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The trading form known as Binary Options is already known for providing one of the fastest ways in which you can start to earn a profit from financial trading. The contracts used often see trading positions expire as quickly as the end of the trading day or even on the hour. This makes them a fast paced investment with which profits can quickly be accumulated on the traders account. However not content with such fast profits, binary options have now got even faster with sixty second binary options. Just as their names suggests, these payout offer a high fixed return if you can predict the direction that the price of an asset will move over the period of just one minute.

The high returns that can be earned from trading with sixty second binary options is no doubt impressive. You can make as much as seventy per cent per contract on these fast paced options. The result is that if you have a good strategy and know what you are doing, it is possible to quickly accumulate substantial profits in your trading account. However there are a number of things that you need to be aware of an watch out for if you want to ensure that you can make the most from trading with these contracts.

The first thing that you need to understand when investing with such short time frame contracts, is that the markets are volatile and don’t move in a straight line. Therefore it is no good identifying a strong trend in a higher timeframe and expecting to be able to place sixty second contracts and just instantly win. You can easily get caught out if you take such an approach. Instead you will need to find a very short time-frame strategy which you can apply to the one minute chart in the same way that you would apply your analysis to a higher time period.

The other thing it is worth remembering is that you only have a small margin for error. Even the most fast paced of markets will not always move a great distance over such a short space of time. This is why it is imperative that you not only chose those assets that display the greatest ‘movement’, but also that you avoid heavy spreads from your broker. These will simply eat into your profits by making it much more difficult to register a successful trade. Therefore if you are serious about trading with 60 second contracts, you might want to consider checking out more than one broker before you start your live trading. You will then be able to compare the speed of execution that is offered and the spreads that he broker charges.

Many people who have traded for a while are reluctant to get involved with investing with these contracts. Perhaps quite rightly they believe that the risks of such short term investing is too high. However the attraction of these contracts is the high levels of profit that can be realised for the trader who gets it right and combines a strategy with good execution and a good broker. In this scenario, these sixty second contracts can prove to be one of the most lucrative financial investments that you can make.

The world of binary options trading has gained greater prominence as more people become attuned to the trading benefits offered. The simplicity of making money from what amounts to a higher/ lower choice of asset price direction, coupled with the potential for high profits has helped to fuel an ever greater uptake from this method of trading.

The accessibility of this trading method has also increased interest in this form of investment. It is so easy to get yourself up and running. Account opening only requires a small deposit and contracts can be placed on any of the major global markets from just a few dollars.

Here we take a look at three key advantages of using binary options as an investment vehicle and make a case as to why you should take a look at this trading method as a viable and simple way to get started with financial trading.

1. Access Global Markets

When you first open you account with a binary options broker you may be surprised to see the wide range of assets that are available for trading. Unlike when trading with Forex brokers for example, you are not restricted to the assets on which you can profit. All of the major financial asset classes are offered, including Forex currency pairs, Stock Indices and Commodities. It is also possible to profit from movements in some of the largest global companies with contracts available for purchase on major players such as Google, Amazon, JP Morgan and Coca Cola.

This wide range of markets means that it is nearly always possible to find an opportunity to take. Furthermore trading can take place on your account wherever you are based in the world, as at some point, somewhere, a market will be open for you to analyse and trade.

2. Weekend Trading

If this ability to trade a wide selection of different markets during the week is not enough, you can also opt to trade at the weekend with some brokers. While the markets themselves are closed at this time, many brokers offer the facility to place a limited amount of contracts on certain assets over the weekend. Due to the market being closed and the trader not knowing where the market will open first thing on a Monday morning, the returns offered for these trading positions tend to be high. Many of these contracts yield well over a 400% return.

While there is much more speculation involved with these positions, they nevertheless can provide a good way in which to make a high gain on your investment. You just need to select your opportunities carefully and only use small amounts of your capital when trading these outcomes.

3. Profit From Different Price Outcomes

While binary options trading is often thought of as profiting from a higher or lower movement of an assets price, there are in fact many ways in which they can be used to capture market moves. While the Call and Put option are the most easily recognisable of the binary trade, there are an increasing number of new contracts now available. These will allow you to profit from a range of different market outcomes.

The most popular of these newer contracts are the One Touch and Boundary range. The key benefit of these is that you can use them when no trends are present and markets are simply looking to ‘mark time’. These provide a further way in which you can use binary options to keep building up the value of your investment over time.

Before you decide to jump into foreign exchange market as a broker or as an investor, you must acquire a basic knowledge of how this market operates and the terms used in it. The foreign exchange market never shuts down and operates 24 hours a day on all working days. It is the largest liquid financial market. It’s not like a typical ‘market’ or stock exchange. There is no central trading location. All the transactions are conducted over the telephone or electronic foreign exchange trading networks. The ‘interbank market’ is the primary market for currencies. First of all, remember foreign exchange has been abbreviated to ‘forex’ and ‘FX’ by the people who are active participants in foreign exchange trading. Here is a list of the basic terms used in forex trading.

