When is the Best Time to Trade Binary Options

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The Best Times to Trade Binary Options

Lesson 1: The Best Times to Trade Binary Options

Welcome to our new series on binary options trading for beginners, where we will take you by the hand and show you a systematic way to trade binary options. Today we will touch on the best times to trade binary options.

Binary options’ trading involves trading several assets and making money based on the outcome of the price direction. Some of these assets are traded on a 24-hour basis: here we have currencies, commodities and stock indices. Stocks are not usually traded on a 24-hour basis. The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market.

The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market.

Trading works best when the market is bubbling with activity from traders all over the world. When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires.

Even though assets like currencies and commodities are supposed to be 24-hour markets, there are only certain times of the day when the market activity is at its maximum. This is usually when we have an overlap of the trading zones of the world.

Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.

Timing for Stocks

As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. Stocks of most major companies outside the US are traded on the US stock markets as American Depository Receipts (ADR). As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9.30am EST to 4pm EST.

However, there are other markets in Europe that are just as important, such FTSE (7am GMT to 3.30om GMT) and the Xetra Dax (8am GMT to 4.30pm GMT) in Germany. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation.

Timing for Currencies

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The forex market is most active when there is an overlap of the London/Asian and London/New York time zones. The diagram below gives a perfect illustration of this.

You also need to know that the local currencies of the active time zones will have increased volatility over others. For instance, the Australian Dollar will be more active during the Asian/London time zone overlap than the London/New York time zone overlap.

Timing for Commodities

Commodity markets are most active at the following times:

Crude oil (NYMEX.CL) – 9am EST to 2.30pm EST

Natural gas – 9.30am EST to 5.15pm EST

Corn – 9.30am EST to 1.15pm EST

Gold – 8.20am EST to 5.15pm EST

Silver – 8.25am EST to 5.15pm EST

Another way of studying the trading times would be to group the commodities under the exchanges where they are traded. As such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more actively traded from 9.30am EST to 1.15pm EST and from 6pm EST to 7.15am EST the next day.

Full information on trading hours is available on the CME Group website.

Timing for Index Futures

Stock indices are CFD instruments that measure the movement of the relevant exchanges, As such, the DJ30, NASDAQ100 and S&P500 will conform to the US markets open from 9.30 am EST to 4.30pm EST, and the DAX30 will conform to that of the Xetra Dax’s trading hours.

Once you master the trading hours for each asset, you are one step away from potential profitability in the market.

What’s the best time to trade on binary options and can you make a lot of money?

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1st. Usually traders does not like low volume market( small movements in small range), since majority of them want to take the advantage of reversal .( that is the most rational way of trading).

So they search for the specific hours where the volume is the highest.

There are 3 major exchanges that I would consider:

The maximum movements of the market happens during the overlap of London and New York session. ( workers of London exchange already woke up, and NewYorkers already came to the offices , LOL)

I personally trade from 13:00 ( GMT) till 20:00( GMT) as the lastest. ( I .

Best Time to Trade Binary Options

Beginners guide to the best time to trade binary options: timing for stocks, timing for currencies, timing for commodities and timing for index futures. Here you will find important tips that will show you how to be successful and start your career at online binary options trading.

As a beginning you should know that binary options trading involve several assets that you will be trading and eventually be making money out of those trades. All you have to do is to predict the price direction. You can choose on what basis to trade the assets – most of them are traded on 24-hour. You can choose between stock indices, currencies, commodities. Usually the stocks are not traded on 24-hour basis. The reason for this is because there are different time zones and this is why there are different trading hours all over the world.

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Typical for the market of binary options trading is that the trader makes money based on the volatility of the asset and its prediction whether the price will go up or down.

Actually this type of trading is gaining huge popularity because there are people all over the world who are trading 24/7. And as you know, when the market is bubbling and when there is a good trading activity, this means that the volatility and liquidity is generated before the expiration of the option.

Even though commodities and currencies are supposed to be traded on 24-hour basis, there are certain times when the market works at its best. Usually these times are the ones when you have to overlap the difference between trading zones.

