Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
The latest trend in the extremely exciting field of binary options is the 60 second binary options. Binary options are already preferred by a lot of traders and if statistics are to be believed, the 60 second binary options have improved its popularity by many times. Because it is a relatively new option, there are many questions regarding risk, suitability, profitability and nature of 60 second binary options that investors are having. The following pointers will help in solving all those queries – 1. Comparison With 15 – 60 Minute Binary Options – An unofficial rule for any kind of trading is that the sooner you get out of the market, the lower the chances are of you losing any money. Although this isn’t true for all situations, a volatile market like that of binary options shows patterns of adhering to this rule. However, that has gone for a toss because of the 60 second binary options. You can go anywhere in 60 seconds because the time is even lesser than 15 minute and 60 minute options. There is no scope for making any error because the risk is a lot more than 15 – 60 minute options but as you know, higher the risk, higher the reward. Another thing is that with the standard trades, not only do you need to find out the right time to enter the market but also the right time to exit it. Binary Options free traders from that decision and its hassles. You just need to find your execution time and nothing else. The 60 second option further reinforces this principle. 2. Kind Of Traders Who Trade In 60 Second Option – Obviously, the scalpers will benefit greatly from these options because they make profits (or losses) from small fluctuations that occur in a relatively small period of time. The best way in which a scalper can gain is by trading on the bid-ask spread by buying at bid price and selling at the offer. The short time period exactly matches the scalpers trading style of not holding any position for a long period of time. It is also important to note that the profits scalpers will make would be rather low when you compare them to long position holders. Although if you wish to avoid such a situation, seeking assistance from binary brokers can be of great help. 3. Less Uncertainty, More Comfort – For day traders, the longer the time they hold a position, the more uncomfortable it becomes. The idea is simple – when you follow a trend, you will notice that it goes up for a while and then down and then up but less than last time and so on. The main reason for this is the time factor involved. The less the time, the less the chances are of other forces acting up. However, this factor is nullified as the time period increases because then the uncertainty level increases too. Hence, for day traders, binary options of 60 second time period are like a blessing because of the low uncertainty. 4. Marginally Higher Profits – Not only are the profits a little higher than standard trading, because of the lack of uncertainty, your profits are locked at a precise point. This greatly benefits the trader because you know where you stand and that really clears matters. 5. Trading Strategy To Follow – There are some basic strategies you could follow in 60 second binary option trading. One of them is the news based strategy. Since the time period is so short, any small news makes great ripples in your trading. Positive news would push your profits up. Also, over time, the market would realize that the news is rather insignificant, which would again plummet the market downwards. But you would already have gained 65 – 75% till then. Also, if you are trading with a large amount, the fluctuations influence you more so. However, scalpers and other day traders usually do not involve themselves with large amounts, so you don’t need to worry about this if you one of them. Whatever position you hold, in 60 seconds, the position reverses itself eventually but not fast enough for you to not have gained something. For any more information, you can visit this site about binary options.