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Trading 30 second binary options – Advantages and Risks

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Binary options brokers are always searching for new products (new option types, new maturities, new assets…). The new binary options hype products are the 30 second options that were first introduced by 24option. 24option is still the only broker of our ranking to propose such ultra-short term options but many other brokers (not reliable ones) also added this new type of options in order to attract ultra-short-term traders. If you have already traded 60 second options, that most brokers call SPEED binary options, then you know more or less what you can expect from 30 second binary options. 30 second trades are built on the same principles, but they go twice as fast.

trading-30-second-binary-options

30 second binary options ccharacteristics

30 second binary options are only available in the form or High / Low binary options, also called Call and Put in the industry. The risks to cover and the replication models are too complex for most brokers to propose 30 second maturities on more advanced option types such as No Touch or Range. Up until recently, the 60 second options were the shortest trades available. With the recent introduction of the turbo style binary options from 24option an GOoption in the US, short-term traders can get their fix in half the time.

30 second binary options offer the highest time-weighted returns

The good news is that these ultra-short-term options are offering the same returns as the traditional binary options. It means that you can now generate 70% to 80% on your invested cash amount in just 30 seconds. In terms of annualized returns, 30 second binary options are the only financial instruments able to reach such levels. Just think about it. If you buy a High binary option on Oil for instance and invest $100, you can make $80 in 30 seconds if oil trades higher 30 seconds after you opened the position.

30 second binary options are great for both trading the news and scalping

As we already presented it in our Trading the News with binary options article, short-term binary options are great for trading the news. This is because the news related asset is likely to move strongly in one direction and stay there. If you are able to catch the move on the right direction, only 30 seconds is more than enough to make a profit. If you are a fundamental analysis trader, and you place trades based off the release of news reports then you know the impact such release can have on an asset price and you know the 30 second binary options will turn out to be particularly fit for the job. If ever the move reverses quickly, this can happen quite often with news that needs to be interpreted; your 30 second is still likely to expire In-The-Money before the move reverses. Even though most brokers propose early closure for longer term binary options, they always impose severe restrictions on the use of that feature and lower the payout of early closed position.

30 seconds binary options are also perfect for scalpers. Scalpers are mostly traders that use a trading system that will automatically generate trades based on trading signals. Their trading signals need to be fine-tuned to match the 30 second expiry; they will have to shorten the duration of their technical indicators to identify short term signals. If you have an efficient system that allows you to be profitable with a higher frequency than your break even ration, then 30 second binary options will enable to leverage your system further and generate higher profits. Once again, make sure you do your testing before you start trading this kind of system live with real money.

Don’t underestimate the risk associated with 30 second binary options

30 seconds binary options may seem easy to use and adapted to any trading profile but they remain highly risky financial instruments. Binary options’ trading is not gambling, it is a financial instrument and this means that it incurs a part of risk. Thus, if you can make $80 in 30 seconds (base on a $100 investment and an 80% return), you can also lose $100 in the same amount of time if ever the asset evolves in the opposite direction. Making money always requires effort, and this effort lies in learning about financial markets, about how certain assets are impacted by certain news events and about how technical analysis applies to certain assets more than others. We will never be able to do this job for you but we can help you understand it all the steps by steps. The two most important things to keep in mind when trading 30 second binary options are:

  • To limit all your trades to less than 10% of your total capital. Trust me; you don’t want to risk losing it all in just 30 seconds.
  • To backtest your trading system with historical data if ever you use 30 second binary options via an automated trading signal.

24option is the only broker from our list of recommend binary options brokers to propose 30 second binary options. These options are available on more than 20 forex pairs with a proposed return of 70% and no return on loss. Don’t hesitate to have a look at our detailed review of 24option for more information on the broker or use our below secure link to access its website.

Visit 24Option

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