Best Time To Trade Binary Options : Avoid Worst Market Hours
Are you looking for the best time to trade binary options?
Exactly the same happened to me when I first decided to trade options. Weekend trading is lucrative, but the techniques are a challenging game. Similarly, binary options are not just about choosing an asset and predicting its direction.
There are more!
But in today’s article, we will describe what is the best market hours for binary trading, weekend trading, and so on.
So, grab your chair; there is more to know!
What Is Binary Options Trading?
If you are just a beginner in the trading world, binary trading will bring good luck to you. But the lucky charm is undeniably in your hand. You should know how to trade well in a volatile market. Also, familiarize yourself with the basics of binary options trading.
Let’s begin here.
Binary options trading is a contract that is based on future predictions. That means you need to predict the asset price before opening a position. If your prediction proves right, you will get the investment amount, including the pre-set payout ratio.
But if your prediction turns out wrong, you will lose your investment.
It is possible to lose money with or without concern, even though it is the simplest method. Because it is important to understand how and when the strategy works. Even the trading time frame is also a crucial part of binary trading.
If you’d like to know more about binary options trading, you can read our article on what binary options are. We have covered everything one should know before starting trading, with examples.
What Is Trading Time Frame?
The trading timeframe is a period where trades take place. It could be anytime without any barrier, depending on the asset you choose to trade. Moreover, it is significant because, depending on it, a trader decides when to buy and sell an asset.
Especially for short-term traders, it will open up many opportunities.
Now, it’s time to find the best trade time. On the other hand, you will find multiple trading timeframes for each asset class and time zone.
We will describe them one by one in this article.
Why Is Market Hours Important For Binary Traders?
The short time frame of binary options makes them popular. And this is the reason why the time frame is so vital for binary traders. If you are a day trader, you must have to close the deal before the market closes. So, earning money with a short-term strategy is the best call for you.
On the other hand, other traders also open and close positions based on clock movements. Though you can trade binary options 24/7, not all trading assets remain open. And it is the hardest truth.
Like, the stock market is open for a certain time.
Also, there are some points you should note, such as
- Different time zones matter in trading
- Trading instruments play a vital role
- Market volatility
All these notes you should remember while trading binary options.
Now, let’s figure out the best time to trade binary options.
Best Time Frames To Trade Binary Options
Are you wondering how it is possible to determine or fix a time to trade binary options? Excited to inform you that, yes, it is possible. We will only recommend timeframes once we know what you’re trading. So, do not take this as financial advice.
Ask why!
Because some traders can cope with highly volatile markets, some traders are experts at news trading. Similarly, some can control low volatility. All these are possible if you can fix a strong strategy.
Visit our strategy section to learn more about profitable strategies.
On the other hand, you know that the trading form will let you trade 24/7, even on weekends. But for certain assets, the market is always open.
Ideally, the best time to trade binary options is when the market is active. Overlapping market hours increases the number of active traders. Moreover, it causes the market to be volatile, like when both the European and Asian markets are open at once.
As a result, you will get the opportunity to close profitable trades.
Binary Options Best Trading Times – Expert Opinion
Without pointing to any specific timezone, the ideal recommendation is to trade options when the market gets volatile. In other words, the active market hours is the best fit to trade options.
But experts have another opinion. According to them, you can trade anytime with a strong trading strategy. On the other hand, having a trading plan will help you smooth out your trading journey.
According to experts, let’s see some favorable trading times to trade binary options.
• When big events or news takes place:
How you use your time is up to you. News trading is profitable, but you will lose money if you don’t know how to close the deal. Depending on the events and their consequences, you must decide when to trade; before, after, or in the middle.
• Weekend trading:
You will love trading on weekends or holidays if you find the right taste. If you can’t control slippage and the unpredictability of the market, you will lose money. As a result, most experts consider this time to be a risky trading day. Rather they use these days to plan the next trades.
• Middle of the week:
It is a good time to trade. You will find less unpredictable market conditions if you start trading in the middle of the week.
