How to trade Binary Options on the weekend

Binary options trading on weekends permits traders to trade seven days a week. There are plenty of options, with forex markets open 24 hours a day, seven days per week, and some markets and indices open on Saturday and Sunday. This article delves into the specifics of weekend trading and how to make money trading online on weekends.

Trading On the Weekend

While most of the market is still sleeping on Saturday morning, some traders are up very early to start weekend day trading. But, of course, many traders are simply sleeping and sipping their way through 2 days of potential riches in everything from the forex and futures to the stocks and cryptocurrency. So, in this section, we will look at the benefits and drawbacks of day trading on weekends and techniques, trading hours, and top suggestions.

Benefits

To begin with, why should you forego a peaceful day out on the weekend in favor of trading online? For any of the below reasons, perhaps:

  • Profit Possibilities – You have two additional trading days over the weekend. That’s an extra two days of earning potential. If you have had a particularly bad week, the weekend provides an opportunity to make amends.
  • Time — Trading on the weekend, for example, allows you to trade many currency pairings while still having enough time to assess each trade. Furthermore, you are not obligated to make hasty decisions, whereas you may be trying desperately to move in and out of the market at specific price points during the week.
  • Strategies — With the markets closed over the weekend, you have more time to build more complex trading strategies. Furthermore, some trading strategies will perform better on weekends. On Saturdays and Sundays, for example, Asian markets frequently behave differently from Western markets. As a consequence, certain techniques may be more profitable on weekends than throughout the week.
  • Undivided Attention – Many people work during the week, which is understandable. As a result, finding the time to focus on trading can be difficult. This is because weekend trading allows you to concentrate exclusively on your trading activity. Furthermore, fewer distractions may lead to better trade selections.
  • Planning – Weekend trading might entail a lot more than merely entering and exiting trades. You can do in-depth technical research while the majority of the markets are taking a breath. As a result, by the time the starting bell rings on Monday morning, you may have fine-tuned your approach and be better prepared.

Drawbacks

Despite the numerous advantages, there are also disadvantages to day trading on weekends:

  • Limited Trading Options — On weekends, there are more miniature instruments accessible for trading. Many stocks will be unavailable, in particular. On the other hand, currency weekend trading is simple because the markets are open 24 hours a day, seven days a week.
  • Weekend Prejudice – It’s also possible to continue your weekend bias into Monday. You might, for example, have changed your trading strategy or be frantic to make up for the loss. If you’re not careful, this might lead to a loss on Monday.
  • Low Trading Volume – Even though forex, oil, and gold trading are still available on weekends, the low trading volume might cause issues, such as a diminished capacity to validate price swings. A shortage of volume can sometimes result in flat markets and useless charts.
  • Limited Brokers – Most brokers do not provide weekend trading. They believe there isn’t enough volume or interest to justify their efforts. So, if you’re tied to a certain broker, you could be unable to trade till you switch. Weekend day trading is available at 24option, IQ Option, FXCM, and Nadex.
  • Trading Hours -The weekend day trading may be inconvenient for you. Markets in the Middle East, for example, are frequently lively on weekends. This means that if you live in the West, you may have to be willing to deal during odd hours.
  • Liquidity — Markets are frequently less liquid when there are no money managers to handle the opposing side of trades. As a result of the reduced liquidity, volatility may rise.

As a result, the disparity between the bid and ask has widened. This can make profit generation even more difficult. High levels of volatility, on the other hand, can signify increased profit possibilities.

Why Do You Trade on Weekends?

Stocks And Indices Trading

Many of the typical instruments and markets that you trade during the week will be unavailable on weekends. For instance, from Friday 16:00 to Monday 09:30, the NASDAQ and the other US stock exchanges are closed. On the other hand, weekdays in the Middle East go from Saturday to Wednesday and Sunday to Thursday.

Furthermore, brokers and services in the CFD and currency markets now provide seven-day trading weeks and a variety of local stocks and indexes. The following are some of the indices that will have the most volume during day trading on weekends:

  • The Saudi Arabian index, known as the Tadawul Index, reflects the region’s largest economy. As a result, among brokers who allow weekend trading, it is the most popular index.
  • The Tel Aviv 25 (also known as the TA25) is Israel’s top 25 enterprises. Those with an interest in the pharmaceutical and IT industries may be a good fit.
  • DFM Index – This index contains some of the most critical players in the UAE (United Arab Emirates).
  • Kuwait Stock Exchange – Kuwait has a diverse economy. As a result, companies from the banking, insurance, and real estate industries trade on this stock exchange.

Foreign businesspeople now have greater access than ever before, thanks to Saudi Arabia’s decision to synchronize its workweek with its neighbors. As a result, liquidity will improve as they move closer to full access, and weekend traders will profit from increased profit potential.

Brokers, on the other hand, have taken notice of the increase in weekend traders. Some companies are now offering trading on formerly closed markets. For example, IG now provides weekend access to the DAX and FTSE indices and the Wall Street. Stop-loss restrictions, for example, have changed slightly (the weekday trades are not affected by anything that occurs over the weekend, for instance).

The move exemplifies the growing amount of commerce done on weekends, fueled in part by Cryptocurrencies like Bitcoin and Ripple, which are not bound by market hours. Weekend trading opportunities are only going to develop as trader operation and trading volume rise.

