Quiet time for trading binary options. Trading on holidays

Quiet time for trading binary options.  Trading on holidays
Quiet time for trading binary options. Trading on holidays

Binary options are easier to learn than forex. However, there are many different factors and characteristics to consider for success. Choosing a reliable broker and an effective strategy is important. But you also need to know what is the best time to trade binary options. We will talk about this today.

What is a trading session?

Financial exchanges of the largest cities of the world work 5 days a week (Monday – Friday) in the world. It is on them that every trader earns, sitting at his computer. And given that they work according to local time, you can trade at any time of the day.

To make it easier to navigate, there are 4 trading sessions:

  • Pacific - takes into account the working hours of the Sydney Stock Exchange, as well as the Wellington Stock Exchange. Starts at 01:00 and lasts until 09:00;
  • Asian. Corresponds to the work of the Tokyo Stock Exchange, that is, from 03:00 to 12:00;
  • European. The stock exchanges of London, Paris and other cities participate. Opening hours - 10: 00-19: 00;
  • American (New York) - 16: 30-22: 30.

So that you do not get confused in time zones, the opening and closing hours of trading sessions were indicated in Moscow time.

How do assets behave during a particular session?

Knowing the schedule of trading sessions is not enough to determine the best time to trade binary options. You need to understand the features of each and how they affect the movement of assets. For example, during the Pacific session, the Australian dollar is the most active on the world currency market. You can also add NZD (New Zealand dollar) to it.

During the Asian session, the Japanese yen is added to the active dollars from Oceania. Still, the Tokyo, Sydney and Wellington exchanges do not attract traders from the West. How this is explained, you will find out a little later.

During the European session, exchanges in London, Paris and other cities of the Old World begin their work. As a result, the most active are the British pound, euro and Swiss franc.

The last three hours of the European exchanges coincide with the first hours of the American session. Therefore, American and Canadian dollars are added to the above currencies.

But still, to decide when is it better to trade binary options, it is necessary to discern in more detail the features of the behavior of assets during a particular session.

Asset behavior

Best time to trade binary options- 10: 00–22: 30, that is, during the European, and after the American session. At least that's what most traders think. And there is a reasonable explanation for this.

Our traders and those who live to the west prefer to sleep well before trading during the Asia and Pacific session. And all because at this time there is low liquidity. In addition, the same Japanese yen is considered the most unpredictable currency, which can give inaccurate entry signals even with the most proven analysis.

Therefore, if your strategy for making money on binary options is suitable for different assets, and is not aimed only at JPY, NZD, AUD, we recommend that you reduce risks and trade during the opening of European and American exchanges. But if you still like night trading, spend more time studying and analyzing assets.

The European and American sessions are distinguished by their activity, especially from 16:30 to 19:00 (Moscow time), when exchanges on both continents operate simultaneously. Euro, dollar, pound, franc, and also ruble. At this time, they are especially liquid.

Choosing a strategy

So what is the best time to trade binary options? Depends on which strategy you choose. First, if you are trading based on technical analysis, you should follow the economic calendar (available on Investing.com, the largest portal). The release of important news can lead to a sharp jump in prices. Therefore, 15–20 minutes before the release and 20 minutes after the publication, you need to refrain from trading.

Fans of short-term trading who trade according to the Scalping strategy do not need high market volatility, but a prolonged flat will not bring profit either. Therefore, you need to choose an asset that shows a smooth price movement. To do this, during the European session, it is better to choose an asset with the yen or another currency, the exchange of which is closed at the time of trading.

A little about OTC

Finally, let's talk about Over the counter. All exchanges are open 5 days a week. But many brokers also offer weekend trading. Don't worry, this is not a divorce. The fact is that the exchange is an intermediary between the buyer and the seller. On weekends, trading is carried out directly between the largest banks in the world. Trading these days is characterized by the worst predictability, but smoother movement. Therefore, for some OTC - this is the best time to trade binary options while others take a weekend break.

We hope that the knowledge gained will help you understand the best time to trade binary options. Thanks to this, you will be able to use the trading strategy more effectively and save yourself from simple but common mistakes.

