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15-Minute Binary Options

Written By

William Berg

Written By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

» William Berg Profile Page

Edited By

Tobias Robinson

Edited By

Tobias Robinson

Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.

» Tobias Robinson Profile Page

Updated

May 31, 2024

15-minute binary options are a dynamic style of trading in which the duration of each contract is a quarter of an hour. A popular choice amongst day traders, the shorter time frame means that positions are closed quickly, which allows for rapid, repeated trading throughout the day. As with all binary options contracts, there is a fixed payout after a set period based on whether the trader has predicted the correct outcome.

Read on for a step-by-step breakdown of popular 15-minute binary options strategies, as well as information on key chart indicators that can help this specific style of investing. We also list the best 15-minute binary options brokers below.

15-Minute Binary Options Explained

In binary options trading, the trader and the broker enter a contract in which there are only two possible outcomes. After the pre-agreed timeframe elapses, if the trader has chosen the correct outcome, they will win profits from the broker. If they are incorrect in their outcome, they lose their initial investment.

Example

For example, if an investor believes that an asset will go up in price within a short time frame, they could buy a 15-minute binary option. Traders buy “call options” if they feel that the price is going to increase, or “put options” if they expect the price to fall.

In this example, the trader buys a call option because they believe that the price of Bitcoin (BTC) will be higher than $30,000 at the end of a 15-minute time frame. The trader pays a $100 premium, and the broker offers a 60% payout if they are correct.

After 15-minutes pass, the price of BTC is $30,107. This means that the trader gets to keep their original $100 stake, and receives a fixed payout of $60 from the broker because the price has increased above the pre-agreed threshold.

If the price of BTC had stayed below $30,000, after 15-minutes the trade would close and the trader would lose their $100 initial deposit.

How Strategies Work

Here is a breakdown of a popular 15-minute binary options trading strategy:

• Access A Trading Chart – Most brokers provide a range of charting options to suit the needs of each trader. If this is not the case, you can access free trading charts online through platforms like TradingView. Ensure you are comfortable with reading the charts, as day trading 15-minute binary options can be fast-paced.
• Customize The Chart Times – Once you have downloaded your chart software or selected your chart online, you should change the chart settings to a “15-minute” time frame. This will allow you to see price movements in the same time frame as the binary options contract that you wish to trade.
• Add The Indicators – Next, you could add two indicators that are suitable for 15-minute binary options trading: the moving linear and the moving averages indicator. If your broker or chart service does not offer these indicators, try an alternative charting system that does.
• Choose An Asset – Once you have your chart and indicators set up, it’s time to choose an asset to trade. Bear in mind that highly volatile assets with daily swings may be more difficult to trade. You should select an asset based on your research, market knowledge and risk tolerance.
• Study The Chart And Make A Move – Now that you have chosen your asset, it’s time to study the chart and enter the market. The fundamental principle of the strategy is to look for moments when the two indicator lines cross, and enter the market in the direction the moving averages line is trending. For example, if the moving averages line is increasing, you could buy call options.
• Results – If the asset price continues to rise, and after 15-minutes it is above the pre-agreed threshold, you will receive a payout from the broker.

Pros Of Trading 15-Minute Binary Options

There are several advantages to this trading technique:

• Globally Accessible – While some brokers may not offer 15-minute binary options, those that do are available to investors all around the world. You can trade binary options in a wide range of global markets, for example stocks, forex and cryptocurrencies.
• Straightforward Strategy – By following a simple strategy and learning the fundamentals of chart movements, you can begin to trade binary options with ease. Indicators offer strong market insights into price movements, which can be invaluable when trading 15-minute binary options.
• Perfect For Day Trading – This form of trading is popular amongst day traders because the outcomes are settled within 15-minutes. You can make multiple trades very quickly, and there is no need to track asset prices for extended periods.
• Low Investment Required – When trading 15-minute binary options, the only cost is the premium per option, which can usually be sized to suit the needs of the trader. Some alternative forms of investing require traders to purchase the entire asset which can incur high costs and high risk.
• Low Risk – When trading 15-minute binary options, the cost to the trader is capped at the number of options bought multiplied by the premium per option. However, regardless of whether the trade is successful, the trader can’t lose more than their initial investment.

Cons Of Trading 15-Minute Binary Options

There are some drawbacks to 15-minute binary options:

• Fast-Paced – 15-minute binary options are a fast-paced style of trading that require a significant investment of time and focus.
• Limited Online Resources – Compared to other types of trading, there is significantly less educational content and tutorials specifically focused on 15-minute binary options trading.
• Reduced Market Integration – Not all brokerages offer 15-minute binary options. If traders want to diversify their portfolio with other asset classes, they may need to sign up with more than one broker.
• Limits On Profits – Like all binary options, if the trade expires “in the money” the profits are fixed. Even if the price of the asset soars above the expiry price agreed in the binary option, the trader will still only realize the fixed profit rather than any additional gains they might have received if they bought shares of the asset, for example

How To Trade 15-Minute Binary Options

1. Choose A Broker

Only a select list of brokers offer binary options trading. Research any potential broker before you open an account, and ensure that they offer the markets and trading types that you are interested in.

2. Set Up Your Chart

Once you have signed up with your broker, choose a chart system that works best for your trading style. Many brokers will offer comprehensive charting capabilities to their customers, but make sure that the chart system includes key indicators. Alternatively, there are many free chart options available online.

3. Fund Your Position And Trade

To start trading 15-minute binary options, you need to buy either put or call options. The cost of trading is usually dependent on the premium per option, so be sure to calculate how much capital you will need before making your first deposit.

It is also useful to check the deposit time constraints of your chosen broker, as any long processing times may delay you from entering the market at the right time.

Final Word On 15-Minute Binary Options

15-minute binary options are popular with traders because they are accessible and quick to execute. Binary options also require low capital commitment from traders, because the cost of each option is typically only a fraction of the asset price. To successfully trade 15-minute binary options, you should develop a reliable trading strategy and familiarize yourself with chart analysis techniques. See our list of supporting brokers to start investing today.

FAQs

What Are 15-Minute Binary Options?

15-minute binary options are call or put options that expire 15-minutes after the contract starts. Each binary option will have a pre-agreed expiry time, a cost per option and a fixed payout amount if you chose the correct outcome.

What Is The Difference Between Put And Call 15-Minute Binary Options?

If a trader believes that an asset’s share price is going to rise above a certain price point by a specific time, then they should buy “call” options. Alternatively, if the trader believes that the price will fall then they should buy “put” options.

Are Profits On 15-Minute Binary Options Fixed?

Profits on all binary options are fixed. When a trader buys a 15-minute binary option, they are agreeing that if an asset rises to or above a certain price the broker will pay out a profit. Even if the asset’s price doubles, the trader will still only receive the pre-agreed profit amount, and they will not realize any additional gains.

What Is The Best Strategy When Trading 15-Minute Binary Options?

One popular strategy for trading 15-minute binary options involves using a chart with 15-minute intervals, accompanied by the linear indicator and the moving average indicator. Using these tools, investors can make binary options trades based on the chart data and new price trends that they observe.