When to Trade and When Not to Trade Binary Options

The binary options market is unique in that it is one of the few markets where traders can trade assets of different classes from one trading account. Each of these assets all have their own peculiarities in terms of when they are traded on their respective exchanges. In order to know when to trade or when not to trade the binary options contracts for these assets, traders must be fully aware of the times in which these exchanges operate.

The forex market is a 24-hour market, and traders have round the clock access to trading binary options contracts on currencies. But this does not automatically mean that traders should trade currencies anytime they like. There are also certain times when currencies display maximum volatility and these are the times that traders should target to trade forex binary options contracts.

Other assets are not traded on a 24-hour basis, and so traders must know when these assets are available for trading on their various exchanges, and consequently, the binary options market.

Best Trading Time: Stock Indices/Stocks

Stocks are only traded when the respective exchanges on which they are traded are open for business. In the same vein, the stock indices that represent the exchanges on which stocks are traded can only be traded when they are open. The following table shows the trading times for these assets:

Index Asset/ExchangeTrading Times (GMT)
Dow Jones, Nasdaq, S&P5001.30pm – 7.30pm GMT
London FTSE1007am – 3pm GMT
Xetra DAX (Germany)7am – 3pm GMT
Nikkei 225 (Japan)11.30pm – 6.30am GMT


 

Best Trading Times: Commodities

Commodities are traded on the commodities exchanges: Chicago Mercantile Exchange (CME), Globex, New York Mercantile Exchange (NYMEX), etc. Commodities are peculiar because they are not only traded on physical exchanges using the open outcry system, but also on online exchanges. This means that for each commodity, there will probably be two trading periods in a single day.
The trading times for the commonly traded commodities are as follows:

Commodities

Commodities

Energy Commodities

Energy Commodities

Energy Commodities

It is very important to keep a tab on the trading times for the various asset classes, so that traders can appropriately time when to make their trades.

Trading on Weekends

Generally speaking the markets are closed over the weekend. BUT there are options to still trade with over the counter offerings. Sure, the volume is much smaller and the available options are limited but there are very few brokers giving you the chance to do so. One of them is IQ Option which became the largest broker anyways. The reason for that is their constant innovations – like the over the counter weekend trading.

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