1-Hour Binary Options
1-hour binary options expire after 60 minutes, typically providing traders with either a pre-determined payout or resulting in the loss of the initial stake. The short-term contract is popular with some retail investors looking to make straightforward predictions on stocks, forex, commodities, cryptos, and other global markets.
Top 1 Hour Binary Options Brokers
Based on our tests, these are the 4 best platforms with 1 hour binary options contracts. Some of these may be offshore platforms that are not authorized where you live, even if they let you open an account.
List all Binary Options Brokers
1-Hour Binary Options Explained
Binary options are a high-risk/high-reward form of trading. An investor predicts the price movement of a particular asset, such as a stock.
- If their prediction comes true, they win a predefined amount of money.
- If their prediction is wrong, they lose their initial stake.
In essence, binaries are a form of financial betting where risks and returns are known beforehand. That said, some platforms have moved to introduce features like early closure and rollover.
1-hour binary options are simply contracts that expire after 60 minutes. They are popular because investors can take multiple positions throughout the day, meaning any winnings can be reinvested.
1-hour binaries are also provided by many offshore brokers. In fact, we checked every platform in our binary broker database, and virtually all cater to this timeframe.
Trading Example
The best way to understand how 1-hour binary options work is by looking at an example…
Let’s say I believe the value of gold will rise because I anticipate an increase in inflation which will lead to investors using the precious metal as a hedging instrument. With inflation data looming, I anticipate that the value of gold will exceed the current market value.
I take out a 1-hour high/low binary options contract with a payout of 80%. You can see this below, where I opened a binary trade on gold with a 1-hour expiry on the Pocket Option platform.
I stake $1 on the prediction. 30 minutes later the inflation data is released higher than expected which leads to the value of gold rising. This means the contract finishes ‘in the money’ and I receive $1.80 total ($1 staked + $0.80 payout).
If the prediction had been incorrect and the price of gold had fallen after the 1-hour, I would have lost my $1 stake.
Pros Of 1-Hour Binary Options
- Available on a wide range of popular markets
- Most binary platforms offer 1-hour contract expiries
- Traders can invest and reinvest multiple times throughout a day
Cons Of 1-Hour Binary Options
- Trading many 1-hour contracts might encourage overtrading and tilt
- Binary options trading is heavily restricted in some countries
- No guarantee of profits – you could lose any money you invest
Strategy Considerations
Successful traders follow a plan rather than wild speculation. To help you get started, we have listed some key tips and considerations.
Technical traders use binary charts and binary indicators to identify patterns and make pricing predictions. A candlestick chart is a good place to start for beginners. The wide part of the candlestick displays the opening and closing prices while the thin part of the candlestick shows the highest and lowest prices over a set period.
Traders can then employ technical indicators to drill down into trends:
- Triple Moving Average Crossover – This is a bullish signal, indicating that the price of an asset may rise. It is straightforward to use and overlay onto charts. It will also suit traders with less time.
- Relative Strength Index (RSI) – The RSI indicates whether a market is overbought or oversold. It provides a number between 0-100 where anything over 70 is overbought and anything under 30 is oversold. This can be useful for identifying reversals.
- ATR and ADX – The Average True Range (ATR) and Average Directional Index (ADX) help measure the strength of price movements. Together, they can be used to try and help assess volatility and trend strength. These indicators tend to generate a lot of signals.
Regulations
Although 1-hour binaries themselves haven’t been the target of regulatory actions, some bodies have restricted the distribution of binary contracts more broadly.
For example, In 2018, ESMA prohibited the sale or promotion of binary options to retail investors in the European Economic Area, a move which was eventually adopted by other bodies. This includes the FCA in the UK, which curtailed binaries in 2019.
The ASIC in Australia has also prohibited the marketing of binaries, with its ban extended until 2031, while in the US, only regulated exchanges are allowed to serve US residents.
Traders wanting to use 1-hour binaries can still access many offshore providers but it’s essential to understand that this is high risk. You may not have any legal recourse in the event of issues, nor any investor compensation in case of broker insolvency.
Tips
We have also compiled a list of tips and tricks to take into account when trading 1-hour binary options:
- Follow a plan and don’t let emotions interfere with the decision-making process
- Do not risk more than 0.5 to 2% of your total capital on an individual trade
- Use free binary demo accounts to test and refine 1-hour strategies
- Do not frantically try to win back losses
Bottom Line
1-hour binary options can be used to make straightforward predictions on stocks, forex, precious metals, energies and digital assets. Potential returns and risks are known upfront while many of the top brokers offer this contract timeframe.
However, they remain high-risk. Any money invested can be lost. And because they’re short contracts, the risk of placing too many trades a day and straying into gambling-type behavior is present.
FAQs
What Is A 1-Hour Binary Options Contract?
1-hour binary options are a derivative with an expiry time of 60 minutes. They are fast-paced and high-risk.
How Many 1-Hour Binary Options Trades Can You Do Per Day?
There is no limit to how many 1-hour binary options trades you can make a day. With that said, we do not recommend placing too many a day. Some of our team, which include experienced binary traders, only place a few targeted trades per session.