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Published On: Thu, Nov 29th, 2012

60 Seconds Binary Options

Binary options have experienced a boost in popular interest recently propelling them from a practically unknown investment type into the most exciting and fastest growing trading instrument within the investment business today. The main factor behind this extraordinary change is their most impressive feature which is simplicity.

Binary options are considerably simpler to comprehend and trade compared to other major trading vehicles. For example, you are only required to assess in which direction the price of your preferred security will advance without worrying about the size of the movement.  Consequently, price just needs to finish one trading tick in your favored direction above (CALL option) or beneath (PUT option) the opening price of your option at expiration for you to be in-the-money.

You also do not need to consume valuable time devising an involved money management strategy as such a tool is an inherent facility of binary options. This is because you will know precisely how much you can anticipate receiving at expiration even before your binary options are opened. Binary options also payout larger profits than other investment forms and support a large choice of expiry times extending from intra-day to multi-month. As such, you have the stimulating opportunity to earn as much as 85% of your stake money very quickly. But wait because the show is just beginning. This is because many prominent brokers now enable you to trade binary options with payout rates as high as 75% using expiry times of just 1 minute. This means that you can now make 75% of your deposit in just a minute. Unquestionably, 60 second binary options have now become the most exciting trading means available anywhere on the market today. But, do they generate profits, you may well ask? Undeniably, very short time-frames produce inferior statistics compared to their long-term counterparts. As you also must attain a win-to-loss ratio of a least 60% in order to just breakeven, you cannot merely use them for just gambling. That being said, 60 seconds binary options have demonstrated that they can be an outstanding platform on which to construct trading strategies capable of producing impressive profits. In fact, many of their innovators have already become quite prosperous in recent times. You can increase your profitability even more when trading 60 second binary options if you expend time and effort mastering strategies that have been specifically built for them. An example will now be described. One of the most favorite 60 seconds binary options strategies is based on detecting breakouts because they are simple to identify and can produce inspiring profits. The main concept behind this strategy is that, if a security has been trading for a considerable period of time within a tight range, then when it does breakout it normally advances in its new trend for some extensive time period.

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The first phase in instigating this strategy is to locate an asset that has been trading within a tight trading range for some time. This means that you are seeking for a trading range that is well-defined by a ceiling and a floor, as illustrated on the above AUDUSD 1 minute charting chart. Quite frequently, price will hit against its ceiling or floor a number of times become it eventually escapes, as demonstrated on the diagram above. A decisive breakout should therefore be considered as a serious recommendation to activate a new binary option trade.

As the above chart displays, price does sustain a clean break below its support level positioned at 1.0382. You should now pause until the present 1 minute candlestick expires in order to verify that its closing price is definitely below that representing the floor of the trading range. This action will help protect against false signals.  Following confirmation, you should then initiate a new ‘PUT’ binary option using the AUDUSD as its underlying asset with the 1 minute expiry time. As this type of trading can be erratic, do not wager more than 2% of your account balance per position. As such, if your balance is $4,000, your wager will then be $80. Your strike price is 1.0380 and your payout ratio is 70% and rebate is 15%. After one minute expires, the AUDUSD posts 1.0378 and you are in-the-money and will receive $56. Return

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

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