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 paw and prove you a systematic way to trade binary options. Today nosotros volition bear upon the best times to trade binary options.
Binary options’ trading involves trading several assets and making money based on the issue of the price direction. Some of these assets are traded on a 24-60 minutes basis: here nosotros have currencies, commodities and stock indices. Stocks are not usually traded on a 24-60 minutes 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 fourth dimension 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 coin based on predicting direction, and volatility is what gives price action direction in the marketplace.
Trading works all-time when the market is bubbling with activity from traders all over the world. When there is good trader activity in the marketplace, it generates the liquidity and volatility needed for the underlying asset to get to its target before the pick expires.
Fifty-fifty though assets similar currencies and commodities are supposed to be 24-60 minutes markets, there are but certain times of the day when the market place action is at its maximum. This is usually when nosotros have an overlap of the trading zones of the world.
Considering not all assets have the same trading hours, we will hash out the various classes of assets every bit carve up entities, taking into account their own peculiar trading hours.
Timing for Stocks
As nosotros mentioned earlier, stocks are commonly traded for a maximum of vi to 8 hours a day. Stocks of nearly major companies outside the The states are traded on the U.s. stock markets equally American Depository Receipts (ADR). Equally such, the Usa 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.
Yet, at that place 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 Deutschland. If yous are trading stocks in the binary options marketplace, pay attention to the times at which the stock markets in which they are listed are in operation.
Timing for Currencies
The forex marketplace is well-nigh agile when there is an overlap of the London/Asian and London/New York fourth dimension zones. The diagram below gives a perfect illustration of this.
You too need to know that the local currencies of the agile fourth dimension zones volition have increased volatility over others. For instance, the Australian Dollar will exist more active during the Asian/London fourth dimension zone overlap than the London/New York time zone overlap.
Timing for Bolt
Commodity markets are most agile at the following times:
Crude oil (NYMEX.CL) – 9am EST to two.30pm EST
Natural gas – 9.30am EST to 5.15pm EST
Corn – 9.30am EST to i.15pm EST
Gilt – 8.20am EST to 5.15pm EST
Silvery – 8.25am EST to 5.15pm EST
Some other manner 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 side by side 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 move of the relevant exchanges, As such, the DJ30, NASDAQ100 and S&P500 volition conform to the US markets open from 9.xxx am EST to 4.30pm EST, and the DAX30 will conform to that of the Xetra Dax’due south trading hours.
Once you master the trading hours for each nugget, you are i footstep abroad from potential profitability in the marketplace.