There are many factors that affect trading efficiency. One of these is time. You can do everything according to the strategy and advice of experienced speculators, but if you make a deal at the wrong time, you will lose your investment. To prevent this, we will choose the best time to trade binary options. So, are you ready? Then let's get started.

3 main trading sessions

We will not explain what time zones are, you probably already know that. We will tell you how they affect trade. Major world exchanges start working in the morning and end in the evening, but at their own time.

There are 3 main trading periods:

  • Asian;
  • European;
  • American.

Also, the Pacific trading session is sometimes distinguished, during which they are actively trading on the stock exchanges of Australia and New Zealand. But it works almost in parallel with Asian exchanges, and therefore it is referred to the Asian session.

Why do you need to know the schedule of each trading period. To understand when is the best time to trade binary options. A certain asset shows strong volatility during the operation of one of the world's exchanges. The rest of the time, quotes move smoothly and in a narrow price range. Trading at this time is too risky.

To make it clearer, take a look at the table below. It shows the schedule of the trading session, the exchanges of which countries are working at this time, which currencies are the most active.

To determine the best time for binary options, it is not enough to know only the opening hours of the desired exchange. Let's take a look at the specifics of each trading period.

Asian trading session

For most traders, the period from 3:00 to 12:00 Moscow time is far from the best time to work on binary options. This is because currency pairs are the most inactive at this time.

Take another look at the table above. We noticed that during the Asian period the most active currency pairs are USD / CHF and GBP / CHF instead of NZD / USD and / AUD / USD. Despite the fact that during the Asian session the latter have a peak of activity, they still cannot surpass assets with the European currency. The first reason is that Asian and European exchanges work from 11:00 to 12:00. Therefore, at the end of the working day in Tokyo and Sydney, the pound, euro and franc begin to activate.

The main reason that Pacific and Asian currencies cannot outperform Western currencies is that the Australian and New Zealand dollars themselves are not highly volatile. The daily trading range of NZD / USD and AUD / USD does not exceed 50 pips. Therefore, these currencies are traded only on rare occasions.

The Japanese yen is more active. The daily USD / JPY range is approximately 55 pips. But the GBP / JPY pair overcomes almost 100 points during the trading session.

Is the Asian session the best time to trade binary options? For many traders, no. But such moderate activity of some currency pairs is suitable for trading with expiration from 15 minutes to 2-3 hours.

It is more difficult to predict the further movement of Asian and Pacific currencies. This is another reason why traders choose the European or American session.

European trade period

If you ask traders when it is better to play binary options, many will say that during the work of European exchanges. The trading range of the most active currency pairs during this period reaches 120-140 points. But these are not the only features of trading during the work of European exchanges. Let's take a look at the rest:

  • Due to high price fluctuations, trading some assets is too risky for beginners;
  • During this period, the Moscow Exchange operates, so if you are interested in what time it is better to trade binary options with the ruble, here is your answer;
  • Many traders from the CIS trade during the work of European exchanges, not because assets behave differently at this time, but simply because they are physically more comfortable to work;
  • Activity during the session is inconsistent. The first wave of increased volatility lasts until 13:00. At this time, major players make the bulk of their purchases and sales. After that, a decline in activity is observed. It lasts several hours. And along with the opening of American stock exchanges, activity is increasing again.

American session

Many traders say that the best time to trade is during the European session. But there are not much fewer fans of speculation during the work of American exchanges.

During this period, news is released across the United States and Canada. In addition, the first hours of operation coincide with the activity in Europe. What does this mean? High market volatility. Let's take a look at other features as well:

  • Trends formed during the work of European exchanges receive a new impetus;
  • The session is also divided into 2 halves. In the first part, it is better to rely on fundamental data, and in the second, we recommend giving preference to technical analysis;
  • The highest activity is observed in the period from 16:00 to 18:00;
  • Trading from 16:00 Moscow time is great for short-term trading. But the medium-term deals should be made with caution in pairs with the dollar and euro.

