THE HOT WINDOW
15 Minute Binary Options Strategy
Short-term options are very popular among traders. There are many types of short-term binary options with expiry times ranging from 30 seconds, to 1 hour. A trader can find themselves indecisive when trading a 15 min or longer option due to what may seem to be a lengthy period of time, compared to say a 5 minute option. In this lesson we will cover the best use for 15 minute binary options, and a general strategy for trading them.
Short-term options trading require skill and strategy because price volatility in a short-term period tends to be much higher than prices in longer term periods. With high volatility, making a prediction in a short-term period can be a little challenging. An asset can be in an upwards trend long-term, but from the beginning of the 15 minute period to the end of the 15 minute period, drop lower than its initial options starting price. Therefore, a trader has to have a good understanding of market behavior and feel certain about his or her prediction to successfully trade short-term options. In short-term periods, the smallest activity from a single buyer or seller can make a difference. However, traders have experienced massive success trading short-term options, and most binary options traders prefer them.
It's important to keep in mind that when trading short-term options, there are no magic tricks. There's no easy way to predict if the price of an asset will increase or decrease in a 15 minute window. A trend might not necessarily mean that the price of the asset will close consistent with the direction of the trend by the end of the option period, and applying the latest and greatest strategy might not necessarily mean the option will close in your favor. Knowing the best uses for 15 minute options will sharpen your ability to use them more effectively.
High | Low
Before executing a high or low trade, it important to have a good understanding of what kind of trend the asset is currently in. Because a 15 minute period gives plenty of time for a trend reversal, your goal is to try to execute the trade at the earliest possible phase of the trend. Many traders prefer using the high and low trade options for options with shorter expiry times, however many traders found trading high or low options with long-term expiry times are easier to predict.
One Touch | No Touch
The 15 minute options work relatively the same for both One Touch and No Touch trades. Fifteen minutes gives plenty of time for an asset to touch the set price in a One Touch trade. Good analysis and historical data can make One Touch trades successful for 15 minute options. No touch trades also work in the same way similar to One Touch trades. Apply the same method to No Touch Trades as you would to One Touch trades. Advanced traders apply a strategy that uses One Touch trades and No touch trades together on the same asset. If the asset touches the price point specific to the One Touch trade, but doesn't touch the price specific to the No Touch trade, it equals a double win for the trader. In a later lesson we will cover how to use this strategy more in detail.
Boundary | Range
A high price point and a low price point create a boundary, which is also referred to as a range. A trader can invest in an option where the price of the asset
Similar to No Touch trades, these trades require that an asset does not touch the top or bottom price point by the end of the 15 minute period to be considered a win. Historical price data has proven to be very useful for Boundary and Range option predictions. When combined with good analysis and when factors like market sentiment are not affecting asset prices, Boundary and Range options trading has proven to be a successful trade type for 15 minute options. You also have the option of widening the gap of the boundary option, but keep in mind, the wider the gap, the lower the payout percentage.
Most traders do not consider 15 minute options as options in the fast-trade category compared to 5 minute options. Fast-trade options are famous for their large payout percentages and their big gain opportunities in very short-term periods. However, 15 minute options offer almost the same opportunity. Traders that develop strong research and analysis skills can trade 15 minute options to any of the trade methods mentioned in this lesson and can substantially increase their success in the same way a trader can do using fast-trade options
Keep in mind, not all traders are interested in fast trading. Many traders prefer to trade slowly and methodically basing their trades on research that gives a long term perspective. Slower trading has its advantages with decreased risks in trades being one of them. 15 minute options offer the ability to trade fast, but also the ability to trade at a slower pace making them a good fit for traders who prefer trading in that method. Your own trading style and preferences will develop over time, and you will choose methods of trading that are more to your liking.
If you're new to 15 minute options trading, spend some time really studying historical data of an asset before you start trading. Take a look at different price charts, and get familiar with MACD indicators. We hope you found this information to be useful, stay tuned for more exciting strategies coming soon.