Binary options first appeared as independent market less than 10 years ago. This trading method has been rising in popularity ever since, and it brought many new concepts and trading tools along. One of the relatively new, but now widely available concepts is 60 second options.
How do they work?
Pros and cons of 60 second binary options
60 second options have many advantages, but some disadvantages as well. On the plus side, it is very exciting to trade with such short expiry periods. It is fast and interesting; it requires you to stay wide awake and committed wile trading. Another advantage is that this short expiry period allows you to perform many trades in a very short period of time.
This means that you will be able to execute a lot of trades and potentially earn a lot of money in a very short time. This is especially convenient if binary trading is not your number 1 activity and you have a day job as well.
On the negative side, this type of options is not for everyone. The changes in the market over the course of one minute are very fast and dramatic. Making a correct decision in this case requires extensive knowledge and trading skills. This implies that 60 second options are not suitable for beginners in binary trading. Click here to read more.
Another disadvantage is that, due to short term and many changes, the risk is higher with these options. This is another reason why you should not opt for them if you are still not skillful enough. On the other hand, higher risk means higher payouts, so experienced traders can earn a lot with these options.
Requirements for short-term trading
In order for 10 second trading to be successful, there are certain requirements you need to fulfill before and during the trading. First of all, you need to choose a broker with secure, fast and very responsive platform. One of the good choices can be 24Option, because they offer a platform which can meet the requirements for all short-term trades.
Then, you must to develop and implement risk management strategies. It is necessary for every type of binary trading, but since the risk in short-term trades is higher it is absolutely essential in this case. You can achieve this in a variety of ways. Some suggestions are not to invest more than 2% of your overall deposit in 60 second options, or not to trade 60 second options alone.
The third requirement is to have the skills needed for market analysis. New traders still do not have these skills, but they can learn and adopt them over time. It is essential to be aware of the market changes and to be able to read chats and understand all the market movements.
If you meet these three requirements, you are likely to enjoy 60 second trading, and more importantly – to be successful at it.