Binary Options Trading

How to make money in 1 hour with Binary Options

Binary options offer an opportunity to make money in a single hour. Of course, many forms of traditional trading allow for profit in an hour, but generally the degree of profit is quite limited. Binary options, on the other hand, offer high payouts on contracts that generally do not exceed an hour in length.

Binary options are very simple. They are, in essence, a contract in which the trader predicts whether an underlying asset will increase or decrease in value over the life of the contract. How the asset price moves during the contract is unimportant – all that matters for the sake of determining whether a contract expires in-the-money or out-of-the-money is whether the price when the contract expires is higher or lower than it was at purchase.

A binary options trader finds an asset they’re interested in, and finds a contract on it. Most binary options contracts have a starting length of one hour, and as time passes that length shortens – generally platforms allow traders to purchase contracts down to fifteen minutes before expiry, although some allow purchases as close to five minutes before expiry. Once a binary option contract has been found, the trader purchases either a Call contract (if they believe the price will end higher than at purchase) or a Put contract (if they believe the price will end lower).

When the contract expires, if the binary option trader purchased the correct contract, they have finished in-the-money, and generally receive a payout of between 155% and 180% of their initial investment. If they purchased the incorrect contract, they have finished out-of-the-money, and lose their initial investment, often receiving 10% to 15% back.

This high payout means that a binary options investor can make a sizable amount of money in a single hour. For example, if an investor sees that an announcement was made that is likely to increase the price of Gold, they might log in to their binary options platform to find a contract on Gold. They might find one with 47 minutes remaining, with Gold at 1104, with a payout of 170%. Believing the price will go up, they purchase a $1000 Call contract. Over the next 47 minutes the price might fluctuate, going up and down as the market adjusts to the data, but at the end of the 47 minutes it ends at 1104.7, so they have finished in-the-money and receive a payout of $1700, for a profit of $700 in less than an hour.

Because contracts are so short on binary options, many people who are just getting into trading, or do it in their spare time find it ideal. In an hour a day a trader can in theory make a lucrative living, as they develop strategies and become better acquainted with what fundamental events impact asset prices. Over time a simple hour a day can be enough to realize large returns with binary options trading, especially if in that hour multiple contracts are purchased to help hedge against losses and to better cover the movements of the market.