Best Times for Trading Binary Options
Some of you have already mastered the skill to follow what is happening on the stock markets at the right time, but for others it may be still unclear why it matters when you are trading. We want to make it clear and teach you the most important lesson in order to be a successful options trader – which are the best times for trading binary options.
Different assets have different trading times in the remote parts of the world. Depending on the time zone, you can expect that there are fixed trading times for every market and that not all markets are open at the same time. That is why every skilled trader knows when the biggest markets in the world have an overlapping activity. With simple words, if New York and London are awake at the same time, you can expect that the trading assets will have much greater price movements, than when only one of the markets is open.
It is about predicting the price
In binary options trading it is all about predicting the direction in which the price will change. Therefore you need volatility on the market in order for the price to move before the option expires. The feature of the assets to change their price dynamically when there is an overlap of different markets’ trading times is called volatility. If you are trading on the binary options market, you will want to know when there is price volatility of the asset that interests you.
What You Should Know?
The next thing you should know – your second step in becoming a real trader – is that different assets have different trading times even in the same time zone. You should track the active time of the asset you are interested in very carefully. If you are trading gold, for example, you should be aware that its trading time is from 8:20 AM to 5:15 PM EST. And there are different active trading times for commodities, stocks, currencies or indices. And these times are once again not the same in every time zone. So, your checklist for ensuring that you are in control of what’s most important in options trading, includes:
– choose an asset
– check when is its trading time
– compare the activity on the different markets
– wait until the most important time zones for your asset overlap
Now you have almost passed the way leading you to your own success as a skilled trader. If you make these steps and take these specifics of every asset into consideration, you have made all the right things to create a big opportunity for profit. Then you just have to take it.