Best Time to Trade Binary Options
What’s the best time to trade binary options? While that question may appear simple on the surface, it depends on the underlying financial instrument. Trading binaries allows you to take a different approach to trading currencies, stocks, commodities, and more. Each of these markets operates differently with different opening and closing times and different high volume times. That means the best time to trade can vary tremendously based on the types of options you’re trading.
Times and Days
The stock market is open Monday through Friday 9:30 a.m. to 4:00 p.m. ET, for example, while the Forex market is open 24 hours a day. Weekends are off, but you can trade overnight. Familiarize yourself with the hours and days of any market you’re considering participating in, since there are certain times when financial instruments behave unpredictably. If you’re trading Forex binary options for instance, you may want to avoid trading over weekends since there are often some extra fluctuations in price when trading begins again at the start of the week. You also may want to avoid times when financial reports are released, unless you’re specifically trading reports. With stocks, you may want to base your trading around earnings calls and other announcements.
One major difference between trading binaries and traditional trading is that you don’t just enter a trade and stay in it indefinitely (until you exit). Instead, you simply wager on the price of a financial instrument at a specific time. That means that you can wager on a specific time even if you won’t necessarily be available during that time to monitor your trade. Most trading platforms do allow you to make decisions during trades in order to get out with partial profit or losses, however, so you still probably want to set alerts and interact with your trades. Just because your maximum profit or loss is fixed doesn’t mean you shouldn’t try and minimize your losses.
Another aspect of timing is the state of the market at the time that you trade. For example, if you weren’t trading binaries, you might have a hard time trading during a ranging market. Consolidation is traditionally a tough time to trade unless you expect a breakout. If the market is consolidating and you don’t expect it to start trending anytime soon and you’re trading binary options, however, you may well find that is the perfect time to trade. With a Double No Touch trade, you can wager that the price will not break out of a given range during a certain time period and be profitable. You wouldn’t be able to profit this way without binary options—so what traditionally would be a “bad” time to trade may be a perfectly good time to trade and profit with binaries.
Binary options give you a little more flexibility where times, dates, and market situations are concerned. That may make it easier to integrate binary options trading into your day to day life—which makes it a good choice for traders who have busy lives and schedules but still want to participate in the market and become profitable.