Binary options are one of the most widely-used instruments, especially among those who do not want to spend time on complicated calculations. And its most popular type is 60-second binary options that allow getting big profits within just a minute. Hence, we want to provide you with guidelines on how to use this instrument with the biggest advantage.
To start with, as you have probably understood, this type of option assumes that a trader must predict how the value of an asset will change within 60 seconds.
As a result, this tool provides the following advantages:
- one can make profits very quickly;
- one can execute dozens of trades per day by spending only one hour or so;
- one can take benefit from the slightest short-term price movements;
- there is no need to perform long-term analysis, it is enough to study price movements within only a few recent hours or one day.
Speaking about potential disadvantages, one must mention that, due to extremely short timeframes, traders risk losing significant sums rather quickly. Besides, short-term movements are more difficult to predict, so higher risks are involved.
However, there are effective methods of taking those risks under control. Thus, below, we will tell you about the most universal and commonly used 60-second binary options strategies:
- Subscribing to signals. These are notifications about which trade to execute and at which time. They are compiled either by algorithms or by human traders who decide to share their calculations with colleagues for a certain fee.
- Analyzing trends. To predict an upcoming price movement, have a close look at the corresponding chart. If the line is directed upwards, there is a good chance that the price will increase as well, and vice versa.
- The Pinocchio strategy. The approach is opposite to the previous one. It implies analyzing candlestick charts and betting against the trend shown.
- Controlling risks. No doubt, trading always involves certain risks, especially when it comes to predicting short-term price changes. But you should make every effort to minimize those risks. For that, be sure to perform market analysis prior to placing a trade and stick to small and bearable sums (no more than 1–2% of your overall budget).
Also Read: Choosing a Crypto Trading Bot for Binance: Free Products
In sum, 60-second binary options are a great source of additional income, but, to benefit from it, one should formulate his personal strategy and follow it.
Also Read: Binary Options Auto Trading: Which Software to Choose?