Binary option minute also known as turbooptions. There are expiry times of 30 seconds, but option 1 minute is the most popular. Its advantages: quick profit on a strong trend, optimal yields, the possibility of earnings on liquid currencies. Despite the attractiveness of this timeframe, for beginners it is a trap. No wonder the professionals advise beginners to work currency pairs with reasonable liquidity (Canadian, Australian dollars, etc.) at hourly intervals. Why trading 1 minute options is danderous, how to avoid loss and to earn, what are the strategies, read on.
How to earn with binary options duration of 1 minute
The risk of trading with a short expiration (scalping) is that immediate profit just seems simple and quick. Professionals advise beginners to select the hourly time frames and work currency pairs with reasonable liquidity. Assets like EUR/USD, better to avoid stocks at the beginning.
The main problems of minute options:
- slippage. Binary options with a duration of 1 minute are frequently used for a strong trend. When there is demand, supply drops sharply, which leads to slippage. There is a possibility to buy an option on a trend reversal;
- redraw. The most common strategy minute options trading based on candlestick analysis but the signals of the oscillator or candles can be delayed. The inaccuracy of transmission of the quotations leads to the redrawing of candles, with the result that the transaction is unprofitable;
- price noise. Its nature is a separate small transactions that in either direction change the direction of schedule. Even a strong trend is not a straight line and has in the short term a zigzag shape. Expiring 30 to 60 minutes on a strong trend with almost 100% guarantee will bring profit, 1 minute expiration can give loss.
The first two problems are eliminated by working with a reliable broker (a list of good brokers look here). Price noise is smoothed by more high time frames.
Rules of trading in binary options “1 minute”:
- to trade only in strong trend. At the time of the flat the volatility is so low that the probability of loss is close to 50%;
- be sure to follow fundamentals. Remember that at the time of the news (report) the traders spend some time to analyze the situation and then make a decision;
- look for a broker with a fast platform without lag and redrawing. Reviews, tips, forums, personal experience will help.
Working with minute options every day, through time you’ll develop your trading strategy and understand how to minimize risks. Remember that real trading is different from demo account. Getting strategies on the result of a demo account 80% on the real market percentage is about 70%.
Binary options strategies with duration of 1 minute
1. Indicator Pin-bar
Tactics of binary options are based on graphical analysis and confirmation signals. The pin-bar is a reversal pattern that is formed in a time when buyers purchase the volume of sellers and sellers quickly sell an asset, while price rises under the pressure of demand (upper pivot point). Pin bar suggests that the market is already saturated and in the near future the price reverses in the opposite direction. Additionally, oscillator (RSI, stochastic) is used for confirmation.
2. Trade on the news
Favorite trading strategy of novice traders. The essence is to analyze:
- economic calendar that shows the date of publication of important news. Trend plays the news from one hour to one day;
- dates of publications of financial statements of companies. If the report is good and surpasses the expectations of investors, then it’s almost a guaranteed profit;
- the economic situation of a country. Example: the recent rupture of diplomatic relations with Qatar immediately led to the fall of oil from 53 to 48-49 USD. Another example is a political scandal with Trump, who immediately strengthened the Euro against the dollar.
The advantage of tactics — no dependency on a broker and platform. Trade can be performed with almost any broker.
3. Channel strategies
Levels of support and resistance, Fibonacci levels, indicators of “Bollinger Bands” and “Ichimoku Cloud” are all tools for market analysis, determining the corridor of the prices. The breakdown of the levels says about the origin of the strong trend (a correction, because the power of price is confirmed by the oscillator). Bounce from the borders suggests that the price is slowly but surely going to the opposite level. The duration of expiry 1 minute gives good results on a minute timeframe.
4. Strategies with moving average
Binary options strategy 1 minute with one moving allows you to earn using candlestick analysis. If the indicator crosses above the candle and goes down — buy a PUT option. Moving closer to the candle, the better the prognosis. The period of the moving — 8.
Tactics with multiple moving averages (three is enough) based on what the market need to log in to their intersection. The periods are selected individually for each currency pair. The direction of the option corresponds to the direction of moving.
What exactly not to do when trading minute options:
- to get involved with martingale strategy. Binary options 1 minute subject to the laws of the market, not probability theory. The use of martingale calculator can lead to the loss of the entire deposit within 4-6 trades. Read more about Martingale here;
- work on only one indicator or the news without the use of confirming signals;
- use expert advisors downloaded from unknown websites, the signals of companies (paid or free) without confirmation and without an understanding of how they work;
- make predictions for a large sum of deposit. The normal forecast is amounted to 2% of the deposit, the amount of simultaneously opened positions not more than 20% of the deposit amount;
- use a hedging strategy. If the prediction was unsuccessful but a binary option 1 minute is still in force, open the opposite option with double amount. The strategy of hedging and arbitrage used only by professionals. Beginners, incorrectly assessing the market, may easily lose money.
Summary. Scalping in binary options — strategy for professionals. Having no experience, not aiming for a quick profit. Options trading 1 minute is a difficult job requiring patience, perseverance and experience. Successful scalping is a performance not less than 80% of profitable trades of not less than 100 open positions. Keep statistics of transactions, analyze the reasons of loss and profit and deal with the same traders like you. And if you still doubt whether to get acquainted with binary options trading find out the opinion of specialists.