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The Best Times to Trade Binary Options Lesson 1: The Best Times to Trade Binary Options Welcome to our new series on binary options trading for beginnerswhere we will take you by the hand and show you a systematic way to trade binary options. Today we will touch on the best times to trade binary options.
Some of these assets are traded on a hour basis: here we have currencies, commodities and stock indices. Stocks are not usually traded on a hour basis.
The Best Times to Trade Binary Options
The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market.
The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market. Trading works best when the market is bubbling with activity from traders all over the world. When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires.
- And part of that is coming up with a trading plan.
- After all, there are just two ways a trade can go: and it is not like there are many tools or ways of trading that can be used to create diverse trading systems, as is the case in Forex Trading.
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Even though assets like currencies and commodities are supposed to be hour markets, there are only certain times of the day when the market activity is at its maximum. This is usually when we have an overlap of the trading zones trading sessions of binary options the world. Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.
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Timing for Stocks As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. As such, the US markets are used as the benchmark of checking the trading hours for stocks.
US stock markets usually trade from 9. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation. The diagram below gives a perfect illustration of this.
You also need to know that the local currencies of the active time zones will have increased volatility over others. CL — 9am EST to 2.
The Bottom Line Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That's why they're called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time? Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.
As such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more actively traded from 9.
Full information on trading hours is available on the CME Group website.
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Once you master the trading hours for each asset, you are one step away from potential profitability in the market.