As a binary options trader, you profit when you correctly predict the direction of an asset price. Volatility is therefore essential to maximize the chances of you increasing your return on investment Studies have shown that the most active trading hours occur during the European session. In the US, trading activity picks up sharply around 8:30 am EST. This is due to the release of closely watched US economic data, which generates the liquidity and volatility needed for the underlying assets to reach its target price before the option expires.

Prices become most volatile when the US releases its monthly non- farm payrolls report on the first Friday of every month. In contrast, markets will be less active and liquid during major holidays in the US and Europe, resulting in subdued trade.