• Exchange Rate: The exchange rate expresses the value of one currency in terms of another. For example, AUD/JPY = 88.6348352. This means, 1 Australian dollar is equal to 88.6348352 Japanese yen.

• Currency Pair: The two currencies shown in an exchange rate are called a ‘currency pair’. The first currency is known as the ‘base’ currency, and the second one in the pair is called ‘counter’ or ‘terms’ or ‘quote’ currency.

• Currency Codes: There are eight major currencies which are traded in the forex market. There is a three character code that denotes the country. The major currencies are;

USD = US Dollar
EUR = Euro
JPY = Japanese Yen
GBP = British Pound
CHF = Swiss Franc
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar

• Lot: The standard unit size of a transaction. A 100,000 units of the base currency are called a standard lot. If its 10,000 units, traders refer to it as ‘mini’ and 1,000 units are called ‘micro’.

• Pip: This is the smallest unit in price quote for currency. Beginners will note that forex traders quote currencies with 4 decimals. For example if a price is quoted as 1.2345 the last digit ‘5’ is known as ‘pip’. If it goes up by 3 pips it would be 1.2348.

• Bid and Ask Price: The bid price is the price at which the forex market will buy a particular currency from you. The ask price is the price they are ready to sell a currency to you. The market makes money when the ask price is higher than the bid price. The difference in the two prices is known as the bid/ask spread.

• Sell Quote / Bid Price: The sell quote is the currency on the left of the pair known as the base currency. For example, if AUD/USD = 1.0532/03, this means you can sell 1 Australian dollar at the bid price of US$ 1.0532.

• Buy Quote / Offer Price: The buy price is displayed on the right of the currency pair. This is the price at which you can purchase the base currency. It is also known as the market maker’s ask or offer price. For example AUD/USD = 1.0532/03 means that you can buy 1 Australian dollar for US$ 1.0532.

Once you are familiar with these basic terms of forex trading you can take the plunge and learn more advanced terminologies and how this unseen market operates.

In simple terms FOREX or foreign exchange trading is simply that, trading in foreign currency. You can trade one currency for another. For example, you can trade between the Euro and the dollar or vice versa or between any other currencies. The world is open to you. It is easy to start trading in FOREX, all you basically need is a computer, an internet connection, some basic knowledge about the market and obviously, some money. In the foreign exchange you can trade 24 hours a day, five days a week at any amount. You don’t need to have a lump sum of money to start trading, you just need to have enough to allow you to trade and turn a profit.

Some points to keep in mind when trading

If you are trading in the foreign exchange market and are doing well and want to keep your advantage then there are some points to keep in mind. Always know the market. Study it, so you know what is going on.

Always have a plan in place. Know when to get in to the market and when to step back. Always use your head and your research, never your gut or instinct.

Never invest all your money in one place. Always keep a certain percentage aside for each trade. That way if you incur a loss you wouldn’t have lost everything. Also, if you lose in a certain area then pull out and don’t invest in that again. Move on.

Always trade with the trend and never try and think you can beat the market. The market is always right and you will do well keeping that in mind.

Never try and make a profit in all your trades. Just ensure that you keep a good and positive balance between your winnings and your losses.

Lastly, you might have heard and noticed that all successful traders usually buy when they hear bad news and sell when they hear good news. So why not give it a try? After all it is working for them.

Further advantages

Another advantage of trading in FOREX is that you can enter and leave the market whenever you like. You are not bound by anything. The foreign exchange market is also the most liquid financial market there is and therefore, over three trillion dollars are traded on a daily basis.

You are here because you want to know more about how to trade foreign currency. Foreign currency, also known as foreign exchange, or FX as it is most popularly called, is traded on one of many markets collectively called the FX market. Naturally, you want to know how to make money trading FX, but you’ll also want to learn how to avoid losing money while trading FX. This is the key to successfully trading FX – trade smart. You trade smart by doing exactly what you are doing here – learning all that you can about every facet of the FX world.

One of the most important things you can do to save yourself a lot of heartache and heartburn is to learn about the forex brokerage firm that you plan to associate with. Fly-by-nights and Johnny-come-lately FX companies are creating and opening up websites every day. Not all of them are legitimate, unfortunately, and there is little recourse to the investor who unwarily opens and establishes an FX trading account with his hard-earned cash.

A reputable company will be one that has been around for years. It’s important that you read the company’s “about us” page and learn who they are, where they are located, what they stand for, and what their policies are, try to read out source forex brokers reviews and see what other traders think about them. It’s also important to learn what protections and safeguards your account will have. Also consider seeking out the opinions, criticisms and testimonials of other forex traders who have used their services to help you assess the company before you open and fund your trading account.

And speaking of funding, be certain that you know exactly what the brokerage firm requires of you. A disreputable firm may lure you in with a low initial deposit, only they neglected to clearly state that that low initial deposit was below the minimum trade. Be absolutely clear as to the minimum and maximum amounts you need to start your account and start trading with your account.

While it’s absolutely true that experience is the best teacher, it’s equally true that forewarned is forearmed. If you want to trade FX – trade smart!