If you are starting as a binary trader, you must know when and where to put money. Trading is not always about choosing your asset and predicting; trading times play a major role as well. In order to take advantage of the market, you must place your bet at the right time.
What you will read in this Post
The stock markets and their timings
The maximum trades are made using the stock exchanges. These four markets are considered as the major stock markets:
- The New York Stock Market
- The Tokyo Stock Market
- The London Stock Market
- The Hong Kong Stock Market
- The Sydney Stock Market
The timing for your trade is important because these markets open and closes at different points. You will find these markets active according to your location or time zone. All these markets remain open for approximately 9 hours. According to the Greenwich Mean Time (GMT) Zone, the Sydney market opens when the New York market closes. The London market partly covers the time when Tokyo and Ney York market operates.
Here is the Stock market time:
- Sydney – 9 pm to 6 am GMT
- Tokyo- 11 pm to 8 am GMT
- London-7 am to 4 pm GMT
- New York – 12 pm to 9 pm GMT
- Hong Kong – 1:30 am to 8 am GMT
This lets you trade the binary options 24 hours a day and opens numerous opportunities for you to seize and gain profit.
Best time to trade Binary Options
The binary options include assets like stock Indices, Forex, Stocks, and Commodities, and you can place your trades in any of them. Although they are available all day, most traders wait for a specific time to invest, and that is when the market reaches its best.
The best time considered to trade is when the markets overlap with each other because that increases the number of active traders at that time, and the actions increase too. The time when the stock market timings coincide are:
- The Tokyo and Sydney stock market and
- When the London stock market joins the New York and Tokyo market.
Irrespective of what kind of trading conditions you prefer, establishing perfect trading time with these markets is necessary. For example, if you are a ranging market trader, you want to predict the right time frame for the short positions.
Not all assets are available 24 hours, like the stocks, which can be traded at certain hours only. But for the currencies, you can invest at any time. Similarly, every asset has its own ‘best’ time to get traded.
(Risk warning: Your capital can be at risk)
Currencies are traded on every stock exchange, and because of the different time zones, you can trade them any time during the weekdays. The currencies of overlapping major stock markets also affect the other currencies and make them impulsive. Hence, you can choose local ones to trade in as well.
As a trader, you can choose to trade in the morning, evening, or noontime. Following are the most traded currencies during each phase of the day:
Trading between 5 am to 12 pm (GMT)
Trading between 12 pm to 7 pm (GMT)
Trading between 7 pm to 5 am (GMT)
Out of these, most forex trades are executed between 12 pm to 7 pm GMT.
#1 Trading stocks
Many stocks are not present all day long and are mostly traded for 6 to 8 hours. This is because they are available only when their stock market index is opened. For instance, you can trade the Japan-based company’s stocks in the Tokyo exchange market only. Similarly, the Australian stocks in Sydney, British stocks in the London market, and American stocks in the New York Stock Exchange.
Also, notice the other important stock markets timings as well like:
- The Financial Times Stock Exchange (FTSE)
It is another European stock market that is available for trade from 7 am GMT to 3:30 pm GMT:
- Xetra Dax
Based in Germany, Xerta Dax operates from 8 am GMT to 4:30 pm GMT.
For better results, always pay attention to the market conditions.
Commodities are common in binary trading and traded mostly when they are cheap. The commodities which attract the most traders are- gold, silver, crude oil, and natural gas.
The mean of the trading time when they are executed the most is as follows-
- Gold – 12:20 pm to 9:15 pm GMT
- Silver – 12:25 pm to 9:15 pm GMT
- Corn – 1:30 pm to 5:25 pm GMT
- Crude oil – 1 pm to 6:30 pm GMT
- Natural gas – 1:30 am to 9:15 pm GMT
You can also trade by categorizing them under the exchanges responsible. Like, gold is mainly traded under the OTC London Market, and the agricultural items are contracted under Chicago Mercantile Exchange.
#3 Index Futures
These are relatively new concepts in trading. It is that contract where you transact an asset in the present day to let it settle in the upcoming future. Some of the common index futures are S&P500, NASDAQ100, and Dj30.
