Simple price movement predictions are at the heart of binary options trading. Today, traders have the ability to earn excellent returns in less than one minute when using short-term expiry times. The benefits of selecting such fast-running trades are many, including a reduction in the time commitment associated with analysis, as well as the ability to arrive at more accurate price movement forecasts.
Short-term binary options trades work exactly the same as basic Put/Call trades. The only difference is that the expiry time will be much shorter. The goal is to determine where the asset price will be when the trade concludes. There are only two possibilities to choose from – will the asset price be higher or lower than the entry price when the expiry time has completed? With just a bit of analysis, anyone can make this prediction with a high degree of accuracy.
The easiest path to fast profits will be to select an asset that has a trending price. When trading binary options, it makes no difference whether the trend is upward or downward, as either can be profitable. Price trends are easily noted within price charts, which makes them the perfect type of price action for beginner level traders to earn money from. When selecting short-term trades, it becomes easier to lock in profits before the trend comes to an end.
In order to quickly spot a price trend, simply check out the most recent market news. Major reports that are related to specific assets will quickly highlight the assets that are most likely to be trending at the moment. Once these have been pinpointed, the next step will be to view the live price movement and establish whether or not the report has caused an increase or decrease in purchasing, sending the price moving in one direction.
Although price trends are clearly the best type of price action, short-term binary options trades can also provide profits when market conditions are volatile. Even the most volatile assets will undergo brief spikes and drops throughout the day. When selecting a shorter expiry, profits can be derived from these brief changes. Analysis becomes even more important when price movement is erratic, but patterns are relatively easy to distinguish within even the most basic price charts.
There was a time when the only available short-term expiry was 60 seconds. Today, traders may have additional options such as 30 seconds, 2 minutes, and 5 minutes. Analysis results should be the determining factor in regard to which expiry time should be selected, but when in doubt, the shortest available time period is generally the best selection. When investor sentiment changes, asset prices change. This basic fact must be taken into account when selecting an expiration time.
The offered return rates on short-term binary options trades are often just as high as those offered along with other trade types. When trading along with a trend, traders can enter into multiple trades while the trend lasts, generating massive profits in the process. With this in mind, it really is no mystery as to why so many traders are now opting for short-term expiration times when market conditions are optimal.