Turbo options are basically a short-term type of trading in binary options. It is the fastest form of trading and sometimes also referred to as ‘60 seconds options’. Turbo options get their name from the fact that they are traded at a very high pace, which makes it even more exciting and thus very popular. The basic principle of binary options stays the same as to choosing the direction the underlying value of an asset will go: up or down (‘call’ or ‘put’). So what else should you know? What strategies can be used and how does it work? Continue reading to learn more.
Introduction to turbo options
Trading in Turbo options is a unique experience because results are instant. Expiry times range from 5 minutes to 60 or 30 seconds and at abcOptions we even offer 15 second options on the most popular assets, like the EUR/USD. This makes that you can always get in and out at any reaction time and price level you want. Turbo options are a great way to place multiple trades in a row to lift on a temporary trend. With this fast type of trading you can earn a lot of money in a short period of time, but be aware that on the other side it is also more risky than the regular binary options (‘up/down’ or ‘digital’).
The main difference with regular binary options is the expiration date and the way it works. With up/down options fixed expiration dates/times are set and it is for you to choose at which of those expiration moments you would like to speculate on. Where turbo options get different is not only that it is a shorter period, but also that it works more like a countdown. This means that you choose the expiration time (1 minute for example) and your chosen expiration time starts counting from the moment you place your turbo option trade.
The image below shows the abcOptions Traderoom for turbo options:
Is such short term trading still predictable?
Some people doubt whether turbo options can still be considered trading or if it leans more towards gambling. It is indeed much harder to speculate on turbo options, since following the news would be too slow in most cases and the bumps in a long term trend will be game changers in short term speculations. That does not mean that it is not possible to make correct speculations and you can do so even without proper economic knowledge. In theory you can make even more profit by trading turbo options, as you can place several trades within a single trend. To give you an example: if you see your moment where a trend begins and place 4 times a winning turbo option during that trend you will win a lot more ( 4 times 80% = 320% profit ) than when placing 1 regular binary option at the same well-timed moment ( 1 time 80% profit ). To sum it up, turbo options are like the extreme version of the regular binary options.
Turbo options strategy
There are different tactics/strategies that are more commonly used on turbo options to make profit and still enjoy the excitement of fast trading. The basics come down to:
- You must follow the asset’s trend and make sure you wait for the right moment.
- Make sure you manage the risk by managing how much money you invest per trade.
Above all it is important that you feel comfortable with whatever strategy you choose to apply and make sure you don’t start trading emotional. For many traders it is difficult to keep control of themselves due to the excitement, but when you follow a strategy, it is best to stick by it. This is not just the case for short term options, but also for all other binary options.
Most traders that are successful at turbo options always do so with big trading volume. As the market can fluctuate quite a lot on such short periods of time, one can expect also incorrect trades and the need to double up on the next trade (a popular tactic in short term trading) to win back not only the loss, but also make profit and keep moving forward. In some cases one might even need to double more than once in order to keep making profit and you can imagine that you could need a high trading volume to start with.
How to buy a Turbo option?
Follow these 7 steps to buy a Turbo option:
1. Select the Turbo option type in the traderoom.
2. Select an asset from the asset column on the left. As soon as you have selected an asset the prices of the asset will be shown in the chart.
3. Select the expiry time to set the duration of the option. By default the first possible expiry time will be chosen. Press on the displayed expiry time to choose from the drop-down list another available expiry time.
4. Select the Put button, when you expect a lower price per the expiry time, or the Call button, when you expect a higher price per the expiry time.
5. The New Trade window opens up after having select Put or Call. In this window you set the (5.) amount you want to invest in the option, and the actual (7.) execution of the trade.
The New Trade window contains the following info that needs to be checked and fields to be inserted before pressing on (8.) Buy:
- Action: shows if your trade is a Call or Put option
- Strike Level: shows the strike rate for which you will purchase the option
- Expiry: shows the time at which the option will expire
- Payout: Payout percentage when winning the trade.
- Amount: how much money you invest in the option?
- In the money/Out of the money: shows you how much your payout will be in case of a winning (in the money) or a losing (out of the money) trade.
- Buy: Press the button to execute your trade.
6. When your trade is executed a Green box is displayed in the top right of the traderoom, showing TRADE SUCCESSFUL.
7. You will now find the new trade back in your Open Trades.
How to trade turbo options
The functionality of placing a trade is exactly the same for turbo options, as it is for regular up/down options. From a technical perspective, an even more steady flow of quotes is needed to make sure there are enough for fast trading. Not all assets have enough liquidity (traded upon enough), giving us the limitation that not all assets are available for turbo trading, but only the most popular currencies, stocks and commodities. Amongst traders that trade at abcOptions, the currencies are by far the most favourite assets. Please note that 15 second turbo options are only available between 09:00 and 16:00 GMT.
Any further questions?
If you have any further questions about this subject or anything else we can help you with, please don’t hesitate to get in contact with us. We are always happy to assist you via Chat and/or email.