When is the best time to trade? If you are a beginner and you still have a lot to learn about binary trading then this would be an ideal article for you. Trading may seem too simple with all the ups and downs and calls and puts. But understanding these terms require more than just knowing their meanings. One of the most vital aspect of that you need to learn in trading knows when the best time to trade is. In this article you will learn how to systematically trade binary options.
Trading binary options includes trading different assets and earning money based on price direction outcome. Most assets are typically traded the whole day. Elements that are traded include currencies, stock indices, and commodities. Stocks are not typically traded in a twenty four hour manner. Stock market trading time identifies the times wherein a certain stock is in that market list and is thereby traded. If you consider world trading capitals time zones, there will be varied hours for trading for trading stocks in the market for binary options.
Best Time for Binary Option Trading
As a trader, you can make money on direction predictions in the binary options market. In this market, you will have price action direction with volatility. You have to take note that if the market is filled with activities from global traders; this is when trading can work best. If there is positive activities between traders in the market there can be enough volatility and liquidity necessary for fundamental assets to reach its target prior to expiration of options.
The time when market activity is at its peak is only limited regardless of the fact that assets such as commodities and currencies are believed to be twenty four hour markets. This usually happens when time zones from different countries overlap.. Time zones have varied trading hours, thus it is ideal to talk about the different asset classes as varied entities putting into consideration their own unique trading hours.
As mentioned before, stocks are typically traded for at most six to eight hours in one day. Stocks of huge companies outside the United States are traded on United States Markets as ADR or American Depository Receipts. With this, American markets are patronized as the standard of stock trading hour’s checks. American stock markets typically trade around 9:30 am Eastern Standard time to 4 in the after EST.
Nonetheless, there are also other vital markets in other parts of the globe. This includes the markets in Europe such as FTSE where in trading is open at 7 am Greenwich Meridian Time to 3:30 in the afternoon GMT. Another market in Europe is the Xetra Dax in Germany which trades around 8 in the morning GMT to 4:30 in the afternoon GMT. When you trade stocks in a binary options market, you have to pay close attention to the times where the stocks are listed and what time they are traded.
Currency is another thing that you have to consider when trading binary options. The Forex market is very active when time zones overlap. Common time zones that overlap include London and New York and London and Asia. Moreover, you also have to understand that local currencies of time zones that are active can have a growing volatility over other time zones. An example would be the Australian dollar. This can more active when London/Asia time zone overlaps more than the New York/London overlaps.
As mentioned before, commodities are also very important assets traded in binary options market. Below is a list of commodities and the times when they are most active.
Corn – 9:30 am EST – 1:15 pm EST
Crude Oil – 9:00 am EST – 5:15 pm EST
Gold – 8:20 EST to 5:15 pm EST
Natural Gas – 9:30 pm EST to 5:15 pm EST
Silver – 8:25 am EST to 5:15 EST
One other way to study trading times is grouping commodities below exchanges where they are also traded. With this, agricultural commodities that are traded in Chicago Mercantile Exchange are actively traded from 9:30am EST to 1:15 EST and on the next day it is actively traded from 6:00 pm EST to 7:15 am EST. if you want to know more about this feel free to access the CME website.
Relevant exchanges movement is measures by Stock indices. With this, NASDAQ100, DJ30, and S&P500 conforms to US markets from 9:30 am EST to 4:30 pm EST. the DAX30 conforms to Xetra Daxs trading times. When you master the trading hours for each of these assets then you are now one step further from gaining profits!
The bottom line
Once you master the trading hours for each asset, you are one step away from potential profitability in the market.