Not all assets have the same trading hours and this is why there are various assets classes that are taking into account their own trading hours.

Timing for Stocks

Usually stocks are traded 6 to 8 hours daily. The most major stocks of US based companies are traded on the US stock market and go by the abbreviation of ADR (American Depository Receipts). This is why the United States market is usually used as the checking benchmark of the trading hours.
However, the US market is not the only one – there are other markets in Europe which are also important. Such market is FTSE (it works 7AM GMT to 3.30PM GMT), another market, based on Germany is Xetra Dax (8AM GMT to 4.30PM GMT). It is really important to pay attention to the markets and their working times.

Timing for Currencies

The time in which the Forex market is most active is between the overlap of the Asian/London and New York/London time zones. The image below shows this time.

Another thing you have to keep track on is the volatility of the local markets and the local currencies. For example, the Australian dollar will have high values during the overlap of Asian/London time zone.

Timing for Commodities

As for the commodity markets – they are active during these times;
NYMEX.CL (Crude Oil) – 9AM EST to 2.30PM EST
Silver – 8.25AM EST to 5.15PM EST
Natural gas – 9.30PM EST to 5.15PM EST
Gold – 8.20AM EST to 5.15PM EST
Corn – 9.30AM EST to 1.15PM EST

Another good way to study all those times is to group all commodities by the exchanges they are traded under. This means that the agricultural commodities (traded in the Chicago Mercantile Exchange) will be more active from 9;30AM to 1;15PM EST.

Timing for Index Futures

You have to know that stock indices are CFD instruments and they are measuring the movements of the exchanges. Such indices are NASDAQ100, S&P500, DJ30. All of them are traded on the US market and are active from 9;30AM EST to 4;30PM EST.

Remember that it is really important to master the trading hours of those assets because this will take you one step closer to profits.

Right Time To Trade Binary Options

You will learn about the following concepts

  • Completely legal and regulated way of trading
  • Great diversity of trading tools
  • Future expectations

Many people are interested in binary options trading. Unfortunately, there is not enough information on this topic that can be found. This might force many people to quit, because not everyone willing to “invest” in something he is not familiar with. Basically, we believe that now it is the best time to start with your binary options trading career, and here is why.

First of all, there are many brokers out there, which means the competition between them has never been so intense. In order to gain a competitive edge and make their platforms seem more attractive to new traders, brokers are forced to improve their conditions and start offering better terms.

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Another advantage is that some brokers provide you with the opportunity to open demo accounts so you don’t even have to make an initial investment at all – everything is free, allowing you to test some new opportunities and platforms before opening a live account. The payouts are also really high, especially if you have the necessary skills and knowledge to perform good trades. Due to the harsh economic conditions in many countries worldwide, people have been forced to look for new ways of making ends meet. This is just another reason why thousands of new traders are joining the markets on a daily basis.

If you are one of those persons who have always been interested in binary options but have avoided the markets due to the lack of regulation, then we have some good news for you. Cyprus is the home to most major brokers and it has recently implemented regulation. Thanks to the newly adopted laws, trading has become safer and should decrease the chances of scam, which were really high until a couple of years ago.

Also on the upside, minimum deposits have become really low. So, if investing a larger sum in trading has been stopping you until now – you will probably be happy to learn that now it is possible to fund your account with as low as 100$. This is another advantage over Forex, because many Forex brokers often require a minimum deposit of hundreds, and in some cases, thousands of dollars. Alternately, everyone who is interested in binary options trading will be able to generate sufficient profits without having to make a huge initial investment.

Great diversity of trading tools

The next aspect of binary options trading we will cover are the tools that traders are allowed to use. Those tools are provided by the brokers and they can vary depending on the platform you are using. Their goal is to help traders decrease the chance of losing money and generating losses. Every new binary options trader will have access to a set of tools and plenty of information that will help him become a specialist in the field of trading.

Additionally, the great majority of glitches that were considered as “bugs” in the past have now been fixed and trading has become easier and safer than ever. Most platforms are excellent and brokers offer high quality services while the payout percentages remain hefty. Due to binary options tradings immensely growing popularity, the industry is expected to continue expanding and improving, which will inevitably result in offering even better conditions and customer service.

