How to Trade 3 Types of Binary Options at TradeRush
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TradeRush is one of our favorite brokers. They have a lot of great features including match bonuses on initial deposits up to 50%, payouts up to 81%, a low minimum deposit ($200 or equivalent), and flexible trade sizes. You can trade as little as $5 on 60-second options and as little as $10 on all other trade types. You can open a demo account with TradeRush to practice before you dive in with real money, which makes them an outstanding broker that goes above and beyond. They also provide their services to traders in the USA, and not that many binary options brokers do that either.
- Binary Options
- One Touch
- 60 Second Options
TradeRush is powered by SpotOption, which is the most popular binary options platform in the world. If you have traded with other binary options brokers in the past, there is a pretty good chance you have already traded using SpotOption’s software, which is simple and intuitive enough that you can learn to use it in minutes if you don’t already know how.
When you navigate to the “Trading Platform” page on TradeRush using the tabs across the top of the site, you’ll see the SpotOption platform and the different types of trades: Binary Options, Option Builder, OptionPro, One Touch and 60 Seconds. Only the Binary Options, One Touch, and 60 Seconds are technically types of trades. Option Builder and Option Pro are more like ways of trading.
Binary Options – Up/Down or Call/Put
Binary Options are the most basic type of trade you can place on TradeRush. They are sometimes called “High/Low,” or “Call/Put” trades. With these trades, you look at a given underlying asset, and then you either “Call” or “Put” based on whether you think that the price is going to go up or down respectively. Here is an example of a Binary Options trade on TradeRush.
You log onto TradeRush and you see a Binary Options trade available for USD/JPY. A small graph shows you what the currency pair has been doing in terms of price lately. You believe that the price of USD/JPY is going to rise within the expiry period, which you can find listed in the upper right-hand corner of the option. Let’s say that the option will expire in 2 hours and 28 minutes. You click on “Call” because you believe the price is going to go up, and the option will expire at a price which is higher than the current price at that time.
Next, you need to enter in how much you want to invest. You’ll see a conversion which tells you how much money each unit is worth. You then enter in the number of units you want to invest in the trade, and you’ll be shown the max payout below. Remember to calculate the out of money reward you can expect so that you properly determine your risk for your trade. Then you click on “Apply.”
After you are entered into the trade, you wait the two hours and 28 minutes for the trade to expire. When the trade expires, one of two things will happen. Either you will expire “in the money,” (meaning price is above what it was when you originally entered the trade) and you will receive the payout, or the trade will expire “out of the money,” (meaning price is below what it was when you entered the trade), and you will receive the out-of-money refund.
One Touch trades are another type of trade offered by TradeRush. With this type of trade, trades may only go in one, pre-set direction, which may be up or down, depending on the trade being offered. The goal of a One Touch trade is for price to hit a certain goal rate before expiring. If your chosen asset reaches the goal rate listed within the time limit, you win the trade. If it fails to touch that point, then you lose the trade. Here is an example of a One Touch trade on TradeRush.
These trades are available for purchase on the weekends when the markets are closed.
Right now on TradeRush there is a EUR/USD trade listed which has a 750% return for a successful investment. You will see the little graph under the asset, and next to it, you’ll see the direction of the option, the goal rate, and the percent return. This is listed as a Call asset with a goal rate of 1.36. An expiry time in the upper right-hand corner lists 2 hours and 20 minutes. If you purchase this asset, you are wagering that EUR/USD will touch the goal rate of 1.36 by the time the trade expires in 2 hours and 20 minutes. These are ‘exotics’ or exotic binary options.
If you want to enter into this trade, you need only enter your investment amount and click “Apply.” As with Binary Options, you will see the unit conversion listed, as well as the maximum payout. Enter in as many units as you want to purchase, but don’t forget to calculate your risk first. You should always make money management decisions based on what you can stand to lose—not just what you hope to win!
If in this situation, EUR/USD reaches or exceeds 1.32 by the time the trade expires, you will win your trade and receive the payout based on the amount of money you invested. If on the other hand, EUR/USD does not reach 1.32, even if it moves in the direction of your trade, you lose the trade.
60 Second Trades
60 Second Trades are actually a specific type of Binary Options trade on TradeRush. These trades are just like other High/Low or Call/Put trades, except that they have extremely short expiry periods, lasting only one minute. They work the same way as other Binary Options trades. You select an asset that you’d like to trade, enter in the investment amount, select “Call” if you think price will close above the current level, and “Put” if you think price will close below the current level. Then you hit “Start.”
Trading 60 Second options poses some unique challenges. Not only do the trades move quickly when you are in them, but they also move quickly before you enter them. Keep in mind that while you are filling out the details of the trade like your investment amount, time continues to move along, and price moves with it. By the time you hit “Start,” conditions could be different.
The 60 seconds starts when you hit “Start,” and not when you first spot a trade opportunity. So in order to be good at this, you have to be extremely fast. This makes demo testing extra important, because the last thing you want to do is lose money because you made a foolish mistake filling out your investment amount because you didn’t know how the platform works.
With 60-second trades, you can make or lose a lot of money through very small price movements. With a currency trade, that move might be only a few pips. As an example, say that USD/JPY is trading at 96.20. If you “Call” and enter a 60 Second trade, you are wagering that the price of USD/JPY will be trading somewhere above that value at the end of the 60 seconds. Even if price barely moves, you could win or lose. Maybe at the end of 60 seconds, USD/JPY is trading at 96.22. If so, then you win the payout value. But if at the end of the 60 seconds, USD/JPY is trading at 96.19, you lose your investment.
Since price is always fluctuating to some minor degree on a nearly constant basis, it can be very tough to predict tiny little price swings. The majority of traders aren’t very good at it. Some excel at it, however, and maybe you will be one of those traders. It is better to learn with the longer term Binary Options trades first.
Also explore the Option Builder and Option Pro features on the platform. Option Builder is a special type of option where you are allowed to select an expiry time yourself instead of work with a pre-determined list of expiry times. This can make a huge difference in your profitability and give you far more opportunities to trade and win. Option Pro is an enhanced version of the platform which shows you a more detailed graph. It is still recommended that you download some more advanced charting software to plan your trades however.
Also take some time to learn about rollover, double up, and Buy-Me-Out, features which can help you gain further control over your trades. With rollover, you can stay in a trade past the expiry time, and may have a chance to win more money. Double up is exactly what it sounds like, a way to double your investment in a trade. Buy-Me-Out lets you exit a trade early to cut your losses, but is only available for trades which are longer than an hour (within an hour of expiry, you cannot utilize Buy-Me-Out).
As you can see, TradeRush offers a number of truly exciting trading opportunities. Whether you’re interested in trading traditional Call/Put Binary Options, One Touch Options, or 60 Second Options, you’ll find tons of chances to win, and at outstanding payout rates. Get started with a demo testing account and see what you can accomplish before trading live!