A relatively new binary options trading feature available on many binary option trading platforms is 60 Second Binary Options. The 60 second option is similar to the standard binary option except for two key aspects. The investment amount is as low as $5.00 per trade and the option expires in 60 seconds instead of the more standard 15 to 60 minute time frame.
60 second binary options brokers
SpotOption first offered 60 Second Binary Options late last year and the feature is now standard on all of their brands including Redwood Options and Banc De Binary. Earlier this year TechFinancials added their own version to their 24option brand. In October of 2012 Tradologic introduced the feature on the XPMarkets platform. We recently prepared a 60 Second Binary Options review comparing the feature on the different platforms.
There are many different types of 60 second binary options trading strategies. It can be a great benefit to choose a broker that offers their own trading strategies and have account managers that can help you implement these strategies.
60 Second Binary Options and Day Trading
Traders who are scalpers would benefit greatly utilizing this feature. The classical scalper would make quick profits by profiting on the bid-ask spread. They would attempt to buy the stock at or near the bid price and sell at the offer. These round trip trades would occur within an extremely short time frame of minutes or even seconds. Scalpers are also traders who generally take quick profits and hold positions for short periods of time. The profits are usually much smaller than those of long term traders as the scalper will close a position after making only a few pennies on a particular trade.
As a day trader I always preferred this trading style. My trading signals generally lasted for a couple of minutes at best. The longer I was in a position the more uncomfortable I was. Markets generally don’t move in a direct line. If a market is in an upward trend it goes up and down up some more and down a little less than up again etc. Even if you are confidently charting a trend and feel pretty certain that over a certain period of time it will continue in the direction of the trend, as the time of the trend increases many different market factors can intervene to break this trend. This causes greater uncertainty over time. In a short time frame the reasons you entered the position are more likely to hold. With a standard trade one needs extreme discipline to not only enter the trade at the right time, but to exit the trade before being subject to greater market uncertainty. Binary Options remove this factor from the trade. A trader need only determine at what point to execute the trade. The 60 second option limits the amount of time uncertainty and locks in a specific profit for the trader, which is generally far higher than he could secure in a standard trade.
The benefits of 60 Second Binary Options are numerous. They allow you to take advantage of a very precise buying signal without being subject to more uncertain longer term market uncertainty. In a standard trade of such a short time period, a trader would make only a small profit as trading instruments don’t fluctuate that much in such a time frame. With the 60 Second options a trader can make 65%-75% on the trade.