the process. Most traders will be more profitable by starting out with longer-term trades triggered by trade signals on longer timeframe charts. Once you become adept at what you’re doing you can work your way toward the 60-second chart if you still wish to do so.