When you purchase a binary option (also known as digital options)you will state how much you are willing to invest and you will be told how much you are set to earn should you be right in speculating on price closing above or below the strike price. This amount never changes once the binary option has been purchased regardless of the degree that price closes above or below the strike price. Similarly, as an investor you always know exactly how much you are set to lose before you even enter the trade.

So, the attraction with binary options is their simplicity and all-or-nothing outcome. Many traders find it easy to speculate on whether price will rise or fall but harder to try to work out exit strategies or how much profit or loss to take. Binary options work this out for you with their closing price determining the profitability of a trade. These expiry times are typically between 5 minutes and 1 month depending on the type of trader that you are. However, there are also binary options provided by one company which allows for 1 minute trading.

60 second trading with options was previously considered almost impossible due to the speed that information would need to pass between brokers operating on multiple contracts with thousands of client. Luckily, modern technology and the advent of the web-based trading platform allow previously complex transaction and derivatives markets to exist and trade incredibly quickly on real-time data. 60 second binary options’ trading therefore allows an investor to purchase options with an expiry time in one minute. Ideal for scalpers, these short-term options are for fast-fingered traders who see price movements on a very short-term scale. Fast-moving markets benefit from these options as traders can quickly enter and exit simply needing price to remain above or below the strike price for the 60 second duration.

One pioneering broker currently offers 60 second trading and was launched in 2011 due to the demand from the trading community to provide short-term binary options. TradeRush.com  offer up to an 81% return on their 60-second binary options. This means that for every $100 you invest for that one-minute your position will close either ‘in the money’ with £180 return, or ‘out of the money’ with around a $15 return. The basis for having money returned even if your investment fails to close in the money is a ‘protection rate’ which most brokers generously offer between 10-15% of your initial investment.

The benefits of trading such fast-moving options is, as Traderush.com advertise, knowledge is power. The frequency of, for example, news stories causing price to swing dramatically in one direction is great for all traders who like to trade fast moving markets. However, they are also incredibly risky- not only getting caught on the wrong side of a trade and then fighting to get out but also in trying to establish an exit once you are in the money. Binary options obviously have the benefit of removing both of these dilemmas. You can only lose as much as you agreed before taking the trade and you can also only win as much as you had agreed. For 60 second traders this removes a large element of thought from the trade and means that those who are particularly good at spotting short term trends or the high-likelihood of a swing in one direction for several minutes this becomes an excellent trading tool.

60 second binary options’ trading is therefore an excellent trading tool for news traders and also for technical analysts who can operate on very short-term charts. Some candlestick analysts would also benefit from trading on micro timescales and binary options with just a one minute lifespan would be ideal for this. Due to the fact that many spread betting firms rarely provide charts with enough detail to trade on a-one minute chart; often many scalpers have to make do with 3-5 minute charts.

The provision of detailed one-minute charts, as well as fast execution mean have attracted a lot of scalpers from spread betting to binary options with Traderush.com. Although it is, of course possible to open a spread trade and close this within one minute, because spread betting relies on the degree of profit or loss to determine how much is made or lost it can be risky and also fairly pointless to trade such short moves unless your stakes were considerably large.

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The negatives of trading such short-term charts are basically the same for all speculation. Binary options do carry risks and these are often enhanced with the lower timeframes. The adrenaline and excitement of trading for considerable gains can be difficult to contain and the sheer number of trades that are possible in any one day make it very much a trading tool for those who have good trade discipline. The need to have a plan and a limit on the number of trades per day as well as a good idea of how much you can afford to risk are essential for 60-second trading. The limit of $100 per trade with Traderush.com goes some way to limiting this, although this is still potentially $6000 per hour!

60 second binary options have revolutionised trading and pushed online trading technology to the limit. The need for reliable connections and prices underlies the entire market. Whilst many struggle with trading on the 5 minute charts, there are many who are particularly good at spotting very short-term opportunities and using binary options will allow them to be profitable regardless of the degree to which the trade moves in either direction. As a straightforward and simple way to trade, binary options remove many of the difficult questions concerning exits, losses and profits. These are all predetermined allowing trades to focus only on the direction-up or down?

U.S. Dollar Trading (USD) markets came under heavy selling pressure across the board overnight as German Official Seibert cautioned the market about expecting a final solution from this weekend’s EC Summit. Adding to this was soft earnings from US companies and we saw US stocks down over -2%. The USD did well gaining against all with the exception of the other safe haven, the Japanese Yen. In US stocks, DJIA -247 points closing at 11397, S&P -23 points closing at 1200 and NASDAQ -52 points closing at 2614. Looking ahead, September PPI forecast at 0.2% vs. 0% m/m previously. Also Fed Chief Bernanke speaks.

The Euro (EUR) was hit hard by the German comments with the overbought EUR/USD reversing from 1.3900 to 1.3750. The market was looking for a reason to correct lower after 9 days of steady gains. The market is still expected quite aggressive news from the Summit on the weekend and the price action today is a warning of what will happen if they fail to deliver. Looking ahead, October German ZEW forecast at -45 vs. -43.3 previously.

The Japanese Yen (JPY) the move above Y77 on USD/JPY was once again reversed after heavy cross selling led by the EUR/JPY. The failure of the USD/JPY to continue higher above Y77 is frustrating longs who have been patiently waiting for intervention back to Y80. Risk appetite is going to remain the key catalyst short term direction but only a change in US monetary policy seen pushing the USD/JPY out of its range.

