60 second binary trading is the newest method of trading and it offers the expiration period of a minute. From the time it was introduced, this option has become too popular and there are many trading brokers who offer this trading option to their customers.
This trading option is not a good option for every trader. The trader should be careful on how he approaches the money management and should have the ability of spotting trading opportunity as they take place. With clear trading plan together with the right market conditions, the traders of 60 second options can be able to make substantial profit in the shortest period.
Before you start trading with 60 seconds options, there are few factors that you need to keep in mind. You have to be familiar with the trading platform that you are joining. It is not advised to place your money on the platform that you have never tested before.
You should start by learning how to close, to open and to adjust the trades. Afterwards, you should test the efficiency of the platform. You need to be sure that a platform is able to execute the trade at the right time and on the price you want. If you are not sure of this, even a small movement in the price can become costly and it can erode the money you have in the trading account. You should do your test using a demo account so that the money is not wasted for nothing.
Other areas that you need to consider are the parameters you use while trading and which makes the basis of the trades. You need to decide first about the assets that you wish to trade with, if it is index, commodity, currency and stock. Learn how to recognize the expected direction of the price if it will decrease or if it will increase.
After this you should decide what strike price you are going to choose or total trading size which is the amount found at a certain trading position. You need to think about all these parameters before you start to trade since it not possible to change the position if you are using 60 seconds binary options.
60 second binary trading is the fastest method that you can be able to make the profits using a trading system. However, you should also know that it is also possible to make losses faster. This is why with this trade, risk management is important. A positive aspect of this option is to trade using an increment of at least 10 dollars for every trade.
This will allow you to curb the risk in the moving markets that are much faster. A general rule is that you should not use over 2 percent of the trading account in one position at a time and this is even true if you are trading with 60 seconds options.
Before the binary options had different sorts of the expiry periods which were from 5 minutes up to the end of a week or at the end of a month. For the people who wish to be too active in the market, they should use 60 seconds binary options. Because such options expires in only a minute, a trader has the ability of doing hundreds of trades in just one day and this means that with a small amount used to trade at each time, you are able to lose or to make money every day.
To trade with 60 seconds options, it is like trading with traditional options. If you think that the price will increase, you buy call option and if you think that it will decrease, you buy put option. When you make a correct prediction, you will be able to win a payout that has been pre-determined and most of the time it is over 60 to 70 percentage of the money you traded with. When you have chosen a wrong position, you lose the amount that you had placed on a trade.
The advantage of 60 second binary trading is to be able to trade as many times as you wish. In the theory, you are able to make the trade as faster as you can click on your mouse. This makes it easy to take advantage of the short term opportunities as they are being made available.