One of the reasons that new traders wonder when is the best time to trade binary options is because this trading poses a unique opportunity. This is due to the fact that you can trade with numerous assets across multiple industries with just one trading account.
This means that you have a lot more choices to select from, leaving you with a considerable amount of confusion regarding the timing of the trades.
Here are a few things that you should know about what the best time to trade binary options is:
1. It Depends on the Asset
Sometimes, the trading times have already been chosen for you. This is because depending on the asset that you have decided to trade with, you will need to follow the timings set by the various exchanges. For instance, if you are looking to place trades with stocks, you can only do so on weekdays, according to when the exchanges are open.
The London and German Exchanges are open from 7am to 3pm while the American Stock Exchanges run from 1.30pm to 7.30pm. Japan is open from 11.30pm to 6.30pm. All of the times are in Greenwich Mean Time. Commodities too have their own timings, particularly for the electronic sector.
The good news here, however, is that you can place trades on Sundays. Now the forex system is a different animal altogether – it is open 24 hours a day, five days a week. Due to these various timings, you do have certain limitations on when you can place a trade.
2. It Depends on Your Strategy
Contingent on the strategy that you are using, you may find it either most suited to volatile times or sedate periods. Once you have figured this out, you will be better equipped to determine what time is best for your strategy.
Let’s imagine, for instance, that your strategy fares well during volatile moments, or you use signals. This is to be expected when most of the markets are open. This is when you can expect the largest movements in prices. Therefore, it is good to be involved in trades when most of the world is partaking as well. If your strategy favors sedate moments, however, it is best to wait until there are only one or two markets operating.
3. It Depends on You
For most individuals, binary options trading is a part-time activity. As such, they have to adhere to the timings of their jobs and other responsibilities. Therefore, to a large extent, the time that you choose also depends on when you are able to do it. Unless you have set up an automatic system, you will need to spend some time deciding on the trade. This could mean that you choose to opt for a period of time once you are done with work, perhaps late at night.
It is important to note that you should never make trades when you are tired or not capable of thinking clearly. There are a lot of factors to consider and you will need to do this with a clear head. As a result, it is best not to stay up late, placing trades if you simply cannot concentrate.
This article will give you some insight into when is the best time to trade binary options. This, in turn, will allow you to use your strategy more appropriately.