60-Second Binary Options Trading Tips For Beginners

60-Second Binary Options Trading Tips

60-second binary options trading tipsThe only thing better than generating profits is generating fast profits. 60-second binary options trading allows us to do just that. And actually an accurate title would have to include 30/60/120/300 second options as well. But that would make for quite the cumbersome title wouldn’t it? However, we will be touching on those other short expiry windows.

It is entirely possible to earn hundreds or even thousands of dollars in a very short time if you do your homework and make wise trades. On the flip side, fast trades can equal fast losses. So, let’s examine the best use of this type of trade. When short expiry time periods first entered the marketplace 60-second binary options trading was the only option. Today, most binary options brokers now include additional expiry times of 30, 120 and even 300 seconds. What each of these expiry times present you with is the opportunity to generate profits from short-term price movements. They also give you the chance to profit from multiple consecutive trades whenever the price of an asset is strongly trending.

60-Second Binary Option Trading And Volatility

Keep in mind that a large trade volume is quite easy to accomplish under such circumstances. Almost unavoidable for that matter. Asset prices do not remain the same for very long. There is a constant push and pull in the market. Constant buying and selling is always pushing asset prices in both directions at once. For traditional market traders volatility can be quite frustrating. For the binary options trader it can be quite profitable.

A long-term price trend can allow you to lock in a large number of profitable trades in a relatively short time. Brokers offering 60-Second binary options trading will allow you to profit from much shorter-term movements. Essentially adding a multiplier to your profit margins. These movements can be reasonably interpreted on the asset price chart of your choice with a little practice. Risk is always a part of trading though. No matter what it is you are trading. The risk level associated with 60-second trades can be higher than that of other trade types. However, the danger lies in how you use and treat them.

60-Second Binary Options Trading Money Management & Mindset

If you treat these instruments with the seriousness and respect that any financial product deserves then you should be fine. If you treat them like the roulette table at a casino you’re likely to get better results just going to the casino. You should treat these financial instruments with the respect they deserve. Do not treat them as some form of gambling mechanism if you want to profit. You WILL lose in the long-run if you treat it like a casino. I can promise you that much.

Since 60-second binary options are so short-dated you must be able to know when to trade and not trade. This is an even more important skill than usual with extremely short-dated contracts like these. When market conditions are not optimal for this trade type just avoid trading. Walk away and live to fight another day. Or possibly even just select a longer expiry window, one more suitable to current market conditions. There are many choices and combinations to choose from. You should rarely find yourself in a position of not being able to find a suitable trade anywhere. One of the best things about 60-second binary options strategies is that they can reduce the time commitment needed. One analysis session could point you in the direction of several profitable trades.

60-Second Binary Option Contract Example Discussion

Lets do an example of the above discussion. If you’ve determined that an asset is likely to trend upward over the next 15 minutes you could choose to enter into several fast trades. This allows you to profit from that movement multiple times in a short period. When 60-second binary options trading was first introduced they were an immediate hit. Traders were clearly able to see the benefits of being able to opt for much shorter expiry periods. This is the best way to profit from short-term price movements (but they can be hard to predict). Some traders exclusively use this trade type now. However most choose to mix things up with the trading of multiple contract types. There is no right or wrong though.

Good luck to everyone in all your trading activities! Whatever they are and wherever they are done!

24Option Review 2017 – A New Look At An Old Broker

24Option Review 2017 – New Look At An Old Broker

24option reviews 2017 logo image24Option is one of the oldest and most popular of the global binary options brokers. And despite exiting the lucrative US market in 2015, they have remained one of the most popular brokers in the EU. They have always enjoyed a great reputation among traders and industry watchers but a lot has changed recently. We hadn’t traded with them for awhile and wanted to check back in and see if they were still living up to the reputation they had previously earned. Are they still competitive with other comparable brands in the industry? That’s what we wanted to find out in our updated 24Option review for 2017.

