Although there truly is no wrong time to trade binary options, there are indeed certain times of the day that are better than others for actively trading. Honing in on these times as often as possible can provide a boost to profits, which is something that all traders desire. Consider the following information when planning out the times of day that you will be executing trades within your chosen trading platform.
The very first consideration should be the exact hours that trades can be executed within the platform provided by your broker(s). While some brokers do offer 24-hour trading, note that there will be some limitations when select markets are closed for the day. Many brokers now provide a complete asset index that includes the hours during which each specific asset can be traded. In general, there should be an extensive time period for entering into trades each day, but it remains important to know which parameters you are working within.
Location does play a role when deciding when to trade, but only in that traders need to remain aware of time zone differences and the hours of operation for each market. For example, if someone in the United States wishes to trade during the opening hours of the London market, they will need to be awake very, very early in the morning. If there are specific markets that you plan to utilize as part of your binary options strategy, you must know the hours of operation for your local time zone.
Market hours are certainly not the only consideration. Price action can change at certain times of the day, such as when key major market hours overlap. There are also noticeable differences around the times of market opening and closing. In both cases, trade volume tends to increase around those times. Price action may also increase and decrease along with the release of economic data and financial data. Many traders use the dates and times of the release of this information to decide when to trade each day.
The type of instruments that you prefer to utilize can be paired with certain times of the day. For example, when trade volume is high just after the market opens, a Touch or Put/Call trade may be an excellent choice. Once the market calms a bit, a No Touch, Boundary, or Range instrument may be the appropriate selection. It can take a bit of time to get a “feel” for the ebb and flow of the markets, but it should not be long before you know exactly which instrument to select under which types of conditions.
While it is possible to trade around in the clock when working with certain brokers, the fact of the matter is that most traders have a very specific time-frame during which they are able to take the time to enter into trades. For these people, the goal should be to become familiar with how asset prices typically move during those hours and then when possible, take advantage of other optimal time periods. Binary options trading does require some level of flexibility, but this does not mean that a trading schedule cannot be developed and followed.
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