Lesson 1: The Best Times to Trade Binary Options
Welcome to our new serial on binary options trading for beginners, where nosotros will have y’all past the hand and testify you a systematic way to trade binary options. Today we will touch the best times to trade binary options.
Binary options’ trading involves trading several avails and making money based on the outcome of the price direction. Some of these avails are traded on a 24-60 minutes basis: here we have currencies, commodities and stock indices. Stocks are non ordinarily 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 lot take the fourth dimension zones of the trading capitals of the earth into consideration, this gives unlike trading hours for trading stocks on the binary options market.
The binary options market is one where traders make money based on predicting management, and volatility is what gives price action management in the market.
Trading works best when the market is bubbling with activeness from traders all over the world. When there is skilful trader action 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 avails similar currencies and bolt are supposed to exist 24-hour markets, there are only sure 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 non all assets have the aforementioned trading hours, we will hash out the various classes of avails equally divide entities, taking into business relationship their own peculiar trading hours.
Timing for Stocks
Every bit we mentioned before, stocks are normally traded for a maximum of 6 to 8 hours a twenty-four hours. Stocks of most major companies outside the US are traded on the The states stock markets as American Depository Receipts (ADR). Equally such, the US markets are used equally the criterion of checking the trading hours for stocks. US stock markets unremarkably trade from nine.30am EST to 4pm EST.
Yet, there are other markets in Europe that are just equally important, such FTSE (7am GMT to three.30om GMT) and the Xetra Dax (8am GMT to four.30pm GMT) in Frg. If you 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 most active 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.
Yous also need to know that the local currencies of the agile time zones will have increased volatility over others. For instance, the Australian Dollar will be more than active during the Asian/London time zone overlap than the London/New York time zone overlap.
Timing for Commodities
Commodity markets are virtually active at the following times:
Crude oil (NYMEX.CL) – 9am EST to two.30pm EST
Natural gas – 9.30am EST to 5.15pm EST
Corn – ix.30am EST to 1.15pm EST
Gold – 8.20am EST to 5.15pm EST
Silver – 8.25am EST to 5.15pm EST
Another style of studying the trading times would be to group the commodities under the exchanges where they are traded. Equally such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more than actively traded from 9.30am EST to 1.15pm EST and from 6pm EST to 7.15am EST the adjacent twenty-four hour period.
Full information on trading hours is available on the CME Grouping website.
Timing for Index Futures
Stock indices are CFD instruments that mensurate the move of the relevant exchanges, As such, the DJ30, NASDAQ100 and Due south&P500 volition conform to the U.s. markets open from 9.30 am EST to iv.30pm EST, and the DAX30 will conform to that of the Xetra Dax’s trading hours.
In one case you lot primary the trading hours for each asset, yous are one step away from potential profitability in the market.