Binary options trading hours

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28 Sep 2019 –

During what hours of the day can investors trade stocks?


Thankfully for the sanity of those who invest, a stock cannot be traded at all hours of the day. Instead, trading occurs within a narrow trading window, often between 9:30 AM and 4 PM. Globally, investors trade stocks around the clock because a stock exchange in Asia will have very different hours from a stock exchange in America. Many investors work trading times into their trading strategy. The first two hours of the day are an excellent time to trade because that is when the most volume of trading occurs. There is also a relatively high volume of trading in the last hour of the day. Prices are most volatile when many traders are buying and selling. Some markets, such as the FOREX market, are open 24 hours per day on most days. 


Do trading hours work the same way for Binary options?


A stock exchange is not likely to have separate hours for trading Binary options. Therefore, one can trade binary options at any time of the day on the FOREX exchange. If one is trading Binary options on the New York stock exchange, then one can only buy and sell during New York stock exchange hours. Commodities such as gold or oil, currencies, and stock indices are often traded on 24-hour markets. Shares of businesses are much more likely to be sold on stock exchanges that have limited trading hours. Many traders trade Binary options on 24-hour markets, and many others on exchanges with restricted trading hours. 


What are the best hours to trade Binary options?


When one is trading ordinary stocks, they usually want to buy and sell during the busiest part of the day. This is because a higher trading volume causes the price to change more quickly, leading to more opportunity to make a significant amount of profit. 


With Binary options, it does not matter whether or not the commodity prices are changing quickly or slowly. One can make the same amount of profit either way as long as their predictions are accurate. However, what time of the day it is still matters in Binary options trading. 


During parts of the day in which there is a little trading going on, it may be easy to predict whether or not the price of a stock will increase. Therefore, one can easily guess whether or not the price of a commodity will be higher or lower in a few hours if the market is stable. Therefore, a trader is more likely to lose during times of higher market activity. On another level, the rewards for making predictions when the odds are about even either way are higher than the rewards for making more straightforward predictions. Between 8 AM and 12 AM can be an excellent time to trade Binary options on currencies if one is looking to make high-risk, uncertain predictions. Between 8 AM and 12 AM (eastern standard time) is when there is a lot of trading both in America and in Europe. This trading activity makes predictions uncertain, leading to high rewards for those who can make accurate predictions. 


Are different currency pairs more volatile at different times of the day?


Yes, the price ratio between different currencies is more likely to change during certain times of the day. At least one of the four largest national currency trading exchanges (Sydney, Tokyo, London, New York) is always open, regardless of what time it is. When the Tokyo exchange is open, for example, the value of the yen is more likely to change relative to other currencies. 


During the 5 AM to 12 PM (eastern standard time) hours, the prices of the Euro relative to the Dollar and the Euro to the Yen are volatile. During the hours between 12 PM and 7 PM, when both the London exchange and the New York exchange are open at the same time, most trading pairs have high volatility. Most currencies are not volatile between 7 PM and 5 AM. However, the price of the Australian Dollar relative to the American Dollar is the most volatile during this time. 


With binary options, rightfully predicting a tiny price increase is just as good as predicting an enormous price increase. In spite of that, it can still be easier to make accurate predictions during times of lower market volatility. 


Is the market more volatile on some days of the week than others?


Yes, the market does tend to get more or less volatile depending on what day of the week it is. Wednesday is typically the calm day when large price changes are less likely. Monday and Tuesday are known as more volatile days. Binary options are always higher-risk investments, even if the market is not volatile. Therefore, what day you trade on matters less than for other types of investments. 


Are stocks more likely to increase on some days than on other days?


Some evidence suggests that stock prices are more likely to increase on Monday than on any other day of the week. For the last twenty years, stocks have tended to go up by the most on Mondays. Thursdays are the weakest day for the stock market. If one is trading Binary options, this should not matter at all. It is just as easy to make money with Binary options on days in which the stock market is going down than on days in which it is going up. 


Are different commodities more actively traded at different times?


Yes, each commodity has a slightly different time in which it is most actively traded. Traders on the forex exchange trade silver the most between 8:25 AM and 5:15 PM EST, while corn is most actively traded between 9:30 AM and 1:15 PM.


For ordinary commodity trading, what time of the day you buy and sell affects how risky it is to do so. If one is trading Binary options, the volatility of the prices only has an indirect effect on how dangerous it is to trade. Binary options are risky even in a stable market.