If you have finally decided to set your foot in binary options trading, you need to make sure that you come up with a plan that helps you earn the maximum profit. One aspect of devising that plan is finding out the best hours for trading.
Whether those hours will be during the day or the night, you need to be very sure about those aspects as timing can help you proliferate your profits. This is why we have discussed the best hours for binary options trading in this article so that traders can have a better insight into the best timings for stepping up their profits.
When can you trade binary options?
With such hype about the trading of binary options, it is apparent that people would have many questions relating to the trading of those options. One such question is about the hours in which you can trade binary options. For certain aspects of binary options, you can trade them 24/7 like cryptos. The other assets of binary options can only be traded when the market for them is open like binary options for equities.
The best times to trade binary options
As stated earlier, some of the assets of binary options can be traded 24/7. However, the best time to do the trading is when there is the highest number of active traders in the market as the markets are the most liquid and volatile at this point in time. This means that there will be constant fluctuation in the prices of the binary options enabling the trader to earn as much profit as one can.
Assets like currencies and commodities are a twenty-four-hour market, but there are only certain time zones in which these markets are the most active. This happens when there is an overlap between the different trading zones of the world. However, not all assets of the binary option have similar trading zones.
The best time to trade commodities in the binary options is when the markets are the most active. This differs from commodity to commodity. For example, markets of precious metals like gold and silver are the most active between 8:20 EST to 17:15 EST. Commodities of natural gas and crude oil are the most active between 9:00 EST to 14:30 EST.
Another way to trade commodities in binary options is to group them under the exchanges where they are traded. For example, the commodities for agriculture are traded during the hours of the CME, which is the Chicago Mercantile Exchange. The CME for agriculture is from 9:30 EST to 13:15 EST and 8:30 to 17:00 EST.
Stocks and Indices
Stocks are available for trading for six to eight hours during the day. It is during those hours that the market is the most active and volatile that the indicators generate a high number of signals because of the market overlap. The stock market hours for the US market are used as a benchmark to compare the different time zones of stocks in different countries.
- The time for the US Stock Exchange is from 9:30 EST to 16:30 EST.
- The time for the London Stock Exchange is from 8:00 GMT to 16:30 GMT.
- Indices have the same trading times as their related stock markets. For example, Nasdaq 100 has a trading time from 9:30 EST to 16:30 EST.
The binary options for currencies can be traded 24/7, however, its markets are the most active when there is an overlap between different time zones as it will have increased volatility. The most important forex trading markets are London, Sydney, Tokyo, and New York.
The overlap between London and Tokyo is the most significant and it is from 8:00 GMT to 9:00 GMT.
The overlap between London and New York is from 13:00 GMT to 17:00 GMT.
Another significant thing to mention is that the currency of the local time zone that is active will have increased volatility than other currencies. For example, the Australian Dollar will be more volatile during the overlap of the Asian-London time zone than the overlap of the London-New York time zone.
Worst times for binary options trading
After discussing the best times for binary options trading, it is equally important to discuss some of the worst times for you to trade in the binary options market.
For example, trading during weekends or holidays can lead you to lose money as markets and well as forex markets close during the weekends. Trading during this time can be bad as you will face a lot of slippage and unpredictability when the market reopens after the holiday or the weekend.
Another bad time to trade is when nothing is happening during the day and when the market is behaving unusually. This is because there are no opportunities to make money during these times for a short-term trader.
Similarly, trading during the release of financial reports or big news events can make you lose a lot of money in a very short time. However, if you know about this game and have a well-planned strategy, then you may earn some profits based on the predictions of these events.