When is the best time to trade binary options? Choosing the best time to trade binary options

There are many factors that influence the efficiency of trading. One of these is time. You can do everything according to the strategy and advice of experienced speculators, but if you make a deal at the wrong time, you will lose your investment. To avoid this, we will choose best time for trade binary options. So, are you ready? Then let's start.

3 main trading sessions

We will not explain what time zones are, you already know this for sure. Let's talk about how they affect trading. Major world exchanges start working in the morning and finish in the evening, but on their own time.

There are 3 main trading periods:

• Asian;
• European;
• American.

Also, sometimes there is a Pacific trading session, during which they actively trade on the stock exchanges of Australia and New Zealand. But it works almost in parallel with the Asian exchanges, which is why it is referred to the Asian session.

Why you need to know the schedule of each trading period. To understand when is the best time to trade binary options. A certain asset shows strong volatility during the operation of one of the world's exchanges. The rest of the time, quotes move smoothly and in a narrow price range. Trading at this time is too risky.

To make it clearer, take a look at the table below. It shows the schedule of the trading session, the exchanges of which countries are working at this time, which currencies are the most active.

To determine the best time for binary options, knowing only the schedule of the desired exchange is not enough. Let's look at the features of each trading period.

Asian trading session

For most traders, the period from 03:00 to 12:00 Moscow time is far from the best time to work on binary options. This is because at this time the currency pairs are the most inactive.

Take another look at the table above. We noticed that during the Asian period the most active currency pairs are USD/CHF and GBP/CHF instead of NZD/USD and /AUD/USD. Despite the fact that during the Asian session the latter have a peak of activity, they still cannot surpass the assets with the European currency. The first reason is that Asian and European stock exchanges work from 11:00 to 12:00. Therefore, at the end of the working day in Tokyo and Sydney, the pound, euro and franc begin to become more active.

The main reason that the currencies of the Pacific and Asian countries cannot outperform the currencies of Western countries is that the Australian and New Zealand dollars themselves are not very volatile. The daily trading range of NZD/USD and AUD/USD does not exceed 50 pips. Therefore, these currencies are traded only in rare cases.

The Japanese yen is more active. The USD/JPY daily range is approximately 55 pips. But the pair GBP / JPY for the trading session overcomes almost 100 points.

Asian session - the best time to work on binary options? For many traders, no. But such moderate activity of some currency pairs is suitable for trading with an expiration of 15 minutes to 2-3 hours.

It is more difficult to predict the further movement of Asian and Pacific currencies. This is another reason why traders choose the European or American session.

European trading period

If you ask traders when it is better to play binary options, many will say that during the work of European exchanges. The trading range of the most active currency pairs during this period reaches 120-140 points. But these are not the only features of trading during the work of European exchanges. Let's look at the rest:

• Due to high price fluctuations, trading in some assets is too risky for beginners;
• During this period, the Moscow Exchange operates, so if you are wondering what time is better to trade binary options with the ruble, here is your answer;
• Many traders from the CIS trade during the work of European exchanges, not because assets behave differently at this time, but simply because it is more physically comfortable for them to work;
• Activity during the session is inconsistent. Until 13:00, the first wave of increased volatility lasts. At this time, large players make the bulk of purchases and sales. After that, there is a decline in activity. It lasts for several hours. And along with the opening of American exchanges, activity is increasing again.

American session

Many traders say that the best time to trade is during the European session. But fans of speculation during the work of American stock exchanges are not much less.

During this period, news is released for the United States and Canada. In addition, the opening hours coincide with activity in Europe. What does it say? About high market volatility. Let's also look at other features:

• Trends formed during the work of European stock exchanges receive a new impetus;
• The session is also divided into 2 halves. In the first part, it is better to rely on fundamental data, and in the second, we recommend giving preference to technical analysis;
• The highest activity is observed in the period from 16:00 to 18:00;
• Trading from 16:00 Moscow time is great for short-term trading. But medium-term deals should be concluded on pairs with the dollar and the euro with caution.

When is the best time to trade binary options? Choose the right day of the week

To determine when it is better to play binary options, you need to take into account not only the time, but also the day of the week. For clarity, take a look at the screenshot below.