The Sterling (GBP) hit day highs in Europe at 1.5850 before reversing with the rest of the market on the German comments. The EUR/GBP fell from 0.8770 to 0.8725 as the Euro selling outpaced the Pound. GBP/USD support is seen under 1.5700 with the recent rally being under threat if this support is broken. Looking ahead, September CPI forecast at 0.4% vs. 0.6% previously.

The Australian Dollar (AUD) The Aussie led the market on the way up and when the profit taking started the AUD/USD collapsed from 1.0370 to 1.0180 in sharp selling. The outlook is mixed with speed of the run up keeping buyers cautious to buy aggressively on dips. Looking ahead, October RBA Minutes. Chinese Q3 GDP forecast 9.2% vs. 9.5% previously.

Oil & Gold (XAU) Gold tested new month highs before reversing in the US session to $1670 as daily volatility continued. Oil tested $88 in Europe but failed to hold onto the gains before reversing back to $86 a barrel.

Pairs to watch

AUD/USD China Data to support or hurt?

USD/JPY Range Trading Y76.50 to Y77.50 to continue?

TECHNICAL COMMENTARY

Euro – 1.3750                    

Initial support at 1.3685 (Oct 13 low) followed by 1.3566 (Oct 11 low). Initial resistance is now located at 1.3937 (Sept 15 high) followed by 1.4013 (61.8% retrace of 1.4549-1.3146)

Yen – 76.80

Initial support is located at 76.31 (Oct 12 low) followed by 75.95 (Aug 19 low). Initial resistance is now at 77.86 (Sep 9 high) followed by 78.60 (61.8% retrace of 80.24-75.95).

Pound – 1.5750                                                        

Initial support at 1.5722 (Oct 14 low) followed by 1.5667 (Oct 13 low). Initial resistance is now at 1.5869 (Sept 15 high) followed by 1.5991 (Sep 9 low).

Australian Dollar – 1.0180

Initial support at 1.0102 (Oct 13 low) followed by the 0.9866 (Oct 12 low). Initial resistance is now at 1.0372 (Oct 17 high) followed by 1.0440 (76.4% retrace of 1.0765-0.9388).

Gold – 1675

Initial support at 1654 (Oct 11 low) followed by 1627 (Oct 7 low). Initial resistance is now at 1704 (Aug 25 high) followed by 1726 (50% retrace of 1921.15-1532.72).

Oil – 86.25

Initial support at 85.00 (Intraday Support) followed by 83.00 (Intraday Support). Initial resistance is now at  88.00 (Intraday resistance) followed by 90.00 (Intraday Resistance).

The Euro (EUR) fell back to 1.3700 in quiet trade before reversing in the US session back to 1.3800 ahead of the G20 meeting starting today. German CPI forecast at 0.1% vs. 0.1% previously. Banks in Europe continued to come under pressure overnight after downgrades to large banks including UBS. BREAKING NEWS UPDATE Spain downgraded by S&P to AA-.

The Japanese Yen (JPY) the excitement from talk of a floor in the major on Wednesday was unwound easing the USD/JPY back below the key Y77. The market fell back to Y76.60 but found support again and will now be looking ahead to the G20 meeting this weekend where the Japanese FM will be asking for talks on the strength of the Yen.

The Sterling (GBP) the GBP/USD was down then up with the general market moves. August Trade Balance improved to 7.7bn vs. 8.2bn previously. The EUR/GBP has found resistance towards 0.8800 and is easing back below .08750 in gentle selling. The recent cable rally is reaching critical levels near 1.5800 -1.6000 which has proven pivotal in recent months.

The Australian Dollar (AUD) tracked the European stocks lower before rallying back to 1.0200 in the US session as the buyers came in on the dip. Today’s Chinese CPI number will be critical in whether the AUD/USD can extend recent gains with the market now 800 pips off lows seen two weeks ago. AUD/JPY is holding above Y78 and is well supported.

Oil & Gold (XAU) was not interested in extending gains as most majors fell back due to profit taking in Europe. Gold found support eventually at $1650. Oil was under gentle selling pressure most of the day falling back to $83.50 before finding support.

Pairs to watch

AUD/USD China CPI to move the Aussie?

EUR/USD Downgrade of Spain to hurt rally?

TECHNICAL COMMENTARY

Euro – 1.3755                    

Initial support at 1.3566 (Oct 11 low) followed by 1.3346 (Oct 10 low). Initial resistance is now located at 1.3937 (Sept 15 high) followed by 1.4013 (61.8% retrace of 1.4549-1.3146)

Yen – 76.95

Initial support is located at 76.11 (Sep 22 low) followed by 75.95 (Aug 19 low). Initial resistance is now at 77.86 (Sep 9 high) followed by 78.60 (61.8% retrace of 80.24-75.95).

Pound – 1.5750                                                        

Initial support at 1.5525 (Oct 10 low) followed by 1.5423 (Oct 7 low). Initial resistance is now at 1.5869 (Sept 15 high) followed by 1.5991 (Sep 9 low).

Australian Dollar – 1.0165

Initial support at 0.9866 (Oct 12 low) followed by the 0.9728 (Oct 7 low). Initial resistance is now at 1.0239 (61.8% retrace of 1.0765-0.9388) followed by 1.0313 (Sept 20 high).

Gold – 1666

Initial support at 1654 (Oct 11 low) followed by 1627 (Oct 7 low). Initial resistance is now at 1704 (Aug 25 high) followed by 1726 (50% retrace of 1921.15-1532.72).

Oil – 84.00

Initial support at 83.50 (Intraday Support) followed by 82.00 (Intraday Support). Initial resistance is now at  85.00 (Intraday resistance) followed by 86.50 (Intraday Resistance).