Time is of essence- that saying certainly applies to the world of trading. While binary options are always available five days a week for 24-hours, it’s important to choose the optimum trading time. Trading on the binary options market is quite advantageous because investors can trade online, any time during the weekdays.
How Do Binary Trading Hours Work?
Although you can trade binary options throughout the week, some days and some hours are busier and experience more liquidity than others. Many traders try to leverage their profitability during these peak hours. The rule of thumb is to determine the most volatile times to be able to maximize your profits. Volatility is key when trading binary options.
How are markets timed?
The global financial market operates on three distinct time zones. The Asian markets open first, followed by the European markets and closes with the U.S. market. Volatility is typically high during peak hours when all three market time zones are open. On the contrary, volatility is low during off-peak hours, which triggers choppy and slow price movement.
The four main financial centers are New York, London, Tokyo, Sydney and London. Each of these markets opens Sunday 10.00PM GMT through to Friday 10.00 PM GMT.
So, when is a good time to trade?
Well, one wouldn’t say Friday, Wednesday or Monday is specifically the best day for trading. Even then, it’s worthwhile noting that traders in the Eastern Time zone don’t have to trade within their restricted time zones. The first four hours of the Eastern Time zone converge into the last four hours of the London market. As such, these four converging hours experience high volatility and offer a lot of opportunities in the way of tradable options
It’s recommendable to check with your broker when is a good time to start trading your chosen asset. Remember, there are different optimum times for trading different assets.