Binary options offer all sorts of expiry times, from five min’s away to the end of the week or the end of the year. For those that want to be extremely active in the market though, there is the 1 minute binary option. Since these options expire in 60 seconds you can potentially do hundreds of trades per day. That means even with a small amount risked on each trade, you can make–or lose–a lot in 1 day. check out: Millionaire blueprint
60 Seconds Binary Options Basics
Like traditional binary options, if you believe an asset will be higher than the current price one minute from now you will buy a call option. If believe an asset will be lower than the current price one minute from now you will buy a put option. A correct assessment will land you a pre-determined payout, usually between 60 & 75% on the money you traded (plus you get the cash you placed on your trade back). Select wrong, and you lose amount you placed on the trade.
The one minute starts the second you place the trade. So if you place a trade at 8:45:15 AM, your binary option expires at 10:46:15 AM, 1 minute later.
Figure 1. One minute Binary Options
Figure One shows a screenshot of some one minute binary options. The payout is 69% in this case, & the Target Price is the current price. You would click “High” or “Low (not shown) which is equivalent to selecting Call or Put if you think the rate will be above the Target Price in one minute. The one minute begins as soon as you lock in your trade. Often the broker will also give some other short-term expiries as well. In this case, if you click the drop down menu you can also select 1 minute, 2 minutes or 5 minutes.
The main advantage is that you can essentially trade as much as you want. Theoretically you could make a trade every few seconds, minutes, or basically as fast as you can click your mouse. This enables you take advantage of any short-term chances you may see, without needing to worry about finding an expiry time that suits your time frame. Easy click to buy a put or call and wait 1 minute. Trade multiple assets & you’d have multiple trades on at 1 time, all expiring within a very short time frame.
From a trading perspective one minute binary options permit you capitalize on strong market moves effectively. If the EUR/USD for example is having a very strong morning, while you still need to time your entry, opportunity are the EUR/USD is still going to be strong 1 minute from now. Therefore, these options let you jump into the flow of the market, & get out of the trade quickly before a major reversal occurs. That said, you will still need skill in order to determine when strength may be waning, warning you it’s time to back off.
This permits you to seize every possible chance, and potentially rack up some huge daily gains.
While you can trade a lot in a day with one minute binary options & potentially make a lot of cash, you could also lose a lot. “Over-trading” is common among new investors who want to try to catch every market move, but these are not likely high probability trades to win. Good set-ups usually take time to develop, and therefore by using one minute binary options you may be distracted by mediocre or poor trade set-ups, missing the better ones.
The payouts on one minute binary options is also generally lower than other more traditional types of binary options, in the 61% area. This means you’ll need to have a very high win rate when trading. If you lose 99.99% of the capital you trade on losers, and only make 69% (for example) on your winners, you need to win six out of ten trades to breakeven (tiny profit in this case).
One minute binary options provide a load of potential, and give a method to seize short-term chances. Ideally, one minute binary options should be used for just that–seizing high probability short-term chances. There is a huge risk of over-trading these types of binary options since there is the possibility of instant gratification, or if you lose the potential for “revenge trading” where you try to recoup losses. This usually does not end well. Lower payouts also signal that these options should be used sparingly. Over the long-run you need to win about six out of ten trades to breakeven. To make a decent profit your win rate will need to be higher. That is difficult if you over-trade or trade mediocre set-ups. As with any trade, trade quality set-ups over quantity.