This shows how many pips the major currency pairs move during the day. As you can see, it is best to trade from Tuesday to Friday. On Monday, the activity is slightly lower, as the exchanges only enter the working week. On Sunday, the market generally stands still. That is why almost all brokers do not work on weekends.

On Friday, it is better to trade before 20:00. After that, market activity is rapidly declining. Everyone wants a weekend.

You must independently determine for yourself the best time to trade, based on the strategy and preferred assets of work. At the same time, you need to take into account the working hours of world exchanges, the day of the week and the release of each important news.

Sometimes it's hard not to lose sight of something. But over time, you will get used to it and notice that trading has become much easier and more profitable.

All brokers allow you to work with options around the clock, some make it possible to trade even on weekends. But the effectiveness of trading is highly dependent on time, and today we will study this issue in more detail.

Opening hours of world exchanges

If you look at the chart of any currency pair, you can see that the activity during the day is distributed extremely unevenly. The main movement falls on the daytime, and at night the price moves in a horizontal channel, there are no major players on the market, there is simply no one to move it.

So the best time to trade binary options is during the opening hours of the main financial centers of the world. At 09:00, London enters the game and this is clearly visible on the chart. Areas where the working hours of several exchanges overlap are characterized by increased volatility.

For example, the stock exchanges of New York and Chicago enter into business when Europe has not yet closed. A second wave may begin in the same direction that was set at the opening of Europe.

Much depends on which currency pair you work with. If only for majors and main crosses, then the proposed mode of operation is suitable. You can trade from morning until the close of the American stock exchanges. During the Asian session, volatility drops sharply.

Everything written above concerned intraday trading. But on the days of the week, market activity is also distributed unevenly.

The period from Tuesday to Thursday is ideal for trading, in most cases it is on these days that the main weekly movement occurs. Monday and Friday form candle shadows on the weekly timeframe. On Monday, the market has not yet decided, and on Friday, many take profits before the weekend, hence the small rollback.

As for the best times to trade binary options, Monday and Friday are not necessarily to be ignored. Just reduce the size of your usual bet these days and be especially careful when choosing signals.

Is it worth trading on weekends and at night

Some binary options brokers, such as Binomo, allow you to trade on weekends as well. Usually, work can only be done with Bitcoin.

It just doesn't make any sense. At this time, there are no strong movements, which means that you can try trading strategies for a quiet market, for example, trading on a rebound from the boundaries of a horizontal channel. Insurance brokers just cut interest these days.

As a result, instead of payments at the level of 70-85%, the trader will receive at best 40-50%, and maybe less. That is, the percentage of profitable trades must be higher than usual in order to work profitably.

For overnight trading, the problem is the same, only the payout percentage for in-the-money options will be even lower. Profit can be reduced up to 10-30% depending on the asset and its volatility. As a result, the ratio of profitable trades to losing trades at night should be at the level of 1/7-1/10 in order to stay in the black. In addition, if the chart moves in the range of 20-30 points at night, then it becomes much more difficult to make a forecast, the result of the transaction is highly dependent on random price fluctuations.

Do not forget that a trader needs rest. Working on weekends and at night is not conducive to this.

Conclusion

As for when is the best time to trade binary options, then the best option– trading from Tuesday to Thursday during the work of European and American exchanges. In the case of binary options, it doesn’t matter how long the price will go in the right direction, but the main movement occurs precisely in this period of time and it will be easier to predict the price behavior. You will be less dependent on random price fluctuations.

Binary options are easier to learn than Forex. However, for success, you need to take into account many different factors and features. Choosing a reliable broker and effective strategy- it is important. But you also need to know When is the best time to trade binary options? We'll talk about this today.

What is a trading session?

5 days a week (Monday-Friday) the financial exchanges of the world's largest cities operate in the world. It is on them that every trader earns, sitting at his computer. And given that they work at local time, you can trade at any time of the day.

