Monday, September 30th, 2013 by Tim Lanoue
Binary Options Trading Hours
Whether you are new to binary options or a veteran one variable that always comes into play while trading would be the time of day that you choose to trade. One of the best advantages about trading binary options is that you are given a large number of assets to trade from allowing you to be as dynamic of a trader that you want. However, a common problem that many novice traders are running across lately would be the correct time to trade certain assets. When it comes to trading binary options there are four main assets that we can choose to trade from including currency pairs, stocks, indices, and commodities.
Trading Hours: Currency Pairs
Currency pairs have become one of the most popular assets traded in the online trading industry due to Forex trading. Currency pairs in lenience terms mean the rate of one currency pair versus another currency pair. One popular example of a currency pair would be the Euro dollar and the U.S. dollar, commonly seen as Eur/Usd. When it comes to trading currency pairs it is best to trade during the overlap of the London/Asia trading session. As you can see in the picture below the overlapping of these two trading sessions take place from 7 A.M. EST to 11 A.M. EST. One last note that should be kept in mind is that if you plan to trade currencies to take notice of which pair you are trading and notice if they are local to the time zone in which you are trading. These local currencies will have more volatile than if you were to trade them before or after hours of that time zone.
Best Trading Hours: Stocks
One of the best aspects about stocks is that they are typically traded for 6-8 hours during the New York trading session allowing traders to trade for an extended period of time. A stock by definition is a share of a company held by a corporation or a group. When trading stocks one simply is predicting whether the value of the stock will rise or fall within a certain time period. The only time to trade stocks would be during the US hours which fall from 8 A.M. EST – 5 P.M. EST.
Best Trading Hours: Indices
Indices can be a difficult asset for many people to understand but the most important factor that you need to know about indices is that they are Contract for Difference (CFD) instruments that measure the movement of trading exchanges. Examples of indices would be S&P 500, DAX 30, and NASDAQ100. The best time to trade indices would be from 9:30 A.M. EST – 4:30 P.M. EST, so during the New York trading session.
Best Trading Hours: Commodities
Lastly, commodities are a unique group of assets because certain commodities are best traded during certain times of the day; there really is no one perfect time to trade every commodity. With that in mind below is a list of common commodities and their ideal trading hours.
Trading Hours by Asset
Gold – 8:30 A.M. EST to 4:30 P.M. EST
Silver – 8:30 A.M. EST to 4:30 P.M. EST
Crude Oil – 10:00 A.M. EST to 4:15 P.M. EST
Natural Gas – 9:30 A.M. EST to 4:30 P.M. EST
These hours are when the above assets are most active meaning that they are traded the most during these hours. If you follow these trading time zones with your asset kind you may find more success because the markets will be more active and not as flat. If you have any questions please feel free to post a comment below.