In order for a trader to gain the maximum benefits from the 5 minute binary options trading, they need to identify and work with the most suitable binary option platform that can be found. There are many platforms which can be used, but the ones recommended for this type of option are 24option, TradeRush and StockPair. Furthermore, they can both be downloaded and used on the mobile phone, which makes the trader’s life a lot easier.
The life of 5 minute options has been developing for some time now. Brokers have spent a lot of energy on research, making their traders happy. They believe, the more things you can do with their platform the happier you’ll be. In most cases this is true. However, it is very important to understand the risks of 5 minute binary options. If you’re not readily prepared for them, you should move up to longer timeframes such as 10 or 15 minute binaries.
The great thing about 24options 5 minute trading setup, is that the timer starts immediately after entering the trade. Know matter when you enter the market, the strike price has to be beat at the end of 5 minutes or 300 seconds. Although this is a pretty simple concept, it does take some people a while to understand. It’s just like the 60 second trading we discuss on this website, but longer. We highly recommend you test this style on a demo account before risking any money.
Some other notes to consider with this trading method are the payouts. A lot of the times brokers will lower the payout rates to 70%-75%. This gives the broker a huge advantage compared to a longer trade at 85%. Ideally you only want to trade this style if you see a prime trade setup. If you don’t think price will keep moving in your direction after 5-10 minutes then a trade using a five minute option can be considered. Always remember your risk level and try not to over trade.
Most brokers have 10 or 15 minute binaries in which you have to enter before you get to the 5 minute countdown. Make sure you consider this as well. Nice setups can show up on longer time frames, but you can still enter near the five minute mark. You’ll also get a better payout rate. In this type of trading, the higher the rate, the better. This allows you to risk less money when seeking the same amount. In time you’ll learn what works and what doesn’t work for you and your trading. Pay attention to the details and practice.