Binary Options & Cryptocurrencies

Weekend cryptocurrency and options trading is also on the increase. Bitcoin and Litecoin are only two of the many popular digital currencies for which binary options are available. In addition, they may be efficiently exchanged 24 hours a day, seven days a week, because they are primarily an Internet creation.

The major currencies garner the bulk of the attention during the week. However, by late Friday, the amount of bitcoin options trading has increased significantly.

Furthermore, some binary options brokers offer weekend trading that begins at the close of US trade on Friday and continues until Europe opens on Monday morning. Weekend events, such as Chinese economic data releases and G-7 meetings, have been carefully integrated into these alternatives.

Weekend Planning

The first point to make is that weekends do have an impact on trading techniques. The absence of major market participants has resulted in unique weekend dynamics. As a result, volatility may increase as volume decreases. Fortunately, some tactics have been designed expressly for trading on weekends. 

Trading The Weekend Gap

Price jumps are what are known as gaps. Something drives the price to move up or down, skipping over the levels in between. Gaps are typically caused by the start of new movements or the acceleration of existing movements.

However, to close these gaps, a large amount of trade activity is required. However, you don’t generally see these gaps on weekends because key market participants aren’t trading. Weekend trading, on the other hand, concentrates on closing gaps.

When only a few traders generate gaps, they can narrow. For example, whether by chance or not, numerous people might invest in the same direction. The market will increase or fall as a result.

The majority of traders will then be perplexed as to what is going on. They frequently conclude that the price has risen or fallen too far. As a result, they attempt to profit from the apparent error by trading in a reverse way.

Traders will sell their securities if there is an upside gap. After that, the market will decrease, and the gap should narrow.

Downwards gap – Traders will buy in the downwards gap, the market will rise, and the gap will close again.

In the low-volume markets, like weekends, gaps frequently close. As a result, weekend gap trading is an excellent technique.

Implementation Of the Strategy

You may now profit from market conditions because you know the gap will close. This is because you are also aware of several important facts. To begin, you must determine your price objective since the market will rise until the price reaches the level of the first candlestick that fills the gap. It is going to sink to the top of the first candlestick if the gap is upwards.

You also know when it’s going to expire. This is because you are confident that the market will reach the target figure within the next period. As a result, you can choose between high and low. A one-touch option, on the other hand, may help you enhance your profits even more.

Also, make sure you choose an option with the price objective within the gap and a shorter expiry than one period.

This is commonly referred to as a weekend gap trading method in forex. But, in reality, this strategy may be used for both options and commodities.

Finally, weekend gap trading with qualified advisors may allow you to improve your profits. These algorithms will enable you to perform significantly more trades than you could manually by following pre-determined criteria.

What Other Ways Can You Make Weekends Work for You?

If you have had a tough trading week and want to take a vacation from actually initiating and leaving positions, the weekends provide various useful activities. The following are some of the finest ways to spend your time: The following are some of the finest ways to spend your time:

  • Back-Testing — You can simulate prior market situations utilizing historical price data to test a proposed strategy. This is an excellent approach to detect and address any issues before implementing your strategy on Monday morning.
  • Performance Analysis – Finding time to reflect amid a hectic trading week is complicated. As a result, weekends are ideal for sitting down and reviewing your trading journal and recent results. What went wrong for you this week? What adjustments should you make to your current strategy? Did your emotions play a role in your decision-making?
  • Risk Adjustments – You can determine whether or not modifying the risk parameters is a good idea by doing a performance analysis. If your technique delivers more consistent profits, for instance, you may increase the position size and risk tolerance.
  • Future Planning – Weekend trading might also include making plans for the week ahead. Is there anything on the economic calendar that could affect stock trading, for example? If this is the case, make a plan to profit from the price changes that will result. 

Weekend day trading might also include educating oneself through educational resources. Courses, books, ebooks, webinars, podcasts, and various informative websites are now available. All of these resources can help you learn about a new approach or improve your industry knowledge.

Trading Tips for The Weekend

Several essential recommendations can help you avoid problems and potentially improve profits whether you’re interested in currency, stocks, or futures weekend trading. These are some of them: These are some of them:

Examine The Spreads

Selecting a reputable broker is even more critical because spreads often broaden due to decreasing trading volume and liquidity. Due to reduced liquidity, spreads can be especially wide during the closing and opening of the trading on weekends. So, on weekends, look for brokers who offer competitive spreads.

Dealing With Slippage

Slippage might occur due to a lack of liquidity and the risk of gaps during weekend trade. Utilize maximum deviation or market range options offered on certain systems, such as MetaTrader, to mitigate this issue.

These options allow you to set a maximum amount of potential slippage, which you are willing to accept. For instance, you won’t have to deal with any slipping if you set it to zero.

Make Use of The News

Day trading on the weekends results in unusual trading behavior. News announcements will drive a lot of the activity and volatility. As a result, keep up with any significant news happenings in your market. CNBC, Yahoo Finance, Financial Juice are all good sources of information.

Conclusion

There are still many chances for people wishing to start day trading on weekends, even though they are generally disregarded. From Friday evening to Monday morning, both forex and binary options are available. Furthermore, markets in the Middle East provide the necessary volatility and volume to create profits.

You will, however, need to adjust your regular strategy or create a weekend-specific strategy. If you don’t want to trade, you can utilize the weekends to advance the trade education and plan for the coming week. Again, there are classes available, as well as all of the resources mentioned above.

About the author

I am an experienced Binary Options trader for more than 10 years. Mainly, I trade 60 second-trades at a very high hit rate.

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