When is the best time to trade binary options? Choosing a suitable day of the week

To determine when it is best to play binary options, you need to take into account not only the time, but also the day of the week. For clarity, take a look at the screenshot below.

It shows how many pips the major currency pairs pass during the day. As you can see, it is best to trade from Tuesday to Friday. Activity is slightly lower on Monday, as exchanges are only entering the business week. On Sunday, the market practically stands still. That is why almost all brokers are closed on weekends.

On Friday, it is better to trade until 20:00. After that, market activity rapidly declines. Everyone wants a weekend.

You must determine for yourself the best time to trade, based on your strategy and preferred assets of work. At the same time, you need to take into account the opening hours of world exchanges, the day of the week and the release of each important news.

Sometimes it's hard not to miss something. But over time, you will get used to it and you will notice that trading has become much easier and more profitable.

The ultimate outcome of working with a derivative depends on a number of factors that each investor must take into account. Time to enter the market is just one of them. In this article, we will focus on a very topical question for beginners at what time is the best time to trade binary options. Many, unfortunately, ignore this factor, as a result of which they face losses.

To make it easier for a practicing investor to find the best time to trade binary options, one has to take into account the existing market patterns, the start and end times of trading sessions, know which days are ideal for beginners, etc. When the speculator chooses the time, all the moments have to be taken into account.

Change in the price of a binary option

The contract price depends on the price of the asset. What influences the dynamics of value? A beginner needs to understand the following market patterns:

  • The more interest and involvement of buyers and sellers of an asset, the more active the option value will be on them.
  • Getting started on the market of large investors, with significant amounts acts as a catalyst for the momentary movement of value.
  • The more sites operate at the same time, the greater the dynamics of value.
  • Each continent has its own characteristic features, which will be discussed in more detail below.
  • Economic and political news are ways to influence the market.

Trading session schedule

To choose the best time for binary options, it is necessary to dwell on the distinctive features of trading sessions. Brokerage companies, in turn, offer round-the-clock trading. Despite this, every speculator should choose the optimal time to trade binary options. Trading sessions are divided into:

  • Asian. Starting from 03.00 Moscow time. Slight fluctuations in cost are inherent.
  • European. It starts at 08.00 Moscow time after the opening of the Frankfurt Stock Exchange, the market is gaining momentum, you can watch the trend movements. After 09:00 Moscow time, the London platform opens, the number of transactions and price dynamics increase.
  • American. Starts with the opening of the New York Stock Exchange at 15.00 Moscow time. From 15.00 to 17.00 European and American sites function. The market is characterized by the highest activity. Asset prices can instantly change direction over a wide range. At 17.00 Moscow time, European sites stop working. The US exchanges are open until 00.00, and the Sydney exchange begins at 01.00.

So, as you can see, each session connects with the other, as a result of which it is necessary to take into account just this period of intersection.

Which days are best to trade

Exchange platforms operate every day except weekends and holidays.

Monday is considered a day with increased activity... Since there are fast jumps after the weekend, a change in the trend movement. It is better for investors with experience to work on this day.

Novice investors are better off trading from Tuesday to Thursday. The trends are stable, the movement of value with minimal unpredictability.

Friday- this is the end of the working week, most of the participants, especially the big players, show maximum activity. What influences the increase in risks.

Remember, the best time to trade binary options for novice investors is from Tuesday to Thursday.

News release time

It is important to take into account the time of publication of the news, which will avoid unpleasant twists and turns or shocks. Therefore, it is recommended to use the economic calendar to keep track of the publication of new events.

Trading sessions

When disclosing the question of what time it is better for novice investors to trade binary options, it is recommended to remember about the characteristic features of trading sessions. Previously, the nuances of the work of the exchanges were painted, you need to remember these points when choosing an asset. From this it is clear that it is better to enter the market, for example, at the time of the European session in pairs, where the euro is present.

