Interestingly, if your prediction is right, you are entitled to a predetermined payout. This figure in most of the cases can be anything between 60% and 70% on the investment money in addition to the money you have invested in the trade. However, if you are not able to predict the price of the underlying asset correctly, you not only lose your investment, you also get deprived of the payout or the bonus that you could have won had you predicted the price of the asset that would be attained 60 Seconds from the current time of trading.
What are the advantages of this type of option?
One of the main advantages of the 60 Seconds binary option is that you can trade as many times as you want. In other words, you can trade every second and consistently. This will enable you to enjoy profits that you might earn between trades and you take every opportunity to win your payout. And in the event you are trading more than one asset, you will get opportunities galore to earn profits every minute or rather every second. All you have to do is select, which option is better, the call or the put option. Since the expiration time you are opting for is less, you get more chances to trade and earn profits.
Another advantage is that when you take the plunge in the market, it might so happen that the EUR/USD is going strong. And before it takes a downward trend or the profitable scenario reverses, you win your money and exit the trade, thereby not losing any opportunity to win the payout.
What are the disadvantages?
The grass is always greener on the other side. But this is not always the case. Just as this form of trading allows you to earn a lot of profit when you are able to predict each trade status correctly, if the reverse happens, that is if you are not able to predict the figure correctly, chances are that you will lose all the money. It has also been observed that the payout that trading platforms shell out to traders is lower as compared to the payouts when you opt for trades with higher expiration dates/time. So, you tend to lose excellent opportunities in other types of option trading. The payouts in some binary option trading can be as higher as 90% and can usually range between 85% and 90%. So, you don’t get an opportunity to earn profits from these trades since you are so engaged with the tendency to gain profits on a short term basis.