What Times Are Favorites To Trade Binary Options?
Unlike traditional stock market or forex trading where gains are slow and you need lots of market volatility to generate decent returns, binary options do not call for a great deal of price action movement to generate great returns very quickly. So, you might be asking when is the best time to trade binary options? The answer is really anytime, all the time, any weekday, 24 hours a day!
Ok, so maybe that's a little over the top. Yet there are particular times throughout the day that are excellent to trade binary options, so I want to examine 2 of those specific timeframes.
Trading On The Market Open
This is a little tricky. Traders either strongly like or highly detest trading on market open. Stocks move with so much volatility that at times it feels like a crap shoot in deciding on an appropriate position to take. Binary options brokers are aware of this also, so many of them have market open trading restrictions during the volatile opening periods of certain markets, therefore you can't get in on the wild opening action with many brokerages. These market open time restrictions range anywhere in between 5 minutes after market open, right up to approximately a half an hour.
For those of you who like to see big binary option price action movements, you may want to trade binary options as near the market open as possible. Some brokers even allow placing positions the night before, right after market close, so that you can lock in your trade for the next morning's very first trading period. One benefit of trading near to the open are these huge moves, which are common at opening, could put your trade firmly in the money within moments of placing the trade.
Having said that, the binary trade could move against you instantly, positioning your trade strongly out of the money. Don't forget when you trade binary options you always have the capacity (at least till the lock out period starts) of hedging your trade in the opposite direction, too. This can be extremely useful if you placed your position the night before but there was serious reversals during the "overnights" and now the opening market is going against you.
Trading On The Market Close
While binary options brokerages may vary on what time they'll permit you start to trade binary options on a day-to-day basis, they all let you trade all options right up to the close of the markets. During the last hour of trading you will certainly, at times, see different asset movement patterns arise that enable smart binary options traders the potential to take high yield / lower risk positions on assets just before market close. Some traders will concentrate entirely on these market close positions and have made serious bank doing it. This does take a whole lot of determination, though, as some wait all day and finish up not placing any sort of trades, which could be a frustrating point. But discipline is all-important for successful traders.
While these pattern setups do not take place everyday, it is most ideal to learn them as you begin to trade binary options. FreeBinaryOptionStrategy.org has a ton of videos teaching how to recognize various setups using a variety of indicators. Check out the site and learn a few professional tricks for binary options trading.
Other related post: Trading Discipline