What exactly are turbo binary options? What are their benefits and drawbacks? In simple words, binary options can range from 30 seconds and 1 minute (turbos) to a full day, month and year. Scalpers opt for binaries with 1-minute expiry times to make a high number of trades in a single day.
The success in turbo trading depends on the outcome of the trend: will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. In 2008, the US Securities and Exchange Commission opened the binary options market so almost everybody could trade through an exchange. The internet and technology have since given the whole world access to these ‘digital’ options. You need the best binary options broker trading platform (for example, the Pocket Option) that meets all your requirements and who will enhance your trade performance.
If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.
As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.
Turbo options are the most profitable types contracts. Due to the shortest possible expiry time, traders can make frequent and repeated profit. Such traders who trade in turbo regime are called “scalpers”. They usually are fast-paced and geared-up individuals who think and act fast. It not for everybody because it is very stressful, so such traders are considered top-notch experts. Scalping is a method of trading that attempts to make a profit out of small price movements between assets within the forex market. Therefore, scalping forex requires traders to buy or sell a foreign currency pair, such as the EUR/USD, and then hold the position for a short amount of time, hoping to generate a small profit. Forex scalpers will then repeat this process to gain frequent returns throughout the day, taking advantage of price fluctuations of each currency pair.
Scalping indicators such as Bollinger bands, stochastic oscillators and Keltner channels work to demonstrate patterns, trends and warnings to a trader as they monitor the online forex market. Pocket Option trading platform offers plenty of popular forex scalping indicators. Trading in turbo options has some pros and cons. The undeniable attractive sides of turbo options are:
- Opportunity to make a quick profit.
- Guarantee of fixed profit if the price moves a couple of points in your direction.
- Predictability and no stop orders. You know potential loss and profit before you make a move.
- Trading on news.
If you are interested in turbo trading, register with the Pocket Option platform to learn more and test your understanding with a demo account. The Pocket Option gives beginning and experienced traders a wide range of tools for informed decision making. You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.
Here are some tips how to handle pressure and succeed in turbo option.
- Train for scalping. Scalping requires maximum concentration and focus. It can be nerve-wrecking and stressful. You need to be able to make fast decisions. Scalpers say: “A slow trader is a dead trader”.
- Focus on one currency pair or position at a time. Trading multiple positions at the same time can be difficult to properly monitor the technical charts.
- Trade during fast markets. Do not trade in a sluggish market because it is a sure way to lose money. It is advisable to only trade currency pairs where both liquidity and volume are highest. Scalping is very fast-paced and therefore major currency pairs need liquidity to enable the trader to dip in and out of the market at high speed.
- Risk management. Limit your risk to less 2% of the deposit in one position or use the Martingale method. Scalpers often have a specific temperament or personality that reflects the risky method of trading. Scalping requires concentration, analytical skills and a decent amount of patience, allowing scalpers to make hasty decisions with the hope of making a profit.
Success in turbo options trading depends on concentration and personality: traders must spot the changes straight away and close their position in order to avoid losses. The longer the position is held for, the more risk of prices moving outside the scalper’s betting range. Therefore, the majority of scalpers usually stick with the tighter currency spreads and not make too many bold choices in order to minimize risk. A scalping strategy is not advised for beginner traders, due to the level of experience, concentration and knowledge.