Earn Profits In 5 Minutes On Binary Options

One of the advantages of trading binary options is the expiry time which can be very low. The narrower the expiration time limit used, the faster the profit that traders can get. This facility is certainly good news for short-term traders, especially scalpers who like to open several trading positions in a day.

In ordinary forex trading, short-term traders only earn a small profit for each trading position, where the opportunity to increase profits is only by opening as many trading positions as possible so that the profit from each position can meet the daily profit target.

In contrast to spot forex, binary options allow short-term traders to achieve large profit returns even though the duration of the trade only lasts a matter of minutes. This can happen because traders can choose their own profit percentage and capital amount. The percentage of profit and the amount of capital can be set in such a way as to limit losses or maximize profit opportunities. Therefore, it is not surprising that binary options are a favorite place for short-term traders.

Each binary options broker has a different minimum expiry time limit. Some provide a 1 minute expiry time, some even allow trading positions to take place in just seconds. Even though trading is only done for a short time, that doesn't mean it's done without a strategy. There are many binary options trading strategies that are based on the types of time frames, one of which is the 5 minute strategy.

The 5 minute trading strategy in binary options is one of the best and simplest high-frequency strategies. The main idea of ​​using this strategy is to open trading positions in market conditions that allow for a short-term reversal. This method is easy to learn for those of you who are new to binary options, because it can make it easier for you to do analysis, both technically and fundamentally. For starters, you can use charts with time frames between 1-5 minutes, with an expiry limit of 5 minutes.

Very simple and easy for beginners to understand.
The binary options strategy for trading in just 5 minutes has several characteristics, including:

Makes it easier for novice traders to learn the basics of technical and fundamental analysis.
It is suitable for forex binary options.
Generate good trading opportunities, with success percentage up to 72%.
It only involves a few trading techniques and rules.
Allows traders to open up to 20 trading positions for 1 currency pair in a day.
Trading risk can be minimized by setting the amount of capital for each option position.

Trade In 5 Minutes With News Trading

Like spot forex, trading binary options with news trading bases option placements on economic news from countries related to the currency pair being traded. To be able to analyze price movements fundamentally, many traders use the economic calendar to find out when economic news releases have a major impact on the value of a particular currency. Usually, data that has a big impact will be marked with 3 stars or 3 bulls, depending on the economic site that provides the calendar.

Usually, forecasts (predictions) on economic calendars can make it easier for you to open trading positions at the beginning of a trend. However, if you only use an expiry time of 5 minutes, it is better if you wait until the data has actually been released, because the possibility of different results from expectations is always there.

For example, the US NFP which is one of the most important fundamental data for the USD achieved worse than expected results. You can immediately place a "put" option for USD/JPY or choose a "call" option for EUR/USD as soon as the results are released, by placing an expiry time of 5 minutes.

In other words, the 5 minute trading opportunities that can be taken from the emergence of fundamental data are:

If the released data results are as expected:
Not opening a trading position.

If the released data result is better than expected:

Placing a "call" option for a currency pair whose base currency is affected by the news. (Example: take a "call" option for EUR/USD after Eurozone inflation data shows better-than-expected results).
Choose the "put" option for the currency pair whose quote currency is affected by the news release. (Example: choose the "put" option for USD/JPY shortly after Japan's GDP data reported better than expected gains).

If the released data result is worse than expected:

Choose the "put" option for the currency pair whose base currency is affected by the economic data. (Example: choose the "put" option for GBP/USD after the BOE decided to cut the benchmark interest rate lower than expected).
Placing a "call" option for the currency pair whose quote currency is affected by the data release. (Example: take a "call" option for EUR/USD after US NFP data reaches worse-than-expected results).

All open option positions are set with an expiry time of 5 minutes. This is because within a period of 2 minutes the price has not shown a definite trend, whereas if the option position is placed on a trend that has been running for more than 5 minutes, the price has the potential to rebound.

Therefore, expiry times above 5 minutes can be more risky in your trading options. In this case, 5 minutes is considered the ideal time for short-term traders to place their options according to the results of the released data. As long as the economic report that is the indicator has a large impact, this method will almost certainly bring your 5 minute option to an end in-the-money.

