Many binary options traders enjoy the thrill of short term trades. Making a prediction and gaining a result, positive or negative, in just sixty seconds is a fantastic adrenaline rush. However, it is now possible to get this same rush even quicker. Several brokers have started to offer a thirty second option and it is certain that more brokers will follow suit.
The basics of this type of trade are the same as the sixty second trade; just even quicker!
The most popular and basic form of trading is known as high or low ( check binary options trading guide ). In effect you choose an asset and decide whether you think the price will rise or fall within a specified time frame. In this instance that timeframe is now just thirty seconds. Once you have decided the direction it will move in you can trade on your asset, simply choose the amount you are prepared to invest and not the rate of return. If your prediction is correct you will collect the rate of return indicated. For example, if this is eighty percent and you trade $100, assuming your trade is successful you will receive $180.
The trades are fast, just thirty seconds from placing your trade you will know whether you have made a profit or lost your investment. This is exactly the same principle as sixty second trades; just faster!
Most brokers who are started to offer this new trade option have a dedicated area of the site just for these very short term trades.
Although it is tempting to literally pick a direction and start trading, this is likely to end up with you losing your investment. You must study the market to ensure you find a trade which is likely to go the way you want it to. This involves studying the asset you wish to trade in, for example a currency pair. You will then need to look at the market factors to see what may affect your currency pair; once you have isolated one that looks like it is about to move in either direction you will need to place your trade. As already illustrated, an eighty percent return will give you $180 from a $100 investment; an impressive earnings from half a minutes work!
If you read the above it may sound incredibly simple and almost impossible to lose. However, this is not the case. If you do not study the market and know what you are doing you will simply be giving your money away.
The first point that you must always adhere to is never to trade with all your finances. You should set a limit, such as five percent of your account balance and never trade more than this amount at one time. Otherwise, you may find that you have lost all your funds in one go.
Before you place your first trade you should practice. This is simply a case of watching the market and choosing a good asset to trade on; then wait to see if you are correct. The more you practice the better you will be at getting the right trade. You can also use this opportunity to build graphs of the assets you are watching; you may notice a trend which will allow you to predict the asset movement more accurately. This will mean you are a step closer to trading successfully.
Many brokers offer a trial account which is beneficial to access and get used to trading for real; without risking your own funds. Once you know that you can predict the right outcome more times than you are wrong, you are ready to start trading with real money.
Understanding when and why to trade will ensure you become a successful trader; you may then be able to trade binary options professionally!