Binary Options Insights & Answers

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60 Second Binary Options

What is the best 60 second binary options strategy for traders? In this guide, we explore the strongest techniques available today. Discover key insights to help you make the right choice.

60 second binary options are an ideal solution for any traders looking to stay active and achieve quick results. One of the major benefits they offer is their speed — with options expiring in just one minute, traders have the capacity to perform dozens upon dozens of daily trades.

But one common question is “which 60 second binary options strategy should I choose?”. This is difficult to answer. And, to be fair, the entire process of 60 second trading is a challenge in itself: your ability to react quickly upon seeing the signal makes a major impact on your success.

Fortunately, the best 60 second binary options strategy for traders today makes it all a little easier and more effective.

Let’s start by discussing Bollinger Bands.

Harnessing the Power of Bollinger Bands

In case you don’t know, Bollinger Bands are a form of statistical chart utilizing a formula Mr John Bollinger advanced back in the 1980s. These charts characterize the volatility and prices of certain commodities or financial instruments over periods of time.

For traders, Bollinger Bands are a huge help in making effective trading choices or performing technical analysis.

The strategy we’re discussing here has been based around Bollinger Bands, though it employs a number of additional indicators too. It’s easier to grasp than it may appear at first, though some experience in Bollinger Bands can prove helpful when you’re just getting started with it.

Perhaps the most effective way to start is by using the hourly charts to set trends. This can be done in various ways, but you should select a market which is trending well currently.

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The hourly chart is ideal for pinpointing short-term trends, but only trade the uptrend on the hourly if the daily’s trending up. Likewise, if the daily chart shows downward trend, only go for the downtrend in the hourly chart too. Lines should be drawn in red on this chart.

Start with a daily chart and search for a trend you like the look of, whatever it may be. Daily charts work well for spotting trends running for a shorter term and any areas of resistance or support.

It’s recommended to utilize a candlestick set-up, look for trend, and confirm using trend lines such as Stochastic. Trends in the daily chart may be up, sideways, or down — be prepared for any of them. Keep all lines marked on this blue.

Next, you want to cast your eyes to the hourly chart and look for your trade of choice. Many traders prefer to use MACD, stochastic, and/or trend lines when performing this part of the process.

Furthermore, you should draw trend, resistance, and support lines as you see fit. Why? Because they’ll make it easier to identify your entries and to help you avoid those trades carrying more risk of a loss.

It’s worth remembering the one minute chart, too, which is where you only utilize Bollinger Bands. When a trade has been marked as up, be sure to trade bullish signals for down trends.

To reiterate: this strategy can appear complex at first, but once you really get started, you’ll find this 60 second binary options strategy simpler than expected.

Understanding Signals for this 60 Second Binary Options Strategy

<>While Bollinger Bands put out a variety of signal types, the crucial one in this strategy is the bands narrowing or widening.

Why? Because when bands widen, this is a signal of market movement, particularly an increase.

Narrowing bands represent an asset lacking volatility and failing to show as much movement as it might when the bands become wider.

In this strategy, the pre-signal is the bars widening, and so you should only trade when the bands are wide, as the market will be moving. Be sure to watch the bands: they will form a vital pattern over time, which moves along with the important underlying asset itself.

As the bands start to widen following a run of narrow-band trading, this tells you to watch out for relevant signals. You will take entry when a signal verifies an underlying trend as presented on hourly charts — and it’s here that good experience can make a positive difference.

Bollinger Bands send out many varied signals without consideration of trends, and, as a result, you’ll find that some personal interpretation is necessary to pinpoint the right signals for you.

To this end, many traders make a habit of using trend to spot some of the signals produced. Maybe you’ll want to do the same.

Here are some key points to remember:

When a price moves up and touches a Bollinger Band, this can typically be considered a signal that the relevant trend is set to continue in the same direction

Any candlestick signals which occur on a band can be regarded as confirmations of that band, so do be aware of them

If price overtakes a band, this can be interpreted as a signal that prices are at an acceptable peak, and will probably start to recede soon

Lower bands typically act as support during an uptrend, while the upper band serves as resistance with downtrends — try to learn the difference

Signals confirming resistance, support, or trend while confirming any of the Bollinger Band lines should be recognized as being strong

If bands start to narrow following a time of widening, this signifies the trend has begun to slow, which means the asset could enter into a time of consolidation — it might even correct or pull back

As mentioned earlier, this 60 second binary options strategy may seem intimidating to start with, especially for traders in the early stages of their career. But it’s well worth trying and sticking to in the long term. Follow the tips above to see how this strategy works for you.

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Trade the markets you love

Choose from a wide range of assets including popular cryptocurrencies like Bitcoin, Ripple, Ethereum. Our diversity of tradable assets provides you with a wide range of financial instruments to trade on at anytime, even on weekends.

Helpful answers

Contact us, ask us any question you have. We’ll get back to you in 24 hours.

What are binary options?

Binary options are based on a simple yes or no question, will an underlying asset be above a certain price after a certain period of time or not? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. You can receive up to 92% profit per trade or lose some.

How to open an account?

The registration process is fast and easy! Simply follow these steps:

  • At 01option.com click “Open an account” button and go to Registration page.
  • Fill out the registration form with your full name and email address plus a secure password then click “Open account” button.
  • Open your email box and find the email verification letter from 01Option. Open it and click the “Verify my email” button.
  • That’s it! Welcome to 01Option and enjoy your time with us!
How to trade binary options?

Below are some basic guidelines that help you start trading in a few minutes:

  • Login to your account and from top menu choose “Demo account” or deposit money to start trading. The minimum deposit is $10.
  • Select the asset to trade. Choose from a wide range of assets including popular cryptocurrencies like Bitcoin, Ripple, Ethereum. You can choose to trade in currencies, the popular one being EUR/USD.
  • Decide on the amount to invest. The minimum investment is $1.
  • Predict the price movement. If you predict the price of asset to rise, select UP (green button). If you prediction is that the price will fall, select DOWN (red button).
  • When the trading closes after the given time, for example after 60 seconds, if it is a 60 seconds investment and you have made the correct prediction, then you win. An investment of $100 with a 92% payout means that you will have made 92 dollars in a few minutes.
Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

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