The 60 second binary options are perhaps the most disputable from the options’ types. The quickness of trade provides traders with an opportunity to earn much in the short period of time. But a risk in such trading goes far beyond the average parameters. Let’s consider this situation in more detail.
If you have reached this chapter in the Encyclopedia, then you probably know what the binary options are. However, (just in case) we will make a little insight into defining of this financial tool.
As the term binary suggests, the issue is about the two variants: up and down
- If you think that the underlying asset’s price will go up, you buy the CALL option
- If you think that the underlying asset’s price will go down, you buy the PUT option
Seems fairly easy, isn’t it? Furthermore, unlike in the Forex or stock’s market, the binary options trader does not have to worry about the closure of a position. Binary options work with the fixed expiration times. One of such timeframes is one minute or 60 second binary options (more popular name).
60 second binary options
As the name implies, a contract of this type expires in 60 seconds. It expires, regardless of a time when the entry into the contract has occurred. In other words, if you have bought the CALL option on the EUR/USD currency pair at 13:52, then the expiration time (end time) of the option will occur at 13:53. And your profit will be 70-81% from the deposit’s amount. There are no limits for the usage of this option. So, you can close 60 deals in one hour. You can easily calculate your possible profit.
The 60 second binary options’ trading is an active rush of adrenaline too. Short term of a stake makes you following the price’s chart steadily. Your heart will aflutter many times during only one minute.
Benefits and disadvantages of 60 second binary options
As you can see, the 60 second binary options make a trading in the market dynamic and non-stop. It is both main benefit and main disadvantage of this binary options’ type. The benefit is that a trader can close many deals in the short period of time. The disadvantage is the lack of qualitative analysis for 60 seconds. Even if the clear trend is available, market’s noise (price surge on a chart) can nullify all of the trader’s efforts. It transforms trading with the 60 second binary options to the resemblance of roulette.
Trader’s emotions influence his work with the 60 second binary options substantially. The adrenaline rush, the passion and the desire to recover losses prevent a trader from the correct forming of his trading process. If you can’t hold your emotions, then using the 60 second binary options is the quickest way to lose your deposit entirely.
Another disadvantage of this binary options type is in the broker’s opportunity to manipulate with the price because the changes that occur in such a short period of time do not exceed several pips. In order to avoid this, we strongly recommend traders, who have decided to work with the 60 second binary options, to choose only reliable and verified broker.
So, is trading with 60 second binary options worth it?
There is no unambiguous answer to such question. As it has been mentioned earlier, this type of binary options has both disadvantages and benefits. Each trader has to choose a tool for himself, according to his temper, desires, and opportunities. However, if you have decided to use the 60 second binary options, we strongly recommend you to follow all the rules of capitals’ management and risks’ minimization. In addition, we recommend being very careful when using such popular, but very adventurous strategies like Martingale and Anti-Martingale.