60 Seconds Binary Options
Gone and Traded in 60 seconds! Many brokers offer 60 Seconds Options. They are basically High Low (Call/Put) options but the expiry time is only 60 seconds after you place your trade.
How to Trade 60 Seconds Options?
All you have to do is choose if the price of an asset will increase (place a Call) or decrease (place a Put) after 60 seconds. Once the 60 seconds are over, you can get 70% return or more if your prediction was right.
Although the 60 second options look very easy and lucrative, it’s not recommended to trade them if you are a beginner, since it’s very difficult to predict the price of an asset for such a short period of time – 60 seconds. You should try out options with longer expiration times and develop a strategy for trading them.
For example: Let’s say you wish to trade Crude Oil, and you think the price will increase in the next 60 seconds.
The strike (target) price is 86.950 at which you enter the market. Select the amount you want to invest, for example $100. Depending on the broker’s platform you click on “High” or “Call” and then “Buy” to place your trade.
In the image below, you can see a line in the chart at 86.950, above this line your trade is a winning one.
After 60 seconds, once the expiry time is reached, there are 3 possible outcomes:
- The price of Crude Oil is higher than the strike (target) price – so your option was In the Money (ITM), which means you’ve made a profit! Since the return was 70%, with your $100 investment you’ve made a profit of $70. The payout will be $170.
- The price of Crude Oil is lower than the strike (target) price – so your option was Out of the Money (OTM). Options that expire OTM typically have 0% return and do not offer any refund. In this case you will lose your whole investment of $100.
- The price of Crude Oil is the same as the strike (target) price – 86.950. As a result, you will bet back your investment of $100.