What are the best times to trade binary options
Today we will touch on the best times to trade binary options. Some of these assets are traded on a hour basis: Stocks are not usually traded on a hour basis.
The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market. The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market. Trading works best when the market is bubbling with activity from traders all over the world.
When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires.
When you are starting out trading forex pairs , whether it be in the spot market or using binary options, there is a lot of basic information required.
Many traders skip over this basic information, and instead seek out strategies immediately. Yet each hour of the day has different tendencies based on what part of the globe is open for business.
Want signals for Forex? We highlight the best service on the Signals page. Major markets are open at different times throughout the day. Which market s is open directly affects the liquidity and volatility and forex pairs. Currencies generally see increased liquidity when one or more markets that actively trade, or use, that currency are open for business.
This is usually when we have an overlap of the trading zones of the world. Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.
As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9.
If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation. The diagram below gives a perfect illustration of this.
You also need to know that the local currencies of the active time zones will have increased volatility over others.