Binary options are truly exotic, offering some interesting speculative methods that wouldn’t normally apply. One of these is the fast-paced 60 second binary options.
Main Steps To Follow To Trade 60 Seconds Binary Options
- Step #1: Create a profitable strategy
- Step #2: Pick a suitable broker
- Step #3: Open a trading account
- Step #4: Choosing the best asset to trade
- Step #5: Placing the 60 seconds binary trade
Let this be a tutorial guide on everything, including around 60 seconds of binary options trading, covering the many strategies involved and how to get started.
(Risk warning: You capital can be at risk)
What Are 60 Seconds Binary Options?
60 seconds binary options are self-explanatory: binary options with an expiration time of 60 seconds. They fall under the ‘turbo options’ category with expiration periods from five seconds to five minutes.
The high/low, call/put, or up/down is the simplest way to trade this binary option. In this option, traders bet whether an asset will be higher or lower than the strike price within the next minute. 60-second options offer slightly higher payoffs (up to 80%) than their traditional counterparts.
Of course, some brokers provide slightly more complex 60 seconds options like touch/no touch, in/out, and ladder. These binary options are available for financial assets like forex, stocks, indices, and commodities.
The Pros of 60 Seconds Binary Options
As expected, these options offer a fast realization of profits, assuming the trader has successfully predicted the price movement within the time limit.
It allows traders to trade more frequently than other long-form binary options. Hence, the 60-second style best suits short-term or scalping traders comfortable entering many positions throughout the day.
Short-term traders generally avoid the uncertainty of holding positions for extended periods.
These types of options also have an element of excitement that entices these traders.
Finally, as with other binary options, 60-second options provide a capped downside regardless of market conditions.
The Cons of 60 Seconds Binary Options
The most obvious disadvantage is that 60 seconds binary options promote overtrading. Quantity rarely correlates to quantity in any online trading environment. The fast-paced nature means traders must make informed decisions at the drop of a hat.
Sadly, human error will always prevail in such scenarios. With mounting losses, traders can easily over-trade in revenge. Over-trading also leads to a ‘fear of missing out’ and emotional stress.
Low time frames for these options depict the highest market volatility, which is hard to predict or observe.
Lastly, 60-second options have the same problem as binary options: the payout is lower than 100% of your investment. Thus, traders need a high win rate to compensate for their losses. For instance, with a 60% payout, you’ll need to win six out of ten traders just to break even.
- Fast realization of profits
- Frequent trading opportunities
- Excitement
- Capped downside risks
- Accessibility to various assets
- Promotes overtrading
- Potential for human error
- High market volatility
- Lower payout percentages
- Need for a high win rate
How to Start with 60 Seconds Binary Options
Choosing a suitable strategy is the main hurdle for binary options (more on this later) before going into live trading. Yet, it’s the most important stage and covers the bulk of the journey.
Naturally, many traders may have decided on the broker given that they needed one in their strategies’ demo account and testing phase.
Otherwise, here are two brokers that binary options participants can consider.
1. Picking a Suitable Broker
- Welcomes international clients
- Offers high payouts: 90% – 97%+
- Professional-grade trading platform
- Swift deposit process
- Enables Social Trading
- Provides free bonus incentives
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
- Welcomes international clients
- Offers high payouts: 90% – 97%+
- Professional-grade trading platform
- Swift deposit process
- Enables Social Trading
- Provides free bonus incentives
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
Pocket Option
Pocket Option is among the go-to binary options providers, founded in 2017. It’s an offshore broker regulated by the Mwali International Services Authority. Pocket Option serves over ten million customers in more than 95 nations. The broker’s options expire in five seconds to four hours.
Pocket Option is popular because of the broker’s attractive payout rate, ranging from 80% to 218% of the bet amount depending on the type of binary options and traded asset. Users can speculate in over 100 symbols across currencies, crypto, shares, commodities, and indices for a low $5.
Pocket Option is also cost-effective in its payment methods since no commissions apply. You can fund and withdraw using crypto, mobile, bank, and e-wallet options.
