60 Second Binary Options
60 second binary options are a dynamic, high-risk form of trading. The shorter window means you can place more trades, arguably creating more opportunities for profit. Of course, the reality is a little more complicated. In this guide, we cover 1 minute binary options trading strategies, alongside the rewards and risks. We’ve also listed the best 60 second binary options brokers below.
60 Second Binary Options Brokers
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60 Second Binary Options Explained
1 minute binaries work in the same way as a standard binary options contract, except they expire in just 60 seconds. Traders essentially wager on whether the price of an asset will hit a certain point within the specified timeframe. The 60 second window is not unique to binary options, but it is popular with active traders seeking quick returns.
In line with standard binary options, the potential profit or loss is known prior to execution. The biggest difference, of course, is the expiration period. The shorter window means 60 second binary options trading requires a unique strategy that works, not to mention a generous risk appetite.
Trading Strategies
60 second binary options trading requires a considered, proactive approach. Having a robust strategy in place not only makes it easier to take decisions, but also helps to remove psychological pressure. Importantly, there is no one size fits all approach to 60 second binary options trading strategies, however, we have listed some of our top pointers below.
Risk Management
The basics of any good strategy is risk management and 60 seconds binary options trading is no exception. Many traders adopt the 1% rule as a starting point.
This rule states that you should not risk more than 1% of your total portfolio on a single trade. It is used to minimise losses and to ensure that traders can overcome smaller pitfalls and continue trading.
Charts
Your chart setup should be relatively straightforward. Candlestick charts are a good place to start. Set them to the 1 minute time frame. 1 hour charts are also worth utilising but we recommend working your way down to the shorter charts which will give you the most accurate data to work from.
Ideally, you want a price that is at a low point over 50 candlesticks. Be sure to mark your start and end points over the 50-candlestick period.
Support & Resistance
Levels of support and resistance can be used to identify trading signals. The theory is that the price of an asset will always return to standard levels. Therefore, levels of support and resistance are the periods between which the price is moving. Trading activity is typically high when the price moves between the set parameters. If the price goes beyond the limits in either direction, it is often best to wait until a new level appears.
Importantly, support and resistance levels can help you make better predictions since prices generally trend towards one of the lines. They can essentially be used to inform where the price will go next. They are a good place to start for all levels of experience but particularly for those new to 60 second binary options trading.
Technical Indicators
As you gain more experience, you might also want to use moving averages to inform your predictions. There are tons of technical indicators around to help you forecast price action. As a general rule, we recommend setting up support and resistance levels as well as moving averages. These can help you to see whether the price is trending up or down more easily.
The Relative Strength Index (RSI) is also worth considering. RSI gives you a number on a scale of 0-100 and indicates whether the market is overbought or oversold. When the RSI is between 0 – 30, the market is oversold. When it is between 70 – 100, it is considered overbought. Importantly, this has an impact on prices with RSI strategies generating profits from market reversals. Note, traders often set a 3 period RSI for the 60 second window. This makes it more reactive to short-term price changes.
You can also check for a bullish divergence between the RSI and the price. This means that whilst the RSI moves higher, the price drops. It is an indication of a reversal in price.
Tips for Trading 60 Seconds Binary Options
- Only risk what you can afford – as a general rule, you should not risk more than 1% of your capital on a single trade.
- Find the right broker – not all brokers offer binary options trading. Do your research and make the most of demo accounts where available.
- Use signals – utilise the free tools available to you. Signals represent market triggers and can be great indicators for price movements.
- Avoid over-trading – it can be all too easy to get carried away. If you can make $3,000 an hour, why not try for $5,000 right? Wrong. Good setups take time to develop.
- Be patient – trust in your strategy and keep a handle on your emotions.
Benefits of 1 Minute Binary Options
The key advantage of the short trading window is that you can win quickly. You can essentially make money on every price movement. The shorter window also carries greater risk which means that returns are higher relative to the day window, for example.
In addition, you can have multiple active trades within the same period. Finally, 60 second binary options are relatively straightforward assets to get your head around – they offer a simple win or lose proposition.
Risks of 1 Minute Binary Options
However, the risks aren’t to be overlooked. Binary options trading can be riskier than investing in stocks, forex or commodities. The shorter window also creates a high-pressure environment. Big decisions have to be made in quick succession.
For those new to trading, or to binary options contracts, the 60 second window probably is not the place to start. If you make an error in a longer timeframe, you have more time to figure out where you have gone wrong and most importantly, fix it. If you are trading in the shorter window and make a series of mistakes, it is much harder to come back from. Learning how to trade this specific window is key. Don’t think that you can apply your usual strategy to this unique environment.
Traders should also note that binary options trading is not offered by all brokers. So, whether you are based in the USA, UK or further afield, make sure to check they are permitted where you intend to trade.
Final Word
60 second binary options trading is a high-stakes, high-adrenaline game. To succeed you will need to be disciplined, stick to your strategy and know your limits. But whilst the risks are significant, so too are the opportunities. You could make more in an hour than day or swing traders. See our list of the top 60 second binary options brokers to get started.
FAQs
How Do I Trade 60 Second Binary Options Successfully?
Unfortunately, there is no ‘best strategy’ or secret formula for successful 60 second binary options trading. To conquer this challenging format you will require a robust strategy, nerves of steel and a healthy risk appetite.
What Is 60 Second Binary Options?
1 minute or sixty second binary options are financial contracts traded within a window of just 60 seconds. It is a fast-paced, high-risk trading scenario, not suitable for beginners.
How Do I Trade 1 Minute Binary Options?
First, you will need to find a broker that offers binary options. From there, pick your asset class, strategy and get trading. Remember to utilise demo accounts where available and ensure your risk management strategy is comprehensive.
What Is The Best 1 Minute Binary Options Strategy?
There is no one size fits all to 60 second binary options strategies. See above for a few of our tips that can help you get started. As a rule, always utilise what is available to you; signals and indicators are helpful tools.
What Is The Best Time To Trade 60 Second Binary Options?
The best time to trade is when bands are wide and the market is volatile. This provides the most opportunity to generate big returns. It is, however, also possible to make money in flat markets.