Most binary options trades expire between five minutes and one month after their execution. Some expire up to three months later. A relatively new area of binary options trading is 60 second options. As their name implies, they expire within a single minute. As exciting as this might seem, it also poses a few notable risks.
Much of the attraction of binary options trading involves its simplicity. Each trade is essentially an educated guess on the direction in which an asset’s price will move, and where that price will end up within a specific time frame. Each trade is accompanied by a strike price (or target price) and an expiration date and time. Prior to initiating a trade, you’ll know the potential return – and thus, your profit – in the event your wager is correct (i.e. “in the money”).
There are very few U.S. binary options brokers with 60 second options. We have reviewed three brokers we’ve found to be reputable with reasonably high payouts. We’ll share them with you below.
The Role Of 60 Second Options In Your Trading Portfolio
It’s important to approach sixty second options with a balanced perspective. The action is quick-paced, and provides an opportunity to make a substantial profit in a relatively short time. But that same pace also exposes you to risk. In short, you can lose a lot of money very quickly if you lack a well-thought binary options strategy. More than a few overzealous traders have watched their bankrolls evaporate via their 60 second options trades.
- First, if you’re new to binary options trading, avoid 60 second options until you gain experience. Execute trades with longer expirations. Doing so will help you to better understand how markets and asset prices react to the minute-by-minute news cycle. It’s also a good opportunity to improve your trading strategy.
- Second, once you have decided to try 60 second options, be realistic about them. Execute a few trades per hour. Then, analyze the results – tick charts are very useful here – and try to identify the reasons trades ended in the money or out of the money. Insight comes from experience, but don’t rush to gain it.
- Third, think of sixty second binary options as a part of your larger trading activity. Avoid devoting all of your capital to them. Spread out. Diversify among asset classes and expirations. Learn about hedging, and stick to a proven binary options trading strategy.
60 Second Options: Ideal For News Junkies
If you’re a news junkie, you probably absorb information throughout the day, looking for details that will give you an edge in your preferred asset classes. 60 second binary options will seem like a windfall. Here again, be wary. Even traders who are keenly familiar with their chosen assets and markets can find themselves in the red after executing several trades in quick succession.
How To Profit When Trading 60 Second Binary Options
Thus far, we’ve tried to underscore the risks involved with trading sixty second options. Realize our goal is not to discourage you from taking advantage of them. As noted earlier, they offer a unique opportunity to make a quick profit. Instead, we hope to make clear that these trades are unsuitable for beginners, and require a careful approach honed by a sound trading strategy.
You should be using a live charting service as you initiate trades. It will provide the data you’ll need to monitor trends in volume, a key factor in successfully trading 60 second options.
We also mentioned earlier the importance of using tick charts to track and analyze your trades. Don’t underestimate the value of looking at past trades to gain insight that can be used to make profitable wagers in the future.
Don’t trade with your mortgage payment or grocery money. Sixty second options are not like mutual funds. You can lose money, regardless of the amount of research you do. The markets are unemotional and unforgiving.
Top Binary Options Brokers With 60 Second Options
The field of US binary options brokers that offer sixty second options is still relatively small. This type of trade has become very popular recently, and the majority of trading houses have yet to catch up to the trend. Having said that, the modest list of trustworthy brokers we recommend (see below) is bound to grow in the near future. So, check back periodically for updates.
- Banc de Binary – They are one of the few reputable binary options trading houses that offer 60 second options (four currency pairs and two stocks: Apple and Google). The current minimum for this type of trade is $5; the maximum is $100. And the average return is 70%. In addition, Banc de Binary will set up a demo account for you when you deposit $500 (the minimum). You can use this account to practice executing trades and grow accustomed to the interface of the trading platform. Visit Banc de Binary today to register your account and take advantage of a 50% trading bonus.
- 24Option – They recently announced the addition of 60 second binary options to their list of trade types. Their offerings in this areas are limited, but are expected to expand. 24Option has built a solid reputation among traders by offering binary options in several commodities, currency pairs, indices, and stocks. They also offer high returns on short-term trades, often climbing up to 88% payout on a successful trade. If you like variety in your trading, you’ll enjoy their numerous instrument types, which include high/lows, one touch, boundaries, and high-yield options. Visit 24Option.com and create your account to get started.
- TradeRush – TradeRush has also begun to offer sixty second binary options. Unfortunately, like Ikko Trader, their list of trades in this area is limited to three currency pairs. This will likely change down the road. TradeRush provides access to several trading options, including one touch, high/lows, Options Builder, and of course, 60 second options. You’ll also find an impressive selection of stocks, commodities, and currency pairs. Visit TradeRush, create your account, and take a look at their daily Market Review. You can start trading as soon as you make a deposit.
The list of US binary options brokers with 60 second options is bound to grow. This area is thriving. Get in early by visiting the four sites profiled above.