When to Trade Binary Options

    August 23, 2016

    Risk can be exciting, and with binary options trading, you get that intoxicating blend of risk and reward. When it comes to knowing the best times when to trade binary options, you need to understand the peak trading hours. Because generating generous profits is, after all, why one trades binary options at all.

    All assets have their best trading times. But currency pairs are special in that their price movement is linked directly to the operating hours of the Forex market.

    Just some of the rewards you can benefit from with binary options and knowing the best times to trade are –

    When to Trade Binary Options

    Higher risks connected with binary options lead to higher returns on your investments.

    • Binary options are easier to buy and sell than Forex for instance. In fact, even beginner investors can take a chance on binary options
    • To make binary options more appealing, some brokers who  a small return on the money you invested on a losing bet
    • Binary options have a fast turnover rate and for this reason, you can enjoy a quicker payout.
    • Brokers offer free accounts. They offer you a demo account which is free and which allows you to ‘trade’ without any real money. Such practice helps you get a feel for how to invest
    • With binary options, you can enjoy trading with a variety of assets

     

    When to Trade Binary Options – Overlap times mean an Increase in Market Activity

    Most people will say that the best time to trade binary options is when it suits you because the forex market is open for trading Monday through Friday. The market is liquid, and there are also times when trading is more active than at other periods, namely when some of the world markets overlap. A typical example would be  New York and London between 8:00 am to 12:00 noon EST (EDT). It is in these overlap times that we find an increase in market activity.

    When to Trade Binary Options – Each Hour Reveals different Price Behaviour

    Although binary options are a global trade, not all assets will be available all the time. Be sure to check carefully when the financial markets for your particular assets are open for trading. You need to know that every hour will reveal different price behaviours according to the specific marketplaces that are open.

    Traders need to understand these times and actions so as to capitalise on price movements. Typically, traders in the know say that the hours between 8-17 GMT offer the greatest trend trading opportunities.  And that the hours between 13-17 GMT exhibit the largest movements.

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    When to Trade Binary Options – There’s a ‘Dangerous’ time to Trade

    Always understand the current state of the market. You need to know whether the market is trending or consolidating – whether it is quiet or volatile. With a strong trend, you will stand a better chance to hold a trade for larger gains. You should consider market conditions before deciding whether or not to exit your position.

    Rising stock-market volatility is costly for those investors who buy and sell stocks just as soon as the market opens, as this is considered a dangerous time of the trading day. It has been researched and found that buying and selling by individual investors is always massive straight after the market opens in the U.S.

    When to Trade Binary Options – Let the Markets Settle Down

    People who know how the markets work say that in the morning early there is an overreaction to overnight events and news from other markets. They say investors will fare better if they don’t make quick decisions based on opening swings. They advise rather to let the markets settle down a bit so that you have a better idea of how the actual market stands before you trade.

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    All info was correct at time of publishing