Weekend trading in binary options allows you to participate in financial markets outside the traditional weekday trading hours. Learn about the nuances of weekend trading, including crucial facts you need to know, markets you can trade, top brokers you can consider, pros and cons, trading strategies, and key risks in this endeavor.
Key Facts You Need to Remember
- Value Proposition — Binary Options weekend trading allows you to trade beyond the regular market trading hours and days.
- Limitations — You can trade fewer markets and assets than on regular trading days.
- Volatility — Relatively speaking, you can experience more significant or “wilder” price swings than regular trading days.
- Trading Approach — Generally, due to differences in market dynamics, you may need to adopt a distinct trading strategy for weekend trading.
- Regulatory Considerations — You also need to check if your specific country or region has restrictions over weekend trading that may prevent you from participating in certain markets and assets or limit the time and day you can trade.
Binary Options Markets You Can Trade During The Weekend
1. Cryptocurrency Market
Generally, you can trade 24/7 (including weekends) in the crypto market. Hence, many binary options brokers allow you to trade popular cryptocurrencies such as Bitcoin ($BTC) and Ethereum ($ETH) as underlying assets.
2. OTC (Over-The-Counter) Markets
For those unfamiliar, OTC markets differ from traditional exchanges since they trade against the broker using their own system and operate as a decentralized market without the oversight of central exchanges.
Trading hours and the underlying assets for binary options on OTC markets can vary depending on each broker’s policies.
3. Foreign Exchange Markets
Technically speaking, forex markets are closed on weekends. However, certain binary options brokers offer weekend trading on select currency pairs.
4. Middle Eastern Markets
Due to religious practices, some Middle Eastern countries, such as the United Arab Emirates (UAE), Saudi Arabia, and Kuwait markets, are open Sunday through Thursday (Friday being considered their holy day), making it possible to trade binary options on Sunday on these markets.
5. Special Markets During “Notable Events”
Certain binary options brokers may also offer special weekend trading based on noteworthy events, including bets on political events, economic data releases in various time zones, or even company disclosures that might emerge over the weekend.
Where Can You Trade During Weekends?
Pocket Option
First, well-known among the binary options community for its user-friendly interface and extensive range of markets and assets available for trading. The broker supports OTC trading on select forex pairs, commodities, crypto, stocks, and indices.
Weekend Specifications:
1. Weekend Trading Session: Friday (21:00 UTC) – Sunday (21:00 UTC)
2. Assets Available: Major currencies, commodities, stocks, indices, and cryptocurrencies through Pocket Option’s OTC Markets
For the complete list of assets during the weekends and their specific yields, you can check the following:
Saturday List: https://pocketoption.com/en/assets-otc/?day=6
Sunday List: https://pocketoption.com/en/assets-otc/?day=0
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
Quotex
Second, another notable platform in the binary options community, Quotex, is well-known for its beginner-friendly platform and advanced trading tools that are particularly useful for experienced and advanced traders.
Weekend Specifications:
a. Weekend Trading Session: Friday (21:00 UTC) – Sunday (21:00 UTC)
b. Assets Available: Similar to Pocket Option, it also supports major currencies, commodities, stocks, indices, and cryptocurrencies through Quotex OTC Markets
For a thorough list of supported assets on weekends and their specific yields, you can check their website at https://qxbroker.com.
Quotex also hosts weekend trading competitions dubbed the “Weekend Battle,” with a prize pool of $3,000. You can learn more about the competition at https://qxbroker.com/en/tournaments/
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
Pros and Cons of Weekend Trading
| Pros | Cons |
| 1. Extended Trading Hours Weekend trading provides flexibility to trade regardless of the day of the week. This is especially helpful for those unable to trade during standard market hours or are part-time traders. | 1. Increased susceptibility to market noise. Without reliable market news and updates, weekend trading can be more susceptible to speculative trading based on what “might” transpire next week. |
| 2. Opportunity to Trade on Global Events Weekend trading allows traders to capitalize on specific events, news, and disclosures that transpire over the weekend. | 2. Risk of Overtrading There is a real risk of overtrading, particularly for beginners and undisciplined traders. Weekend trading can lead to making poorly planned and impulsive trades simply due to the extra time available. |
| 3. Time Zones Advantage Weekend trading can be practical for traders in different time zones, as it allows them to trade at hours (and days) more accessible, particularly for those in a time zone where standard trading hours of specific financial markets are inconvenient or simply not viable. | 3. Lower Liquidity In general, there is lower liquidity during weekends. This can lead to wider spreads and larger price gaps and swings, which are especially disadvantageous on certain option types that are more optimal in less volatile environments (such as “One Touch” binary options). |
| 4. Niche Market Opportunities Weekend trading might offer niche opportunities that are less common in markets or assets during regular trading days and hours. | 4. Limited Asset Availability Only certain assets from select financial markets are available on weekend trading, limiting the options on which you can trade. |
| 5. A Hedging Tool Weekend trading can allow more experienced and advanced traders to hedge against their established positions during the week. For example, binary options can counteract one-way exposure to potential market “gaps” or unexpected events that could arise over the weekend. Nevertheless, this is a more technical and sophisticated use case. | 5. Skewed Risk Perception In behavioral economics, when market participants (traders) face potentially less market activity, they tend to develop a “skewed” perception of risk, either underestimating or overestimating it based on “atypical” market behavior versus regular trading days. |
Distinct Strategies for Binary Options Weekend Trading
Strategy #1: Events-Driven Trading
Definition: A strategy focusing on specific asset price movements caused by notable macro and micro events (e.g., news, announcements, and data releases).
