60 second trading is a great strategy for any trader looking to make money from market trends that are short term. It’s very similar to Digital trading, but as the name implies all options close after only 60 seconds. This type of trading is based on determining whether or not an option will be lower or higher than quote price at time of expiry. It’s as simple as selecting “Below” or “Above” in regards to the quote price and the close of the options. Before you are able to trade these options you must sign up with a broker such as Banc de Swiss, Banc de Binary, or OptionBit. The following information will compare the pros and cons of 60 second binary options trading.
The most obvious benefit of these binary trades is that an asset’s value can change quickly; thus allowing you to profit in a short amount of time. Markets constantly move, so their direction can change within mere seconds. Yet the biggest advantage is these binary options can give you returns within one minute of beginning a trade.
In fact, thinking that they can achieve large returns so quickly is what draws many traders in. At the same time though, it can be very risky when traders are driven by quick returns.
When traders are serious about trading 60 second binary options, there are cons that should first be considered. The fact is that while a 60 second turnaround can be a huge benefit, it gets very difficult to speculate the direction of a value in such a short time. Actually the turnaround is almost so quick that many end up guessing the direction, which makes trading this type of binary options very similar to gambling.
On one side, binary options can be traded using very advanced trading techniques to establish your asset’s price direction. However, at the same time, in only one minute it’s difficult to use your knowledge, as the asset doesn’t have a real opportunity to react to market changes.
In the end, there are many expiration time trading methods you can use with binary options; 60 second options are only one choice. Just remember to keep in mind that regardless the expiry time you choose, always first consider the pros and cons behind that selection. Doing so will not only increase your odds of receiving a payoff, but it will also make your experience more pleasurable.