24Option Review General Information

24Option Website: http://www.24option.com/
Platform Launched: Late 2011
Accepts US Traders: EU-Regulated
Minimum Deposit: 250 (50,000 JPY)
Account Currencies: USD, EUR, CHF, GBP, JPY
Deposit Bonus: Yes – From 20% Up To 100%
Contract Variety: High/Low, Above/Below, One-Touch, Boundary, and Short-Term
Other Instruments: Forex and CFDs are also offered at 24Option
24Option Demo Account: Yes – But For Depositors Only

The 24Option trading platform is one of the most feature-rich platform of any binary options broker operating in the market. Generally we recommend that our readers use more advanced off-site charting software (such as the free TOS software by TD Ameritrade) for their binary options trading analysis. But in the case of 24Option we only rarely found it necessary, or even desirable to go off-site to use the more advanced, downloadable TOS charts and technical analysis tools. That was certainly a pleasant change of pace, and makes for a noticeably more convenient trading experience.

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24Option General Information & Feature Highlights

  • Trading Platform & Service Available In 16 Languages
  • Now Offers FOREX and CFD Trading!
  • Can Make Max Investments of Over $50,000+ *Highest In Industry*
  • Hard To Find Trading Options Offered
  • Large Library of Training Videos & Articles For Beginners
  • The Best Mobile Apps In The Industry That We Have Seen
  • Daily One-Touch & Boundary Options + High-Yield Weekly Variety
  • Licensed & Regulated by The EU’s CySEC
  • Frequent Promotions & Trading Contests With Great Prizes!

24Option High/Low & Above/Below Option Contracts

The above/below contracts may seem quite similar to standard high/low contracts but they work very differently. They also offer much higher potential returns. In some ways they are more similar to a one-touch option than a standard high/low option. The payouts are similar to one-touch options as well. However, unlike the one-touch these options must be ITM at expiration like the standard high/low. You won’t find these contracts at very many brokers, but they can make for some interesting trading and strategy development options.

24Option Short-Term Binary Options Contracts

Moving on to the next most popular contract variety, we have the “Short-Term” binary option. This is 24Option’s answer to 60-Second options trading. Instead of just 60-second contracts 24Option gives you a choice between 30-second, 60-second, 2-minute and 5-minute contracts. This gives the trader more flexibility in their trading and strategy development than they would with strictly 60-second options.

24Option Daily & High-Yield Weekly One-Touch Options

24Option offers both daily one-touch options and high-yield weekly one-touch which are available for trading during the weekend. The best of both worlds. The daily variety of these contracts will have smaller magnitude “strike price” levels. Therefore smaller return rates will be offered on these. For these contracts you can expect returns as high as 89%. With the high-yield weekly options they can range from around the 200%+ level to as high as 310% in some cases.

24Option Boundary Option Contracts – In/Out Options

The boundary option is one of the more rarely seen contract varieties. They can only be found at a small handful of brokers at this time. Whether or not that changes going forward will depend on customer demand, how popular they get. 60-Second options started with Traderush, for example, but eventually spread across most of the industry as their popularity skyrocketed. This is a highly competitive industry. As a general rule, the customers get what they want, or they go someone where they can get it. The future of these contract varieties depends on their success at their respective brokers.

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All told that makes seven different contract varieties just for the binary options side of things. Then of course they also have Forex and CFD trading available. Certainly one of the most diverse brokers out there offering plenty to always keep you busy. You’ll never have any trouble finding potential trades with 24Option. They could possibly use some improvement in their underlying asset selection in our opinion, but it is still pretty good, and definitely has all the most popularly traded global assets. And they make up for any lack that may exist in that department with their great contract variety. Overall 24Option may just have the best on-site trading platform of any broker currently operating in this business.

24Option Customer Service & Reputation Review

24option education center videos and articlesDuring our 24Option review period (32 days) we made a total of 4 contacts with their customer service agents. Twice through the on-site live-chat feature. Once through email. And once by phone (the last being our withdrawal request). We’re happy to report that this year they went 4 for 4 with positive experiences each time. The response times for the live-chat contacts was a matter of seconds to just over a minute. And the email question was responded to in about 10 minutes (this was during market hours). The withdrawal process was hassle free, reasonably fast, and with no withdrawal cancellation pressure.