• Overlapped hours:
When two markets open simultaneously, known as overlapping hours. For short-term traders, these hours are suitable. You will find the highest number of active traders at this time. Moreover, there are more opportunities when there are overlaps because the price ranges are higher.
However, no matter when you decide to trade, make sure you check the economic calendar properly and review your trading journal. Additionally, take a test drive with real data before experiencing live trading.
Best Time To Trade Binary Options By Asset
You need to find the right trading time, though binary trading allows you to trade 24 hours, even on weekends. On the other hand, finding the finest hours to trade would be best depending on the instruments.
By asset, let’s determine when is the best time to trade binary options.
1. Stocks & Indices:
Surprisingly, the stock market remains closed on weekends and holidays. Both the Nasdaq and the New York Stock market close at 4 p.m.
New York Stock Exchange Hours:
A regular business day at the NYSE consists of the following:
- Standard Trading: Monday through Friday from 9:30 a.m.–4 p.m. EST.
- Pre-Market Trading: Monday through Friday from 8–9:30 a.m. EST.
NASDAQ Stock Exchange Hours
NASDAQ also has regular trading hours, like:
- Standard Trading: Monday through Friday from 9:30 a.m.–4 p.m. EST.
- Pre-Market Trading: Monday through Friday from 8–9:30 a.m. EST.
London Stock Exchange Hours:
Note that the LSE or London Stock Exchange is not open to the public. You need need to be a member of the London Stock Exchange to trade there. LSE regular trading hours, like:
- Standard Session: Monday through Friday from 8:00 am to 12:00 pm and 12:02 pm to 4:30 pm. GMT.
- The Pre-Trading Session is from 5:05 am to 7:50 am. GMT.
2. Forex/ Currency:
Forex or currency market remains open all the time. Binary traders can trade options on Forex at any time. However, there are some active times when global traders actively trade. On the other hand, there will be an overlapping hour between the two market sessions.
Yes, it is the best time to trade for binary options traders.
Let’s have a look:
If you count the regular market hours, then the currency market opens on Sunday at 5 P.M. ET and closes on Friday at 5 P.M. ET
- Sydney is open from 5 pm to 2 am EST
- Tokyo is open from 7 pm to 4 am EST
- London is open from 3 am to 12 am EST
- New York is open from 8 am to 5 pm EST
3. Commodities:
If you want to trade options on the commodity market, remember that active hours are ideal. However, just like the currency market, it is also open 24 hours, five days a week. The regular market closing hours are from Friday evening to Sunday evening.
Note that there is no global session for commodities. The most effective trading time is determined by the products. Like:
- Corn 9.30 EST to 13.15 EST
- Crude Oil 9.00 EST to 14.30 EST
- Silver 8.25 EST to 17.15 Est
- Gold 8.20 EST to 17.15 EST
- Natural Gas 9.30 EST to 17.15 EST
Is Weekend Trading Available For Binary Options?
In our earlier point, we mentioned that weekend trading is a boon for binary traders. Your broker will allow you to trade on a specific asset list. However, the market acts differently at weekends. That’s why it is not a piece of cake. It would be best if you held your position with solid strategies and plans.
Don’t worry.
You just need to spend hours learning how to trade the weekend market. On the other hand, if you take trading as a passive launcher, you will get time to understand the market game on weekends. As a result, you can pay more attention.
On the flip side, some drawbacks are there that you should note:
- Weekend will allow you to trade on limited assets
- Stocks and indices are not available
- Not all brokers allow you to trade on weekends
- Not a healthy market to conduct trade
Conclusion
Traders of all levels can trade binary options because it’s easy. A popular trading method gives you the highest payout if you know the best time and strategy. Moreover, trading multiple instruments will allow you to diversify your portfolio.
Whether you’re a day trader or a position holder, you can make money. That’s why we consider binary options as an opportunity.
So, apply strategy and keep trading.
