Trading Binary Options on Weekend
The stock exchanges in Europe and the USA are closed on weekends. Even though it sounds reasonable to take a break after hectic work for five days, there are people who wish to earn a credible extra income during weekends. However, weekend ultra
Weekend Options Offered for Trading
On the basis of expiry, all the contracts offered for trading on weekends can be categorized into two types.
Contracts that expire the same day
Most of the binary brokers offer option contracts that have a
As of today, there are only two cryptocurrencies that are offered for weekend trading via binary options. They are Bitcoin and Litecoin. The binary broker Finpari offers Bitcoin trading, while ExpertOption offers both Bitcoin and Litecoin trading.
In the Middle East, several
The most common currency pairs offered by binary brokers for weekend trading are AUD/USD, GBP/USD, USD/JPY, EUR/JPY, USD/CAD, and USD/CHF. TropicalTrade, WYNN Finance, and Porter Finance offer weekend trading in major currency pairs.
Notably, spot Forex brokers do not permit weekend trading in currency pairs. This is mainly due to the lack of liquidity as major financial institutions remain closed during weekends. Until 2014, most of the binary brokers were offering weekend trading only in Bitcoin and indices of Middle Eastern stock exchanges. As competition intensified, brokers started offering currency pair binary options for trading on weekends. The quotes are usually derived from dark pools of major institutions. These dark pools are open for trading even on weekends. For example, Panda Trading Technologies (Panda TS headquartered in Israel) is an established provider of quotes (Forex and gold) to binary brokers on a 24×7 basis. The company gets quotes from two dark pools based in Asia.
Contracts that close in the coming week
During weekends, binary brokers also offer contracts that have an expiry period of between 24 hours and many days. Three kinds of contracts are usually offered.
One-touch option contracts
These contracts have either a target price above or below the traded price of the asset in the market. As long as the price violates the target level, the trader will be credited the option’s return value.
Ladder option contracts
They are similar to
In addition to the assets mentioned in the earlier paragraph, some of the brokers (24option, Redwood Options for example) offer trading in binary contracts based to Nikkei 225 futures, Dow Jones 30 futures, FTSE 100 futures, and gold. The contracts related to these assets can be bought during weekends. However, the contract will expire only during regular trading days.
Returns on Weekend Trading Options
For the high/low contracts having an expiry period in the range of 30 seconds to 10 minutes, returns offered by binary brokers range between 65% and 78%. On the other hand, for high/low contracts with an expiry period of 24 hours, returns of up to 81% can be found. A successful
Expertise Required to Trade on Weekends
There is no need to have any kind of special expertise to trade on weekends. Having said that, we also wish to caution that a binary trader should take into consideration the economic news releases that are scheduled to be announced later that week in cases when chosen contract does not expire the same day.
Weekend trading is a novel concept, which is quickly gaining popularity among