Best Binary Options Trading Hours
The world of Binary Options never really goes to sleep; it is one market in the world that is open 24 hours in day and 7 days in a week. What actually happens in this market is that anyone can come and trade when suits him and then exist the market as another group of traders enter.
Yes, the market can actually get slow some times, but it never goes to sleep. The market will always be available to trade on whether you want to invest in the market at 9am on Monday morning or 11pm Friday night; the choice is yours. Moreover, binary options market is so unique that a trader can choose to trade on different assets of different classes from a single account. But the trader needs to be aware of the time each of these assets is best traded in order to make profit.
Like I said above, this is a 24 hour market but this does not mean that you should trade currencies anytime you want without caution. You must apply caution and have a strategy; this is because there’re sometimes currencies display maximum volatility and these are the best time to trade if you want to make profit.
In binary option, currency is traded on 24-hour basis, but you should be aware that other assets are not traded on 24-hour basis. In this article, I will try to point out the best time to trade binary options in order to have more chances of making profitable trades.
Best Time To Trade Binary Options
The best time to trade binary is when the “trading volume is at its highest”. Unfortunately, there is no specific time a trade must be at the peak, you have to follow some indicators, trends, news, signals, events, and of course, your best judgment to figure out when there is going to be much volatility in the market.
It is easy to figure it out if you are trading stocks; since stocks trading volume seems to be at the peak when the trading day is first starting out and just before the end of the day. But you should also know that some binary options brokers do not allow for trading underlying stocks in the first half hour of the regular trading day. What this implies is that you must be ready to trade immediately this time period has passed. If you are trading U.S stocks, it is around 10:00 or 10:30. Note that this time will vary from each broker.
Trading currencies requires a lot of good judgment from your side. In fact, the difference between a good and bad trader is their judgment. Most good traders know when to enter and exit the market and most of them follow their gut. You should target to start trading when there are lots of movements. You will see most movement when certain markets close.
Let’s take Yen for instance. If you are trading this currency, you should know that the Japanese yen is closely connected to Japan’s open market times. This means that if you are trading a pair such as USD/JPY you must know when the Japan’s trading day begins and when it ends if you want to make profit from the pair. The Japanese market day starts at 7:00 Pm Eastern Time and closes at 3:00 Am Eastern Time. You are going to see a lot of movement in the pair in half hour blocks near these times.
If you are a Euro pair trader, you should also adopt the similar strategy as yen. You must look at European trading times and know the corresponding time in your local time. The European market (Frankfurt) is open from 2:00 Am Eastern Time to 10:00 AM Est.
Commodities are more complex, this one is not for amateurs and I will recommend you stay away if you are just getting started in the world of binary options trading. It is a bit hard to determine the time to trade commodities – this is because they are universal in their trading times and are not unique to any single marketplace.
One way to determine when to trade commodities is by looking at economic events. You must be aware when some nations are about to release their news; it usually affects commodities. A nation may choose to release news that will drive certain commodity up or down. It makes analyzing and trading commodities a bit more difficult. But if you are able to figure out when commodities are most likely to move, you will give yourself a very big advantage at making huge profits.
The type of analysis involve in figuring out when to trade is known as “Sentimental analysis”. You can as well use it in other assets. Having the knowledge of when a company is going to make a major announcement can go a long way to help you trade stocks more efficiently. You will also trade currencies better if you know when a Central Bank is going to release interest rates.
There are lots of benefits when you understand the time to trade; trading in this manner will not give you a set of trading time from day to day. However, it will help you reduce the amount of time you spent on active trading each other and help you to make smart trades to get maximum rewards.