Get involved now

Having outlined some of the major advantages, we can conclude with a high degree of confidence that now is the perfect time to enter the world of binary options trading. Binary options will most likely be the future of trading mainly because it is not as hard as trading on the foreign exchange market and people who are not that good with computers can easily handle it. All you have to do is master a couple of techniques and practice. With the help of many tools and user-friendly online platforms, and through dedication and determination, you can become a successful binary options trader – something which was much harder to achieve several years ago in the dawn of the imperfect and unregulated binary options trading platforms.

The Best Time to Trade Currencies

Trading currencies (sometimes called forex trading) is a popular way to trade binary options (not available for retail EU clients). Since currencies can be traded all day, many traders are searching for the perfect time to invest in a binary option based on currencies. This article, The Best Time to Trade Currencies, will show you the perfect time to invest in binary option based on currencies.

General risk warning
The financial services provided by this website carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose.

What is the best time to trade currencies?

The biggest difference between currency trading and stock trading is that stocks can only be traded during a certain time period, but currencies can be traded all day from Monday to Friday. So is there a time, that can be defined as the best time to trade currencies?

A stock is traded at its home stock exchange. American stocks, for example, are traded in New York, Japanese stocks in Tokyo, British Stock in London. That limits the time of the day you can trade a stock to the time its home stock exchange is opened for trading.

To invest in a binary option based on a stock as the underlying asset, you have to adapt to the stocks trading time. Binary options based on a stock are only available when the stock’s stock exchange is open.

The big advantage of currencies compared to stocks is that currencies are traded on every stock exchange. Due to the different time zones, there is always an open stock exchange on which you can invest in currencies on weekdays. This has led to the wide-spread believe that it does not matter when a trader invests in a binary option based on currencies. Unfortunately, nothing could be further from the truth.

Just like stocks go through different trading periods during the day – near the end of the trading day the trading volume is usually significantly lower, for example – currencies experience the same kind periods, just in a little different way.

To understand why and how, let us take a look at the three stock exchanges with the highest volume of currency trading: London, New York, and Tokyo.

The opening hours of the three major stock exchanges overlap at some points:

  • London: 03:00 – 12:00 EST
  • New York: 08:00 – 17:00 EST
  • Tokyo: 19:00 – 04:00 EST

These overlapping periods feature a significantly different trading environment than the non-overlapping periods: There are more traders in the market, the trading volume is higher, and the market has more volatility. As a trader, you have to actively seek the trading environment that is best for your type of trading strategy.

How to find the best time to trade your strategy

Trading strategies are very different from one another. Some work better in a fast-paced environment with high volume and high volatility. Some are better suited for quieter market environments with less volatility and less volume. Depending on which strategy you use, you should trade it during the market times that are best for it.

A trader of closing gaps, for example, will mainly be looking for exhaustion gaps. Exhaustion gaps occur during periods with low volume, when only few traders are in the market. If you are trading a similar strategy, you should try to find quieter market environments, when fewer traders are in the market.

During a time of the day when two big stock exchanges trade currencies simultaneously, quieter market environments are harder to find. Therefore, you will rarely be able to find exhaustion gaps. As a result, you will either be able to invest on significantly fewer signals or you will invest on signals of a lesser quality. Both options will reduce your profits significantly.

With a strategy like this, you should trade when only one major market is open. Luckily, you can find an ideal trading time throughout the entire time. That means, it does not matter where you live, you can always trade strategies specialized on quieter market environments with currencies.

With strategies that specialize on market environments with higher volume, on the other hand, you should do the exact opposite: You should seek out overlapping periods. They are perfect for traders looking to trade breakaway gaps and runaway gaps, for example.

The best time to trade currencies and to use this kind of strategy is from 08:00 to 12:00 EST, when the European markets and the American markets overlap. To a little lesser extent, the time from 03:00 to 04:00 EST, when Tokyo and the European markets overlap, also provide a good trading environment.

Depending where you live, executing that kind of strategy in the perfect market environment might require you to get up in the middle of the night. The better results will be worth the effort.

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