Weekend trading

Binary options trading does not stop despite the fact that the stock market does not function on weekends. The fact is that the completion of transactions does not require a working exchange, the investor deals exclusively with the broker. The speculator will have to set the optimal expiration time for binary options so that it falls on business hours. The downside is the inability to complete operations with intraday expiration.

Trading binary options at night

What was said earlier can be applied to night trading as well. If you choose the right asset, for example, the yen-dollar, you can work with a plus in the Asian session.

Pros and cons of trading

The basic advantage is the calm nature of the period. You can train, work slowly. The downsides are insignificant profit margins and frequent situations when the value does not move.

Day trading binary options

What time is it for beginners to trade binary options? It is best to just give preference to day trading, at a time when the markets are functioning and financial instruments are active, and there is an opportunity to complete transactions.

Pros and cons of trading

The advantage of day trading is considered to be a high profit. If you correctly select an asset, and take into account the period of operation of the trading exchange, choosing a strategy and those. instruments, the chances of closing a good deal increase. Better to give preference to trend methods.

The disadvantages are that the market is overly active at a time when the European and US exchanges work at the same time. Beginners need to be careful.

The profitability from the conclusion of contracts for the purchase and sale of binary assets is greatly influenced by the time of the transaction. The right moment is the key to successful trading activities, which entails an increase in the series of contracts that will bring colossal profits. Consequently, an inaccurately chosen time frame can violate the established trading system in the financial market, which can reduce the level of profitability or lead to a loss of capital.

When to Trade Binary Options: Session Schedule

The change in the trend of assets and the price chart of binary options depends on such a circumstance as the opening and closing times of exchanges. It was during this period that a revival in the market was noted, which was favorable for the conclusion of contracts. In addition, traders should take into account that the beginning of the trading day may be accompanied by a sharp drop in the lines in the price chart.

Today there are four trading sessions, which are conventionally divided taking into account individual characteristics. According to the schedule, the beginning of trading in one economic zone is characterized by the end of the session in another. Due to the presence of different types of sessions, trading in the financial market is conducted 24 hours a day. Among them, it is worth highlighting the following periods:

  1. Asian session. The trading time interval starts at 04.00 am and lasts until 13.00 Moscow time. It is suitable for transactions in shares of the largest Asian holdings, as well as currency pairs with the participation of the Australian dollar and the Japanese yen.
  2. Pacific session. Its activity on the market starts from 02.00 am and ends by 11.00 am Moscow time. In the center of exchange trading are companies and enterprises in Australia and the Oceania archipelago. The main currency of transactions is the Australian dollar.
  3. European session. A significant number of traders trade during this period of time - from 09.00 to 18.00. This is the most convenient session for investors living in the CIS countries. The activity in the financial market is observed during the periods 09.00-12.00 and 13.00-15.00. Shares of well-known European holdings are available to exchange participants, as well as monetary units: euro, British pound, Swiss franc.
  4. American session. The period is considered the most voluminous in terms of the number of transactions concluded. It starts at 17.00 and ends at 00.00, it is at this time that the shares and securities of American companies are most active, as well as currency pairs in which the US dollar participates.

What is the best time to trade

An important and rather responsible task for many traders is choosing the best time to trade binary options. To achieve positive results, it is worth considering certain factors when trading binary options:

The trader's desktop should always have a schedule of the main trading sessions, which can be found on the website of any brokerage company. A conveniently compiled schedule allows you to take into account the opening and closing times of exchange-traded funds in certain countries and continents. It is of great importance for the formation of the direction of prices of various assets, as well as the monetary denomination of the state in which the currency and commodity exchange is located. In addition, financial market participants should always take into account the time zone and the specifics of winter / summer time.

Days of the week

There are favorable and unfavorable days of the week for trading on the binary options exchange. For example, professional traders take Monday as a day of flat movement. When conducting a technical analysis of the market, it can be noted that there are no sharp price movements. The reason for this is the minimal publication of macroeconomic indicators, which was facilitated by the weekend. Accordingly, on Monday, traders are advised to play with the use of trading systems operating in a flat. The main days for trading binary options on the financial market are Tuesday, Wednesday and Thursday. These days, strategic decisions aimed at conducting trading activities in a trend are relevant. Friday is the last day of trading and is characterized by strong and directional price movements. Such activity is associated with closing deals on the eve of the weekend.