Trade In 5 Minutes With Technical Indicators
Of the many indicators that can be applied to trade binary options in 5 minutes, this article will choose the MA (Moving Average) to provide an example of using this strategy technically. One of the main keys that need to be considered in the use of MA is setting the time frame and MA period itself. There are 2 rules that must be obeyed by binary options traders, namely:

When the price fluctuates from the higher level of the MA to the lower position of the MA, the option selected is "put"
When the price fluctuates from the lower position of the MA to the higher level of the MA, the option that should be placed is a "call".
The implementation of the 5-minute trading strategy with MA can be seen from the example chart below:

In the price movement chart above, the 5-SMA is installed on the EUR/USD chart with the M5 time frame. The trading opportunity created from the above situation is to place a "put" option when the candle is formed below the MA. On the other hand, when the candle is formed above the MA, the option that should be chosen is the "call".

If both methods can be implemented properly for the above market conditions, then options trading will end in-the-money in just 5 minutes. If you take a trading opportunity from the SMA-5 into an option position that is opened every time a crossing occurs on the MA line, then you will be able to earn profits continuously.

Isn't this a very suitable strategy for short-term traders to make profits in a short time? Moreover, the chosen profit level does not affect the level of trading risk as long as the amount of capital used is not enlarged.

What to Consider When Trading 5 Minute Binary Options
Choosing a 5 minute expiry time limit does allow traders to make profits in a short time. In spot forex trading, observing charts at low time frames is somewhat less recommended because of the large amount of "noise" that can give rise to false trading signals.

It is also one of the important points in trading binary options with this 5 minute strategy. To overcome this, you can apply the use of fundamental or technical analysis which can minimize errors in taking trading positions.

In addition, there are several other things that binary options traders need to pay attention to, including:


1. Practice on a demo account first.

Although this 5 minute binary options strategy looks easy and profitable, not all traders can incorporate this method into their trading plans. Implementing a strategy that suits your character and personality is one of the important factors that can lead to success in binary options trading.

If you are comfortable with a trading strategy, then the process will be easier and less burdensome for trading psychology. Therefore, first make sure whether you can maximize this strategy in the trading system you are running. You can take advantage of the demo account facilities provided by the binary options broker. This method is a solution for those of you who want to test the accuracy and trading opportunities of this 5-minute strategy without endangering the safety of your trading balance.

2. Continue to carry out risk management in every opened trading position.

It is common knowledge in the trading world that there is no strategy that can produce a 100% probability of predicting the next price movement. Therefore, the possibility of loss should also be considered seriously so that traders can take into account the trading risks that can be borne. The use of a maximum of 10% of the total trading capital can be an anticipatory measure if a trading position that applies the 5-minute strategy ends up out-of-the-money.

 

3. Do not open an option position while a speech from the Central Bank leadership is in progress.

At certain times, the leaders of the Central Bank will hold a speech to announce the latest policies, which usually will greatly affect the value of the currency. Therefore, you should avoid opening positions at this time, because the words of the Central Bank leaders can be a momentum driving price changes in a direction that is difficult to predict.

4. Avoid overtrading as best you can.
Even though trading binary options with an expiry time of 5 minutes takes place quickly, it does not mean that you are encouraged to immediately open a position again as soon as your trade ends. Whether success or failure, it's good if you wait for the right momentum to re-enter the market. In this case, taking advantage of major news fundamentals or waiting for a candle to form below or above the MA line, can be a trading signal to place a new option.

Conclusion
The binary options facility that offers a short expiry time is one of the ease of trading that short-term traders can take advantage of. Here, option positions that last only 5 minutes allow you to harvest profits in no time.

Money management and trading risk settings in binary options can also be done more simply, by determining the amount of capital and the level of profit you want to achieve. Thus, this method can be said to be a better trading management method than spot forex, where you have to measure the percentage of capital and take stop loss levels to minimize losses that may arise.


If previously many said that trading with a low time frame would cause a lot of "noise", you can still anticipate it by conducting trading analysis both technically and fundamentally. Closing the option position, which is done automatically by setting the expiry time limit, will prevent you from floating conditions and can quickly secure your profit.