Pros and Cons of 60 Second Binary Options

28 Apr 2013, 08:00

The binary options market is popular for being the fastest paced financial market. The new 60 second binary options are probably the quickest way to make profit from financial speculations. As you can easily understand from their name, they offer you the opportunity to earn money in less than a minute. You can take advantage of price fluctuations in only 60 seconds as long as you are able to make correct assumptions concerning the price direction.

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The rapidity with which they are traded made binary options popular in the first place. Up until recently, expiry times for these options for one hour or longer. Recently, the demand for shorter options became visible and now it is possible to place trades which expire in only one minute. Such short term options can indeed generate profits immediately and they have several advantages over other types of options.

Trading binary options implies the fact that you are going to make a fix profit in case you are able to predict correctly the movement of the price of an asset. If you place a trade on the outcome that you expect and this becomes reality, you make money. Trading binary options is simple and straightforward and this makes this form of trade highly popular. However, in case your money is on the other outcome, there are no winnings for you. In such a case, you lose the money you invested in that contract. Fortunately, you can’t lose more money than that. Given the nature of these trades in which you don’t actually invest in goods, they are also called over the counter investments. 

The rapidity of the 60 second option determines many new traders to start with it directly. However, there are still disadvantages of this option that you need to consider. The instant gratification might be very tempting, but trading 60 second options is also risky. Their short expiry time makes it difficult to predict exactly how a price will move. While the price of an asset can indeed be higher or lower than the initial price at the end of a day, its fluctuations are not necessarily linear. It’s hard to come up with an effective strategy that will predict what will happen in only one minute. However, if you do have a good strategy, than 60 second options are definitely a fast way of making profits.

If you master such short term strategies, trading 60 second binary options can work in your favor. You can earn serious money in a very short time and you won’t have to spend days on end trading. Most brokers offer payouts of approximately 70%. This is quite a considerable profit rate for only one minute. More than that, some brokers also allow you to start with trades of only $25, so you won’t need a high initial capital.