Time Your Success with Binary Option Trading

Time Your Success with Binary Option Trading

Submitted by adil on Mon, 08/18/2014 - 21:00

Learn to Time Your Success with Binary Options!

There are some important aspects of binary option trading that separates experienced traders from the novices. One such aspect is the trading time. Not every time is good for trading, but most new traders are unaware of this detail.

The best times:

Most traders know the four asset classes available for trading: stocks, commodities, currencies and indices. Almost all online trading platforms attract traders by claiming:

• The trader can trade on multiple assets simultaneously
• The trading is available 24/7 to every trader

These attractions are actually real, but most new traders get the wrong idea from them. If a platform is offering services 24/7, that doesn’t mean the trader should trade whenever he wants.

The best time to trade a particular asset class depends upon various factors. One of such factors is volatility. It considerably affects market performance of every asset. High volatility usually occurs when the market activity increases and the market forces struggle to gain overall control. Such opportunities are very favorable to gain high profits from a few trades.

As mentioned earlier, the best time to trade binary options also depends upon the asset class. Every trader knows that stock markets are not open 24 hours, so it is totally unwise to trade with stocks 24/7. Even when it is known about commodities and currencies that they are available round the clock, there are only a few occasions when the market activity is at a sufficient level for making profits.

The best time to trade stocks: If you are in America or living in a region with a similar time zone, the local stock markets operate 8 hours from 9:30AM EST to 4:00PM EST (Eastern Standard Time). If you are interested in European stocks, then remember that FTSE operates between 7:00 GMT to 15:30 GMT. The German stock market Xetra Dax operates in-between 8:00 GMT and 16:30 GMT. You should remember that stocks of companies that are not located in the US are designated in the local stock markets as ADR (American Depository Receipts).

The best time to trade currencies: In binary option trading, currencies are traded on as pairs. Surprisingly, the most profitable pairs are those with currencies from completely different time zones. Therefore the best time to trade currency pairs is when the time zones of London and Asia overlap, or when the US and Asian time zones correspond. This information must be correlated with the currency pair chosen for trading to gain the most profits.

The best time to trade commodities: The best time to trade some of the major commodities is given below:

• Gold – 8:20AM EST to 5:15PM EST
• Silver – 8:25PM EST to 5:15PM EST
• Crude oil (NYMEX.CL) – 9:00AM EST to 2:30PM EST
• Natural gas – 9:30AM EST to 5:15PM EST
• Corn – 9:30AM EST to 1:15PM EST

Correlating the above times with the operational timing of the exchanges that are utilized to trade commodities will be very beneficial.

The best time to trade indices: Indices are the performance indicators of major stock exchanges such as NASDAQ, S&P and Dow Jones which are available from 9:30AM EST to 16:30PM EST.

Binary option trading is all about precisely predicting what the market price will be at the expiry time, so timing is very crucial.