Another unique aspect of Pocket Option is social trading, where users can earn passively by automatically copying the binary options trades of successful traders.
Quotex
The next option is Quotex, a slightly newer offshore name than Pocket Option, which was first launched in 2019. Despite this recency, this Seychelles-register broker describes itself as an ‘Innovation Platform for Digital Asset Trading.’
Quotex offers various binary options in over 410 individual markets across stocks, forex, commodities, and indices. The broker requires a $10 minimum deposit and offers a maximum profit per trade of 98%.
Users can fund and deposit with zero-fee methods like VISA/Mastercard, Perfect Money, wire transfer, Bitcoin, and Ethereum. What’s unique about Quotex compared to other binary options platforms is the account currencies it provides (13): USD, EUR, GBP, INR, JPY, MYR, IDR, RUB, BRL, NGN, THB, VND, and UAH.
Check out our full trading video on 60 second binary options trading:
(Risk warning: You capital can be at risk)
2. Creating a Trading Account
After deciding on the broker to use, it’s time to create an account with them. This process is straightforward and relatively the same across the board. Once you’ve located the account opening option on the broker’s website:
- Fill in your personal information, like full name, email address, nationality, and other pertinent details requested by the binary options trading platform.
- Next, complete the verification process by submitting the documents to prove your identity, usually your original ID card/book and proof of address. Brokers tend to approve these within a day, assuming they are sufficient.
- The next step is to agree to the broker’s standard terms and conditions, including legal agreements.
- Finally, traders should fund their accounts at this stage. Although many payment methods are available, it’s best to avoid those linked to a bank as they are slower and incur the most fees.
This trading video is perfect for beginners who want to be walked through the best binary options trading strategy using 60 seconds binary options:
(Risk warning: Your capital can be at risk)
3. Choosing the Best Asset To Trade
Binary options offer access to many traded markets. Yet, given the quick nature of 60 seconds, traders should limit their watchlist to assets with deep liquidity. These are the most popular assets in stocks, forex, commodities, etc., and they are more stable in price movements.
4. Placing the Trade
Finally, the moment of truth. Binary options traders should carefully review all the order details attached to the market they wish to trade.
They should ensure the order has the right symbol, expiry time, investment stake, and potential payout.
Finally, confirm that you choose the market direction before clicking the ‘LOWER’ or ‘HIGHER’ tab.
Check out one of my 60 second trading sessions and the strategy I used:
(Risk warning: Your capital can be at risk)
Best 60 Seconds Binary Options Trading Strategies
It goes without saying that traders must master a strategy before trading 60 seconds binary options in a live setting. The key element of any trading system of this quick nature is the use of low time frames, usually 1M (one minute) or less.
The 1M or less chart reference offers the most detailed market action for every minute necessary for speculators to make trading decisions.
Trend Trading
Trading with the trend is the bread-and-butter way of trading any asset. It’s more advantageous on lower time frames since traders can capitalize quickly before the trend changes. There are several ways to trade with the trend.
Trend lines: the idea is to look for moments where the price ‘respects’ the trend line (or doesn’t exceed the boundary). Generally, a trend is valid with at least three touches.
So, traders can seek for moments after this confirmation, ensuring that the market doesn’t exceed the line (which suggests a potential reversal). This is where they can place a ‘call’ (buy) or ‘put’ (sell) binary trade.
One way to confirm is to look for price action patterns like pin bars or other formations in which the candle wick points in the other direction and the candle body is small.
Moving averages (MAs) are the standard technical indicators for trend trading. Traders observe whether the price is above the MA (suggesting an uptrend) or below the MA (implying a downtrend). Binary options traders can use moving averages to form a bias and an additional technique like trend lines as their entry trigger.
Relative Strength Index (RSI): Although the RSI is a momentum indicator, it is useful for confirming a trend like the MAs. The ‘overbought’ zone represents the likelihood of the price continuing to rise. Meanwhile, the ‘oversold’ zone suggests the potential for the market to trend lower.
Reversal Trading
Reversal trading is the opposite of trend trading. It uses similar tools to those that traders observe for the latter:
Trend lines: As mentioned earlier, a trend is generally intact if the price doesn’t step outside the line. The first sign of a trend change or reversal is when the market exceeds the line.