The time to trade them in the US market is when they are most active, and that is between 1:30 pm GMT to 8:30 pm GMT.
Can you trade Binary Options on the weekends?
Every trader once in his lifetime has asked this question that can he trade on weekends as well? For the binary traders, the answer is yes. You can make your trades through a suitable binary options broker all week long.
The trading can be done only when the market is functional and the time zones give you an upper hand. But the weekends are off days, which makes people assume that no trades can be executed. However, this is quite a fallacy only, and you can trade 24/7 on binary options.
This is possible because different countries have different work schedules, and as a result, their markets operate on different days. The biggest example will be some of the middle eastern countries. Some have business days from Sunday to Thursday, while others work from Saturday to Wednesday.
Now that you have at least one open market, you can trade anytime. With the middle east markets being effective even on Saturdays and Sundays, you can seize any trading opportunity.
Following are the most used financial industries from the middle east during weekends and their stock market timing.
- Kuwait Stock Exchange: The national stock exchange of Kuwait has trading time from 6 am to 9:30 am GMT from Sunday to Thursday. And the closing auction is conducted between 9:30 am to 9:40 am GMT.
- Dubai Financial Market: DFM is one of the biggest exchanges in the United Arab Emirates. It works from Sundays to Thursdays through 6 am GMT to 9:50 am GMT.
- Tadawul Index: It is Saudi Arabia’s only exchange market. The trade timing is from 7 am to 12 pm GMT.
- Tel Aviv Exchange: Located in Israel, Tel Aviv starts functioning from 6:59 am and closes at 12:39 pm GMT on Sundays. Whereas from Monday to Thursday, its trade timings are 6:59 am to 2:14 pm GMT.
(Risk warning: Your capital can be at risk)
Why should you trade during weekends?
Trading assets on weekends might not be everyone’s cup of tea. This sure does require a strategy and plans, but there is no reason not to try them. You can definitely think about performing your deals during the off days.
Here are some reasons explaining why you should use weekends for your trading purposes-
A better time to learn and earn
Weekends can be boresome for many of us. Hence, you can put some effort into the binary options deals. You can study the trends, make a strategy and use it while making a trade.
Different markets act differently. Just as the stock market timings are not the same, the western market’s activities are distinct from that of the Asian markets as well. And this gives you ample scope to watch the trends and form your strategy even if your asset is not open at that time.
This will generate more profit as well as future deals.
Provides suppleness to the traders
For the working class who has time only on the weekends, this is the best way to trade. With the weekend binary options trading, everyone can gain.
You can choose your hours at your convenience, and it is totally flexible.
You can pay better attention
Trading is not a simple game. You have to remain attentive, see through the chart patterns, and hit a bull’s eye. On weekdays, many of you are busy with work and other chores.
The off days will give you extra time so that you can pay more attention to your binary platform.
Reasons why you shouldn’t trade on weekends
Even though there are many advantages when you trade on weekends, it has some of its limitations too.
#1 Weekend narrow downs the number of assets
On the last days of the week, the assets are comparatively less because the stocks and the indices can be traded only during the activation of their stock exchange.
For example, Japan’s Nikkei 225 Stock Average and Nippon Yusen Kabushiki Kaisha can be traded only in the Tokyo exchange. When the Tokyo stock market timings are over, you cannot trade these assets.
Only the middle eastern stock market timing matches the weekend trade timings. But if you are not into those markets, the number of assets is very few for you. However, this is not a dead-end. You can still earn some profit by using technical analysis on the price movements.
#2 Markets in different time zones
The difference in stock market timings is both boon and a bane. On the one hand, you have 24 hours of trading time, but on the other, these differences might not let you trade your desired assets.
For example, the middle eastern stocks exchange timings are not easy to be adjusted by the UK or US trader because the DFM is 8 hours ahead of New York Exchange. So, either you have to leave that asset or wake up late at night to execute your trades.
#3 Your broker might not let you perform the trades
Some brokerage firms take their days off on weekends because not many traders want to use the platform for technical analysis.