Weekends and holidays

During the New Year celebrations and other popular events, the financial market is quite volatile and completely different from traditional everyday life. The flat movement with sharp price impulses occurs during the Christmas holidays from December 20 to January 5. Flat on the binary options exchange is explained by the low activity of traders, and the situation with sharp price fluctuations speaks of large infusions of funds into the foreign exchange market.

First Friday of the month or non-farm

This is one of the fundamental indicators of the US economy. It belongs to the American labor market and provides information on labor reserves and new jobs in the economic sector. On the first Friday of the month, traders can observe sharp impulses for all currency pairs in which the dollar participates. It is difficult to predict the market situation on this day, so many participants try to refrain from trading. Hot news, which can be the impetus for opening an option, will help increase the chances of making a profit on Friday.

Now, traders will be able to determine when is the best time for binary options. This will help regulate the work plan and know the periods in which it is recommended to refrain from entering the foreign exchange and stock markets. Trading session time is an important parameter that should be taken into account when forming a competent strategic decision on trading.
With the right approach, there is a high probability of making a good and stable profit.

What is the relationship between time and profit

Market makers are large and influential participants in the financial market who are able to make significant changes in the price trend. Their peculiarity lies in the conduct of trading activities on the stock and currency exchange in a certain period of time. That is why it is worth carefully monitoring the periods when large-scale financial sharks enter the market in order to start making deals on serious stock exchanges. It is thanks to market makers that there is a strong fluctuation in prices, favorable for trading.

Before entering the financial market, a trader must study the daily trading price tables, which will help to carry out comparative analysis and choose the winning tactics. If you carefully look at the intraday charts, you can see how in a certain time interval the growth and fall of its quotes occurs.

Considering the above types of trading sessions, it can be noted that the beginning of transactions for the conclusion of transactions will fall on Monday night. Operations in the foreign exchange market begin with the Pacific session, when the trading platforms of New Zealand, Singapore and Australia are provided to traders. The Tokyo Stock Exchange picks up the baton of trading at four in the morning, but it is not very dynamic, except for the moments of the presence of strong news in binary options.

After that, the stock exchanges of London, Frankfurt and other European cities enter the world financial market. It is during the period from 10.00 to 18.00 that the largest trades take place, allowing you to conclude profitable deals. The exchange offers currencies of different countries and assets of world famous corporations. The peak of activity in the financial market is reached at about 16.30, from the opening of the American trading session. At this time, exchanges such as Amex, Nyse and Nasdaq begin their work. Together with the European time frame, powerful price movements are recorded in the market, which are a signal for profitable trading activities.

To make the right timing for trading binary options, you need to familiarize yourself with the trading sessions. This will help you align with the natural cycles of the financial market using a unique trading strategy. For example, a trading system based on the method of entering a rebound from the borders of a price channel functions favorably during quiet trading sessions such as the Asian and Pacific ones. Consequently, if you need to obtain increased volatility and high income, you will need to wait for the opening of the London Stock Exchange.

Binary options trading strategy on the news

The timing of news releases is an impulse that has a strong impact on the financial market. It is able to identify long-term and short-term price changes. Since the business and trading of binary options have a lot in common, not only traders, but also large entrepreneurs may be interested in the news.

For investors who make transactions in the foreign exchange market, an important indicator is the exact time of an economic event, which is directly related to the trading asset. A trader should not trade for unnecessary information and make deals in difficult times. Its task is to closely monitor the release of the necessary news, because during this period there is panic and disorder in the financial market.

There are several types of news that have unique features and differences. For example, regular news is characterized by the frequency of publication: once a month, quarterly or annually. They can cover industry data, the economic performance of a specific country, or corporate financial statements. A trader working on a certain type of financial assets should closely monitor the events in this industry and be aware of the time of their release. During this period, it is very important not to miss the moment of reaction of exchange participants to the release of regular news. In addition, the investor should take into account that a sharp increase in the value of binary assets is possible.