24Option Review Conclusions

As for the reputation of 24Option, this is one of their strongest points. Within the community of binary options traders 24Option has a reputation for a long history of reliability and excellent service. You would be very hard-pressed indeed to find anyone with a legitimate bad word to say about this broker. In short, 24Option is one of the most trusted and financially sound brokers in the industry.

Overall 24Option Review Rating = 4.85/5 Stars

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As always, if you have any personal experience with 24Option you would like to share please leave a comment below! Or Contact Us. We and your fellow traders appreciate your valuable feedback!

Pairs Trading – Stockpair Trading With Pair Options

Pairs Trading

binary pairs trading with optionsWhat is pairs trading? There is more than one kind of pairs trading but in this article we will be discussing Stockpair pair options trading. Pair options were first introduced to the retail markets with the official launch of Stockpair in 2010. Since that time pairs trading with options has rapidly gained in popularity and mainstream acceptance by the trading community. A predictable result of this popularity with traders has been the spread of pairs trading beyond just the Stockpair platform. Many of the most popular binary options brokers have incorporated some pairs trading capability into their binary options platforms. However, the pair options offered by these brokers are a bit different from those offered by Stockpair.

pairs trading with stockpair binary pairs

Pairs Trading – Pair Options With Stockpair

All varieties of pair options contracts at the various brokers share some fundamental characteristics which make them “pair options,” of course. So before getting to the specifics of each contract type let’s look at a general overview of what these instruments are all about.

what is pairs trading with stockpair pair options

Pairs trading is the simplest means of trading on  the relative performance of a “pair” of underlying assets. Most often the “paired” assets will be similar or from the same sector. And, because it is only the relative performance that matters, pairs trading is a completely market neutral form of trading. Simply meaning that overall market conditions are irrelevant to the outcome of your trades. You can make money on up or down markets with equal ease, it makes no difference. That’s pairs trading in a nutshell, but don’t worry we’ll be going a bit deeper than that. But first some highlights…

  • Entirely Market Neutral Instruments
  • High Returns Of Up To 350% Per Trade
  • Precise Risk Management
  • Extremely Simple To Learn & Trade
  • Great For Hedging Other Instruments
  • Simple “Standard Deviation” Pairs Trading Strategies
  • Smaller Than Usual Drawdowns

I think that those are probably the main and most important highlights of pair options trading. Certainly there are others, but you will discover them on your own easily enough if you decide to try pairs trading. And some will apply more to one variety of pair options contract than another, so you’ll have to play around a bit. Because they are the simplest form we’ll first go over the type of pairs trading that you will find at brokers that specialize in binary options. That is, everyone besides Stockpair.

pairs trading strategies with binary pairs at stockpair

Pairs Trading With Binary Options Brokers

The image above was taken from our personal trading accounts at one of the popular binary options brokers. As you can see from the images, both brokers treat their pair options contracts just like their standard high/low binary options contracts. And this is true across all the brokers that currently offer some pairs trading capability. This is very similar to, but not exactly like the “Fixed” variety of pair options offered by Stockpair. We’ll get to those shortly. This variety is quite simple and they are very similar to a forex trade in most ways. The only major difference is that the assets paired are stocks and commodities instead of currencies.

Stockpair Pairs Trading Examples

Stockpair, as the name implies, specializes in pairs trading. They were the first to bring pair options trading to the retail sector. As such they have a unique and proprietary trading platform that was built around the idea of pair options. They later added binary options as well and are a strong competitor in that area too. Stockpair is the undisputed king of pair options trading and they do it extremely well. Unfortunately, they no longer accept US traders. But they do accept clients from most EU countries.

