Binary options trading is fast becoming a popular investment opportunity for many. However, if you don’t have any experience, you may get a little confused. Several assets are traded in binary options trading and you can make money based on the movement of the assets.
The assets that are traded daily include stocks, commodities and currencies. If you want to trade in stocks you need to remember that they are not traded 24 hours daily and vary depending on the stock exchanges that you wish to trade. There are specific trading timings that you need to be aware of, too, so that you can complete the trade of stocks in that set amount of time and make money.
Although commodities and currencies can be traded 24 hours a day, there are specific timings when the activity of trading is at its high. It is important that you analyze and study the timings when the movement of assets is at its maximum and this can help you place your trades accordingly.
Binary Options Trading Time Frames
- Trading when the market opens can be a little tricky as there is lot of volatility. The market open time could be anywhere between five minutes to half an hour. Most traders who recommend trading on the market open recommend trading as close to the opening time as possible. As the movement of the asset is huge you may be able to make profits within a few minutes. However if the movement of the asset is not as planned you can adopt a hedging strategy to minimize the losses.
- You can also choose to trade when the market closes as the last hour of trading usually sees a lot of movement. Different movement patterns emerge in the last hour of trading and experienced traders may be able to benefit by placing trades prior to expiration.
- Stocks can be traded for six to eight hours daily and depending on the stock exchange that you wish to trade, you can choose the time. Forex, commodities and index futures also have different trading times. It is advisable that you become aware of the various trading hours so that you are able to benefit by placing trades during those preferred hours. For instance currencies see movement when the market closes and awareness about this information can be beneficial during trading sessions.
If you are able to determine the best time to trade, you need not spend a lot of time following the movement of assets all day long. All that you need to do is to follow the best time for trading in binary options and you may be able to make profits consistently. Look at major economic events, too, to determine the best time for binary options trading.