A convenient solution is to monitor the websites of well-known brokerage companies that regularly release a calendar with upcoming financial news expected in the coming month. On the brokers' website, you can analyze the schedule of recurring financial news that will help you choose the right time to trade binary options. Experts do not recommend that beginners go into the evaluation of regular news in detail, since due to inexperience this can lead to unpredictable consequences.

Just a good strategy is not enough to be successful in online trading. It is necessary to take into account every detail, and especially to look at the watch when concluding a deal. Let's take a look at the best time to trade binary options.

Working hours of world exchanges

All the work of the global stock market can be divided into 4 main sessions:

  • Pacific (Sydney's main financial center, as well as Wellington) - opens at 10:00 pm and closes at 9:00 am;
  • Asian (Tokyo) - exchange opening hours - 00: 00-9: 00;
  • European (London) - 7: 00-16: 00;
  • American (New York) 13: 30-22: 30.

Note! All times are in GMT. Accordingly, to find out the opening hours of the world's financial centers Moscow time, you need to add 3 hours.

How does session time affect asset behavior?

Most professional traders only trade a few assets. They study them completely and often even predict exactly which way he will go after the news comes out. What is needed for this? The main thing is to find the best time to trade binary options.

During the operation of one of the exchanges, the price movement of a certain asset is especially activated:

  • The Australian dollar shows the highest volatility on the Sydney Exchange. Wellington Exchange also opens 2 hours earlier. Accordingly, the New Zealand dollar is activating in the market;
  • During the Asian session, it is better to trade the Japanese yen, as Tokyo is the main financial center during this period. But how convenient it is to conclude deals at this time, you will learn a little later;
  • The London Stock Exchange operates in parallel with the European ones. Therefore, during this period, currency pairs with the British pound and the euro are especially active;
  • As you may have guessed, the opening of the New York Stock Exchange brings the US dollar into activity.

This rule applies not only to currencies, but also to other assets: commodities, stocks and indices. But to know when is the best time to trade binary options, you need to know something else.

Asset behavior

You have probably noticed that many traders trade currency pairs with the pound, dollar and euro. Have you ever wondered why? We will tell you now.

During the Pacific session, the vast majority of speculators enjoy sleep instead of trading. And all because the market volatility at this time is extremely low. And this, in turn, increases the risks.

Not everything is simple with the Asian session either. First, volatility is also low here. Secondly, unpredictable price movements are often observed. Predicting market behavior is difficult even for experienced traders; we recommend that beginners do not trade during this session at all at first.

The work of European exchanges is accompanied by an active price movement of all currency pairs with the euro, British pound, Swiss franc and Russian ruble. It is at this time that most traders prefer to trade, since the market movement can be predicted, and high volatility reduces risks. By the way, the largest price jumps are observed from 9 to 12 o'clock, as well as from 13 to 15 Moscow time.

The American session is not only about the United States, but also about Canada. Therefore, along with the US dollar, the Canadian dollar is also activated. It is also worth remembering that the last 3-4 hours of the European session intersect with the American one. During this time, the market becomes even more active.

What is the best time to trade binary options? Choosing a session in accordance with the strategy

We will not stay in this section for long. If you are trading on a strategy that is not tied to a specific asset, this does not mean that you do not need to take into account the trading time. For most trading methods, it is indeed best to use the asset that is most mobile during this period.

But there are exceptions, for example, scalping (you can familiarize yourself with this strategy). In this strategy, you need to find an asset that will not show active price fluctuations. Therefore, you need to choose a currency that does not belong to the session during which transactions will be made.

The best time to trade binary options is during the news release

Important economic news from a particular country may affect the current price movement of the corresponding currency or other asset. You can follow the economic calendar on Investing.com. You should stop trading 10-15 minutes before the news with two and three bullish heads is released. The conclusion of transactions should be resumed after the same period of time.

Now you know when to trade binary options and you can competently build your own trading strategy that will bring you a stable income.