Fixed Pair Options At Stockpair

As we mentioned earlier, the fixed variety of pair options are very similar to the standard high/low binary option contract. Which is why binary brokers were able to incorporate at least limited pairs trading into their platforms. Nevertheless, Stockpair still does it better and they are a little different, so let’s take a closer look.

pair trading strategies with binary pairs

 

Stockpair pair options trading offers more asset variety and features than the pairs trading offered by other binary option brokers. They also offer a much better expiry selection. With ranges from 5 minutes all the way up to 150 days! They generally offer higher return rates on their fixed pairs than the other brokers as well. But not always. With these contracts performance is measured only from the time of purchase forward, until expiry. Let’s look at a quick fixed pairs trading example.

Fixed Pairs Trading Example

To simplify things we’ll use the stocks from the image above for this fixed pairs trading example. Lets say our hypothetical trader believes that Google is likely to perform better than Facebook over the next two weeks. Nothing that has taken place before now matters to our trade. As soon as we purchase our “put” fixed pair option on FB/GOOG their performances are set equal to each other.

1) Purchase of Put Fixed Pair Option for $100 on FB/GOOG pair
2) Fixed Pair Offering Returns of 84%
3) Performances Are Reset By Stockpair To Equal 0.00%

Now let us further assume that our hypothetical trader was correct. After announcing a positive earnings beat after markets close on Friday, Google stock soars during Monday’s trading. Fast forwarding to the end of our two-week expiry window we have the following results.

1) Facebook Stock Has Gained 1.73% From Time of Purchase to Expiry
2) Google Stock Has Gained 2.32% From Time of Purchase to Expiry
3) Meaning Google Outperformed Facebook by 0.59% Over the Period
4) Which in Turn Means the Trade Finishes ITM For a $184 Return

pair trading strategy example

Floating Pair Options At Stockpair

Floating pair options are only available at Stockpair as far as we know. This type of pairs trading is the more “exotic” of the two pair options contract types. These instruments can offer returns from just a few percent, all the way on up to over 350%. There is a lot of flexibility and room for pair trading strategies with these contracts. They are what made Stockpair a star originally.

With floating pair options contracts performance is measured over a fixed period of time. They do not reset at the time of purchase. This allows for “floating” return rates that fluctuate with the difference between the two assets performances. Which sounds more complicated than it really is. These contracts are only available with three expiry windows though. They are offered for a day, a week or a month. Performance is measured over the whole of those periods. As a result divergences can grow quite wide.

stockpair trading strategy example

 

Floating Pairs Trading Example

Once again we’ll use the trade image above for our example to keep things simple. In this example the expiry window for the floating pairs trade is one day. And this image shows a couple of hours into the day. At this point RIO had performed significantly better so far that day. Therefore RIO had the better chance of finishing the day as the dominant performer. Our hypothetical trader believes that RIO is almost certain to maintain its lead throughout the day. He is happy to take an easy 27% return. Not bad for such a “sure thing.”

1) Prior To Purchase BHP Had Lost 0.73% So Far That Day
2) Prior To Purchase RIO Had Lost 0.26% So Far That Day
3) So RIO Had OutPerformed BHP by +0.47% So Far That Day

For our newly opened trade expiring at the end of the day to finish as a loser BHP would need to outperform RIO by 0.48%. And it would have to happen over the course of the rest of this day. Certainly possible but very unlikely given the circumstances. And in fact our trader was correct. BHP did not rally to overtake RIO in the last half of the day. This trade then finished solidly ITM for a 27% payout. A return of $127 on our $100 investment. Not a huge gain. But also not bad for such a high-probability trade. It is that kind of flexibility that makes these options so useful and fun to trade.

what is pairs trading with binary pairs

Pair Options Trading Introduction Conclusion

That’s pretty much it for a brief introduction to pairs trading. We will also be publishing some in-depth pair options strategy material in coming months. Stay tuned for that. We have really enjoyed pair options trading ever since we first tried them. This was while doing a review on Stockpair several years ago. Unfortunately, as US traders ourselves we can no longer trade at Stockpair. But most of the rest of the world is still welcome.