Success in binary options or forex trading for that matter is hinged on a variety of variables. We can however all agree that trade entry and exit times dictate whether your trade will end in the money or out of the money.The best time to trade is always an elusive topic especially if you are new to financial trading. Well, initiating trades haphazardly is tantamount to trading career suicide. To that end, we have compiled an article detailing the best time to trade binary options.
If you are a new trader, read our article on why binary options trading is better than forex before proceeding.
Just to recap, binary options trading involves predicting whether the price of the underlying asset will rise or fall in a specific period. Unlike trading forex and other financial markets, the magnitude of price change does not affect the final result of a binary options trade and hence you don’t have to be a financial whiz to make a killing.
Best Time To Trade Stocks
Although binary options brokers provide 24/7 trade platform access, it is important to note that availability of specific stocks is dependent on opening and closing times of specific stocks exchange under which it is listed. That being said, it is always upon you to do due diligence and figure out opening and closing time in your time zone.
For instance, the NYSE is usually active from 0930 hrs to 1600 hrs EST. You can trade FTSE-listed stocks from 7 am to 3:30 pm GMT. Additionally Xetra DAX can be traded from 8am to 4:30 pm GMT. So, essentially, the best time to trade stocks is when their respective markets are open. Else, you will trade against flat price movements and that can hugely affect your bottom line.
Best Time To Trade Currencies
To succeed in currency trading, you must identify the most active trade times. From experience, the best time to trade currencies with binary options is when the London-New York and London-Asian time zones overlap. For instance 0800hrs to 1100hrs GMT-5 is a perfect window to trade currencies. On the same light, it is imperative to note that currencies are most volatile when their respective exchanges are open.
Best Time To Trade Commodities
Whether trading hard or soft commodities, if you don’t know the most ideal time to trade, you stand to make losses as a result of low volatility. The golden rule when it comes to trading commodities to identify when they are traded on exchanges. For instance, Crude Oil is traded on NYMEX.CL from 9am to 2.30pm EST. Agricultural commodities on the other hand are traded on Chicago Mercantile Exchange with most active times being 9.30 am to 1.15pm EST.