To make it easier to navigate, there are 4 trading sessions:

• Pacific - takes into account the working hours of the Sydney Stock Exchange, as well as the Wellington Stock Exchange. Starts at 01:00 and lasts until 09:00;
• Asian. Corresponds to the work of the Tokyo Stock Exchange, that is, from 03:00 to 12:00;
• European. The exchanges of London, Paris and other cities participate. Opening hours - 10:00–19:00;
• American (New York) - 16:30-22:30.

So that you do not get confused in time zones, the opening and closing hours of trading sessions were indicated in Moscow time.

How do assets behave during a particular session?

To determine the best time to trade binary options, knowing the schedule of trading sessions is not enough. You need to understand the features of each and how they affect the movement of assets. For example, during the Pacific session, the Australian dollar is the most active on the world currency market. You can also add NZD (New Zealand dollar) to it.

During the Asian session, the Japanese yen is added to the active dollars from Oceania. But still, the exchanges of Tokyo, Sydney and Wellington do not attract traders from the West. How this is explained, you will learn a little later.

During the European session, the stock exchanges of London, Paris and other cities of the Old World begin their work. As a result, the British pound, euro and Swiss franc are the most active.

The last three hours of the European stock exchanges coincide with the first hours of the American session. Therefore, the US and Canadian dollars are added to the above currencies.

However, in order to decide When is the best time to trade binary options? it is necessary to take a closer look at the behavior of assets during a particular session.

Asset behavior

The best time to trade binary options– 10:00–22:30, that is, during the European and after the American session. At least that's what most traders think. And there is a reasonable explanation for this.

Our traders and those who live to the west during the Asian and Pacific session prefer to sleep well before trading. And all because at this time there is low liquidity. In addition, the same Japanese yen is considered the most unpredictable currency, which, even with the most verified analysis, can give inaccurate entry signals.

Therefore, if your strategy for making money on binary options is suitable for different assets, and does not focus only on JPY, NZD, AUD, we recommend that you reduce risks and trade during the opening of European and American exchanges. But if you still like night trading, spend more time studying and analyzing assets.

The European and American sessions are distinguished by their activity, especially from 16:30 to 19:00 (Moscow time), when exchanges on both continents operate simultaneously. Euro, dollar, pound, franc, as well as the ruble. At this time they are especially liquid.

Choosing a strategy

So what is the best time to trade binary options? Depends on which strategy you choose. First, if you trade based on the results of technical analysis, you should follow the economic calendar (available on the largest portal Investing.com). The release of important news can lead to a sharp jump in prices. Therefore, 15-20 minutes before the release and 20 minutes after the publication, you need to refrain from trading.

Fans of short-term trading who trade using the “Scalping” strategy do not need high market volatility, but a protracted flat will not bring profit either. Therefore, you need to choose an asset that shows a smooth price movement. To do this, during the European session, it is better to choose an asset with a yen or another currency, the exchange of which is closed at the time of trading.

A bit about OTC

Finally, let's talk about Over the counter. All exchanges operate 5 days a week. But many brokers offer trading on weekends as well. Don't worry, it's not a scam. The fact is that the exchange is an intermediary between the buyer and the seller. On weekends, trading is conducted directly between the largest banks in the world. Trading these days is characterized by worse predictability, but a smoother movement. Therefore, for some OTS - this is the best time to trade binary options while others rest on weekends.

We hope that the knowledge gained will allow you to understand what time is best to trade binary options. Thanks to this, you will be able to use your trading strategy more effectively and save yourself from simple but common mistakes.

Many traders are concerned about the question - "what is the best time to trade binary options?". It is impossible to give an unambiguous answer to the question, because there are a number of nuances. At first glance, it may seem that the futures market works around the clock. This is exactly what many binary options brokers tell us. However, in fact, there are several trading sessions that have a significant impact on the overall market situation.

Information about trading sessions

Similarly, with different time zones on the planet, there are several trading sessions, among them - European, Asian, American and Pacific. The Forex derivatives market (and binary options) operates on working days of the week (Mon–Fri), on weekends (Sat–Sun) and international holidays the exchange is not working.