To trade on weekends, choose a broker who supports weekend transactions. You can also contact customer support for more information regarding the trade timings.
#4 Low activities
Due to closing hours, the market actions become flat, and the trading volume drops, giving you a low responsive chart and not a healthy market.
However, these restrictions and be disabled with few alterations by finding an idea brokerage firm and using other available assets.
What time does Binary market close?
The binary options are a versatile market with numerous assets available to trade in. but all these assets are not present all the time. This is because different places have different time zones.
In the binary market, forex and stocks are heavily traded, especially during the overlapping of major stock market time.
The US stocks are widely popular, and they are opened usually between 1:30 pm GMT to 8 pm GMT (or 9:30 am EST to 4 pm EST). the activities face a drop between 4 pm GMT and 5 pm GMT. (12 pm and 1 pm EST).
On the weekdays, European stocks like Xetra Dax and FTSE are traded from 11 am to 7:30 pm GMT. These are the standard times when the binary market opens and closes. But the trading time highly depends on the binary options trading platform you are using. You can always contact customer support to know the trading times for your desired assets.
Strategies you can use during weekends
Due to low activities on weekends, the market is not that responsive. Hence, planning and strategizing the weekend trading on binary is the best option to gain profit.
Following are some most basic and widely used strategies:
#1 Gap trading
Gap trading means price jumps and is used in the forex market. This trading strategy is best for the weekend as you can trade the gaps in the currencies. The price jumps are caused when some force moves the market and triggers the price to go from one level to another whilst skipping some price levels in between.
- What are the reasons for gaps?
There are many reasons for the occurrence of price gaps like, when the volume is high, they can be created once the new movements are about to start.
Closing gaps are witnessed mostly on weekends because usually, these days are taken off by other traders, and the new movements are highly implausible. And not a large number of traders are required to form the closing gaps. When those traders invest in the same direction, other traders believe it to be a mistake, start investing in another direction.
For the upward gap, they will sell their assets, causing a fall in the market, and eventually, the gap will close. In the downward gap, the investors will start purchasing assets, causing a rise in the market again, which will lead to a close in gaps. If there is a low volume market on the weekends, brace yourself, as the chances of closing the gaps are high.
How to apply the strategy?
If you believe the gap is definitely going to close, you can then easily perform your trades because: First, you are aware of the price target, and second, the expiration time. With this data, only you can trade the high and low types of currencies and even the commodities.
#2 The Bollinger Bands
Put forward by John Bollinger; these are statistical charts that depict the volatility and the price of an asset over a period of time. This signals you a price channel that the financial market is improbable to set aside.
Bollinger bands are said to be high in prediction, especially on the weekends. There are three lines:
- Upper line: operates as a resistance level.
- Middle line: could be support or resistance level.
- Lower line: works are a support level.
- Bands for weekends
The Bollinger bands are extremely helpful during weekends, and using them properly will give you maximum benefits. The reason behind this is that with more traders and events happening in the financial industry, the movements will increase, leading to variations in the Bollinger bands.
But if the market has low volume, it will become stable, and the chances of any extensive action are less likely to happen. This makes the bands more precise and beneficial.
How to apply the strategy?
First, you have to open your trading platform and choose the desired asset. Then open the price chart and use the Bollinger Bands. Secondly, let the market reach the lines of the Bollinger band. And at last, make your forecast about the market turn around. You can use the basic trade option like high/low for predicting that the market will not violate the Bollinger band.
These are some of the standard approaches which can be used. However, you can formulate your own tactics also. There are many different ways to generate prospects on the weekends.
Conclusion: Trading on the weekend can be beneficial
The binary trading is easy and effective not only on the weekdays but on the weekends as well. With the right broker, you can trade in currencies, commodities, and many other financial derivatives. During the weekdays, when the major stock market timings overlap, you get more movements. However, many traders do not trade during the days off and take their leave. But this doesn’t mean that there is no action left.
On the weekends, you have a different trading environment with different opportunities. The number one rule is to find a binary options broker who offers you the services of weekend trading. Then apply your strategies and keep trading.