Trading in binary options daily is a quick investment and not for long term. But how much is based upon need and circumstance. Though the standard time is trading in months or week or fortnightly yet there is some interim trading including the Binary options daily. These include one minute, five minute and even the sixty minute trade. The topic of discussion here is 60 minute binary options. How 60 minute – second or one hour can bring wonders by working for real trading on forex and stock markets.
While trading for 60 minute or 60 second binary options daily, practically you are undertaking 60 times risk than undertaken in 1 minute trade but unfortunately the gains cannot be said to be multiplied by sixty. Since the market fluctuates every second it is difficult to predict its movement after long 60 minutes but still some strategies can be used to cover the risk and earn maximum in this duration.
Since the market fluctuates within the range during the short span of time. A simple analysis of the range can help in multiplying your pennies.
Basic strategy. If the business is probable on the upper side buy the call option now and sell it after 60 second or 60 minute if your prediction goes right. On the other hand if you expect the index to be on lower side buying the put option will be beneficial. Before entering into any sort of deal you must calculate your expected gain and then compare the price you are paying for it. Since the transactions are entered for very a limited time, any risk which is quite predictable should be avoided. For instance if the fair value of option calculated by commonly used methods is less than the premium or the cost of such option then that should purely be avoided.
The Two Factors Which Effect The Decision Of Investment The Most Are:
Liquidity is very important factor before undertaking any sort of investment. It can also serve as a most favorable or the most unfavorable factor as well. Liquidity refers to the availability of ready cash or quick realizable securities. Higher the liquidity higher will be the security. Especially in interim trades it is considered prominent because short-term investments are made with a basic intent of ensuring liquidity. There are also highly liquid trades which are known as the daily 60 second Binary options. These trades are dealt with expectations of high growth rate since the duration involved is just one minute.
Since the market is highly fluctuating its graph is always formed in a zigzag manner. This clearly indicates its volatility. This is the term used to describe the adverse or favorable effect on market index at different points of time. If the fluctuation is within the expected low range then it’s not said to be volatile but if it fluctuates beyond the expected range or the differences between the indexes rates are varying highly then the rate is said to be very high. In such a short span i.e. just 60 minutes daily any surprise declaration can bring a boost in the market or even the reverse can happen. Therefore the short-term options are said to be very volatile. On the other hand any expected or unexpected adverse effect can sometimes result in windfall gains. To prevent the investors from the risk of this effect, many stock exchanges or the Binary Option brokers charge a margin from their clients to avoid holding of investments for a very long term. This is because a long term effect can unfold itself in many aspects and can even bring loss for the patient investors.
The same factors are equally considered for foreign exchange deals. The forex market is quite a sensitive area. This exchange has inherent capacity to make millions out of the few cents. The binary options brokers or the dealers need to keep their eye on highly fluctuating currencies. Foreign exchange is the area where the entire businessmen or the traders have to deal with.
This is why various techniques such as leading or lagging, buying currency futures or forwards have been invented to protect the dealers from any sort of loss.
In the 60 minute – second binary options daily in forex business the immensely high fluctuating currencies are traded usually. These are those in which the previous data show that frequency of transactions was very large as compared to other currency deals. Thus these options in foreign exchange are traded only by few major dealers because of the risk and volatility.
The high traded currencies are exposed to large amount of fluctuations generally. So the scope lies in such transactions only.
Amount of Transaction
The short-term investments are usually made in bulk. Since the growth rate is expected to be less therefore for expecting higher profits it is necessary to invest a higher amount. The result can be both ways so a heavy investment can give you heavy profits or the heavy loss if it didn’t turn out as per your expectations. Therefore there can be a demand of generating heavy funds and since supply follows the demand the money earned in in such a short-term can be utilized in lending at lucrative rates.
Binary Option Forums: To deal with many disputes and to prevent investors from any sort of unnecessary losses or risks the binary options forum has been laid down. It deals with all the verification and auditing to ensure that no kind of malpractices have been undertaken by any of the brokers. It ensures that all the dealers are duly registered with the forum to avoid any kind of fraud which can adversely affect the money of innocent investors.
All in all the daily 60 minute binary options can be profitable or immensely high in loss because of the duration. It is necessary to ensure trade through reputed brokers to increase the probability of success. This is meant for the benefit of those investors who believe in taking risks in the short-term and have high expectations of growth. So these are safe and secure by virtue of forums constituted for this specific purpose and the daily 60 minute or second covers such a little span of time that anybody can prepare oneself to deal in this risky venture!