Schedule of trading sessions:

• European - with 10:00 before 20:00 by Moscow time;
• asian - s 03:00 before 13:00 by Moscow time;
• american - from 16:00 before 02:00 by Moscow time;
• Pacific - from 23:00 before 10:00 by Moscow time.

The European financial center is Zurich, Paris and Frankfurt; Asian - Singapore, Tokyo and Hong Kong; American - New York and Chicago, and the Pacific - Sydney and Wellington. The schedule of trading sessions on the market is directly related to time zones - depending on the sunrise and sunset in a particular part of the Earth. The end of one trading session and the beginning of another is always accompanied by changes in the market - it seems to “come to life”, new movements begin.

Changes in trading sessions are a dangerous time for market participants. During this period, unpredictable price movements are possible, which can lead to losses.

Traders should always keep this in mind when compiling trading strategy. A significant percentage of cases of a sharp change in quotes, contrary to the available signals of technical analysis, is explained by entry into trading a large number speculators from another trading session.

What assets are affected by trading sessions?

The Forex currency exchange, unlike commodity and commodity exchanges, operates around the clock. It is easy to guess that an active trading session has the greatest impact on the currency of those countries where financial centers are located. For example, European currency speculators trade mainly in those assets where the euro (EUR) is present.

It is appropriate to note here that every day from 16:00 before 20:00 there is an overlap of two trading sessions - American and European. It is during this period that there is a pronounced volatility of European currencies traded in tandem with the dollar.

The optimal time for trading US and European currencies is the period from 4 pm to 8 pm Moscow time.

The same principle applies when trading other currencies. The algorithm is simple. When trading a currency pair, the exchanges of the two countries take part. For example, EUR/JPY - euro and Japanese yen. Accordingly, the most lively trades for this pair are held in the period from 10 before 13 hours Moscow time. It was at this time that the overlap of two sessions - European and Asian - was observed. During the rest of the day, there is a relative lull, and pronounced trends are almost non-existent.

The picture above clearly shows the schedule of 4 trading sessions. The display scheme allows you to see the hours when two trading periods overlap. The greatest period of joint activity is observed in the Pacific and Asian sessions - from 2:00 before 10:00 .

During certain trading sessions, there is an increased volatility of the currencies of the respective countries - European (eg EUR or CHF), USA (USD), Pacific (AUD, NZD, etc.) and Asian (eg JPY).

The best time to trade binary options depends on the currency pairs traded. As for stock indices, this issue will also be discussed further. Commodities such as gold or silver can be traded at any time as they are not tied to any particular country. However, the greatest activity in this market sector is observed during the European trading session.

Market activity by trading sessions:

1. European. Actively traded - EUR/USD, USD/CHF, GBP/USD, EUR/GBP, EUR/CHF, USD/CAD. Calm in trading on pairs - AUD / USD, EUR / JPY, USD / JPY, EUR / AUD / GBP / JPY, AUD / JPY.
2. Asian. Actively traded - EUR/AUD, USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY, AUD/USD. Calm for pairs - EUR/CHF, EUR/USD, GBP/USD, USD/CHF, USD/CAD, EUR/GBP.
3. American. Actively traded - GBP/USD, EUR/USD, USD/CAD, USD/CHF AUD/USD, USD/JPY. Trading calm - AUD/JPY, EUR/AUD, EUR/CHF, EUR/GBP, EUR/JPY GBP/JPY.
4. Pacific. This is the quietest period on the currency exchange. The revival begins during the coincidence of the Pacific and Asian session (lasts 7 hours). Trading is conducted on the pairs AUD / JPY, NZD / USD, AUD / NZD, as well as other pairs involving the currencies of Asian and Pacific countries.

Trading sessions directly affect index trading. It depends on the opening hours of the exchanges. For example, you can trade the NASDAQ only between 17:30 before 00:00 Moscow time - at this time it works electronic system stock trading company based in New York. A detailed schedule of the world's largest exchanges is in the picture below (Moscow time).

conclusions

When answering the question, when is it better to trade binary options, it should be noted that it depends on the assets traded and on the strategy preferred by the trader. During the activity of key trading sessions, there is an increased volatility of certain currency pairs. This nuance must be taken into account when building a trading strategy.