Advantages:
- You can capitalize on reactions (and overreactions) to events occurring over the weekend.
- Potential for quick payoff if the market moves as you expected.
Disadvantages:
- This strategy demands up-to-date information, access to sophisticated market tools to help pick up events, and swift decision-making.
- Market reactions can still be highly unpredictable and “random,” leading to huge losses if risk is not managed accordingly.
Who is it For: Most appropriate for experienced traders who are well-informed about their target assets’ weekend events and can make instantaneous decisions based on new developments.
Strategy #2: Contrarian Strategies (such as Fade the Friday Close)
Definition: Generally, contrarian trading strategies involve an opposing position to the general market sentiment. The main idea is that markets tend to “overreact” to specific news or events, leading to mispriced assets (either viewed as “too cheap” or “too expensive”).
By going against the “flow” (e.g., popular opinion or market trends), contrarian traders can capitalize on these “inefficiencies” in the hope that markets will eventually correct their course. A noteworthy strategy under contrarian is called “Fade the Friday Close.” Simply put, it involves trading against the market move that transpires at the close of regular trading on Friday.
Advantages:
- Contrarian strategies can generate massive returns if correctly timed
- You can employ contrarian strategies in whichever the market is heading, either advancing or declining.
Disadvantages:
- Going against the trend can be extremely risky for inexperienced traders
- It involves accurately predicting when the market will “top” in an uptrend scenario or “bottom” in a downtrend scenario, often described as like “catching a falling knife.”
Who is it For: Most ideal for experienced traders with an in-depth understanding of “market psychology” and highly skilled at identifying overreactions in chart patterns.
Strategy #3: Hedging Against Weekday Positions
Definition: As we have covered in one of the pros in the earlier section, weekend hedging is an advanced strategy that involves taking positions against your established positions during regular trading days.
Advantages:
- This can reduce the exposure risk of your weekday positions
- It enables “balancing” of your asset portfolio over the weekend
Disadvantages:
- It requires a working knowledge of asset allocation and market correlation.
- Highly technical in nature and not suitable for most traders, especially those with limited capital to deploy
Who is it For: Best suited for advanced traders who hold weekday positions on multiple markets and assets and are looking to “cushion” their portfolio against sudden adverse movements over the weekend.
Key Risks of Binary Options Weekend Trading
1. Liquidity Risk – A generally lower weekend trading volume can lead to less liquidity. This can manifest in bigger price spreads and “wilder” price swings.
2. Overnight Market Risk – Holding positions overnight on weekends can expose traders to unexpected market movements compared to regular trading hours.
3. Market Manipulation Risk – Because of lower volumes, weekend markets can be more prone to price manipulation by major market participants, commonly called “whales.”
4. Overtrading Risk – The allure of weekend trading can also lead to overtrading, particularly among inexperienced and undisciplined traders.
5. Regulatory Risk – Since many available markets and assets operate under “OTC Markets” of brokers during weekends, this amplifies the risk of a specific regulation that can hinder a particular asset, market, or the broker itself.
Conclusion
With all these considered, we can see that binary options weekend trading provides a unique value proposition for specific demographics, such as those who are unable to trade during the weekdays.
Nevertheless, it is essential to be mindful of the distinct nature, pros and cons, and risks of weekend trading to assess if this fits your specific use cases fully.
Most Asked Questions:
Is weekend binary options trading riskier than weekday trading?
Generally speaking, it is riskier due to lower liquidity and higher volatility, which can cause market gaps and massive price swings.
Can I use the exact strategies I use for weekday trading?
While some regular trading strategies are immediately applicable, weekend trading often demands key adaptations due to distinct market conditions. Additionally, you must ensure that your “edge” during regular trading days can be carried over to weekend trading.
How can I begin trading binary options on the weekend?
Start by choosing an established binary options broker that offers weekend trading, such as Pocket Option or Quotex. Afterward, thoroughly test your trading plan and strategy on a demo account to understand the unique market dynamics in weekend trading.
What assets are most commonly traded in binary options during the weekend?
The most common assets are cryptocurrencies and OTC (Over-the-Counter) financial instruments, mainly due to their inherent availability beyond “traditional” market days and hours.
Can I use automated trading bots for binary options weekend trading?
Yes, but just like in any other market timeframe, remember that it’s vital to ensure they are correctly backtested and programmed to operate under the distinct market dynamics of weekend trading.