Relative Strength Index: traders can use the RSI in two ways. Although overbought/oversold conditions suggest momentum will likely continue in a certain direction, it can also imply a retracement.
This happens when the RSI line dips below the 70 mark (overbought) after entering that zone or goes above the 30 mark (oversold) after entering that zone.
Finally, another trick with the RSI is to look for divergence, where the high-low structure of the price and the indicator show a mismatch.
Support and resistance: Support levels act as the ‘floor’ while resistance levels act as the ‘ceiling’ for price movements. Multiple touches for either zone often suggest that the market could not breach it, meaning the price will likely move in the other direction.
Support and resistance are something that traders can combine with all the techniques already mentioned.
Breakout Trading
Breakout trading is a method of participating in a binary options trade when an asset’s price forcefully ‘breaks out’ of a defined level. The RSI is a useful indicator for this trading style since it confirms momentum. Traders will want to enter when the momentum is high (in overbought or oversold).
There are a few ways to identify breakouts:
Channels: Here, traders plot support and resistance levels across a range-bound or consolidating market. Breakouts often occur when the price ‘bounces off’ between obvious support and resistance. It is expected to eventually breach either of these lines, where binary options traders can enter depending on the breakout direction.
Trend lines: A breakout may happen if the price breaches the boundary of a trend line.
Chart patterns: There are many formations of patterns dedicated to trading breakouts like triangles, flags, double tops/bottom, head and shoulders.
News events: It’s common for a news release to catalyze a breakout. Market consolidation occurs as the market anticipates the news event’s outcome. The outcome of the breakout depends on the release’s impact.
News Trading
Trading the news suits the fast-paced, volatile nature of 60-second binary options. Many traders only trade the news, focusing on those that most likely produce the strongest chart movements. For instance, announcements around interest rates in forex are always highly anticipated.
News trading is about anticipation (through alerts, research, etc.) and quick reaction, incorporating all the strategies mentioned earlier. Generally, a bad outcome means ‘shorting’ or selling opportunities; the opposite is true for a good outcome.
Yet, things are sometimes more complicated. A common theme with many news releases is ‘buying the rumor, selling the news.’ This means the market tends toward the expected result for the upcoming news (the ‘rumor’). When said event finally occurs, there is nothing else to anticipate, resulting in the price moving in the opposite direction.
A clever, popular technique binary options speculators use to capitalize on any news outcome is the ‘straddle.’ It’s a strategy with a non-directional basis, where you have a range with a ‘buy’ order placed on one level and a ‘sell’ order placed on the other.
The hope is for the market to trade on either side after confirmation that it will likely continue in a certain direction. Some brokers offer a ‘boundary’ or ‘range’ type of 60 seconds binary options that may suit the straddle.
Conclusion
All in all, 60 seconds binary options are one of the more experimental options unsuitable for all traders. Fortunately, many find it easier to trade other binary options with longer expiry times. These come with less emotional stress and a slower market pace.
Still, binary options are generally the trickiest trading forms that require the most skilled to be successful. One should always consider the financial risks involved and only invest money they can afford to lose.
(Risk warning: Your capital can be at risk)
Most commonly asked questions about 60 second binary options trading:
Are 60 seconds binary options profitable?
Like any speculative trading, these options have profiting potential with the right skills, strategies, experience, and risk management.
What is the best strategy for 1-minute trading?
There is no right or wrong trading strategy for binary options. It is a matter of discretion or individual preference.
Should you trade 60 seconds binary options?
It depends. Generally, these options are challenging for the average trader and only appeal to experienced short-term traders.
Are 60 seconds binary options legal?
Yes, these options are permitted in regions that allow binary options. However, many countries have banned this type of trading.
What assets can I trade with 60 seconds binary options?
You can trade various financial assets like forex, stocks, indices, and commodities using 60 seconds binary options.
How do 60 seconds binary options work?
These options involve betting whether an asset’s price will be higher or lower than the strike price within the next minute, offering fast-paced trading opportunities.
