60 second binary options are for traders who want to be very active in the market and see results quickly. Since this option expires in one minute, you can potentially make hundreds of trades per day.
As with traditional binary options, if you believe the asset will be higher than the current price 60 seconds from now, you will buy a call option. If you believe the asset will be lower than the current price 60 seconds from now, you will buy a put option. A good estimate will give you a fixed payout, usually between 60 and 70% on the money you trade (plus you get the money you put on your trade back). Choose the wrong one, and you lose the amount you put on the trade.
60 seconds starts the second you place a trade. Therefore, if you make a trade at 9:45:15 AM, your binary option will expire at 9:46:15 AM, 60 seconds later.
Figure 1. 60 Second Binary Options
Source: EasyXP
Figure 1 shows screenshots of some 60 second binary options. The payout is 67% in this case, and the Target Price is the current price. You will click “High” or “Low” (not shown) which is equivalent to choosing a Call or Put if you think the rate will be above the Target Price in 60 seconds. The 60 seconds start as soon as you lock your trade. Often the broker will also provide some other short-term expeditions as well. In this case, if you click the drop-down menu, you can also choose 60 Seconds, 120 Seconds or 300 Seconds.
Trade 60 Second Binary Options With This Broker
Advantage
The main advantage is that you can trade as much as you want. In theory you can make a trade every few seconds, or basically as fast as you can click your mouse. This allows you to take advantage of short-term opportunities that you may see, without having to worry about finding an expiration that fits your time frame. Just click to buy put or call and wait for 60 seconds. Trade multiple assets and you can have multiple trades at a time, all closing in a very short period of time.
From a trading perspective 60 second binary options allow you to effectively take advantage of strong market moves. If EUR/USD for example had a very strong morning, while you still need to time your entry, chances are EUR/USD will still be strong 60 seconds from now. Therefore, this option allows you to jump into the market flow, and exit the trade quickly before a major reversal occurs. That said, you still need the skill to determine when strength might be waning, warning you it’s time to back off.
This allows you to seize every possible opportunity, and potentially grab some big daily profits.
Weakness
While you can trade a lot in a day with 60 second binary options and potentially make a lot of money, you can also lose a lot. “Trading more” is common among new traders who want to try every market move, but this is unlikely to be a high probability trade to win. A good set-up often takes time to develop, and so by using 60 second binary options, you may be distracted by mediocre or less-than-good trading set-ups, missing good ones.
Payouts in 60 second binary options are also lower than other types of binary options, in the region of 60%. This means you need to have a very high win rate when trading. If you lose 100% of the capital you trade with losers, and only make 67% (for example) on your winners, you need to win 6 out of 10 trades to break even (a small profit in this case).
Final Word
60 second binary options provide loads of potential, and provide a way to grab short-term opportunities. Ideally, 60 second binary options should be used to grab high short-term opportunities. There is a big risk in trading this type of binary options because there is a possibility of instant gratification, or if you lose the potential for “revenge trading” where you try to recoup losses. This usually does not end well. The lower payout also signals that this option should be used with caution. Over the long term you need to win around 6 out of 10 trades to break even. To make a good profit, your win rate needs to be higher. That is difficult if you over-trade or trade set-up is mediocre. As with any trade,