What Is The Best Time To Trade Binary Options ?
This question can perhaps be attributed to those most frequently asked by beginners on the binary market. But still, what is the best time to trade binary options? It should be noted that the variety of systems used in binary trading allows you to use the entire operating time interval of the financial markets to make a profit with the help of this tool. Therefore, the selection of the optimal trading time depends on the format, rules, and effectiveness of the trading strategy that is being used by the market participant. On the basis of this metric, we will analyze the time parameters for binary options trading.
So, the markets function around the clock – at the end of one trading session, the next begins, and so it continues until the weekend. Thus, the time parameters for binary trading can be divided into day and night trading. At each time interval, there are various parameters at work in the financial markets: the number of assets, quote volatility, profitability of trading positions, and the number of fundamental indicators. Let’s examine this in detail.
During this time period, binary market traders conduct trading operations during the European and American trading sessions. These markets are the most active, use the largest amount of funds for trading, and use the whole range of underlying financial assets. For these reasons, day trading is characterized by high volatility of quotes and impulse format chart building. Against this backdrop, for day trading it is quite difficult to carry out effective market forecasting and obtain stable results with positive capital gain. However, if you choose an effective and universal trading system, it is possible to earn very well. The basic systems of working on the binary market should be considered indicator strategies that use technical signal filters, as well as systems based on technical analysis: trading on chart and candlestick patterns, as well as on the formation of geometric shapes. For an example of an indicator strategy, we can use a system with forecast efficiency of up to 87%, based on a combination of technical means of assessing market metrics: the Alligator, MACD, RSI:
This set of technical means allows you to evaluate the markets in complex impulse modes of quote building and leads to registration of contracts on signals with a high level of efficiency.
As a technical analysis strategy, we can give the example of trading on trend levels, which also allows you to register contracts with a high probability of profitability when day trading:
The benefits of day trading:
- Availability and choice of assets
- The quick pace of trading
- Good liquidity of binary contracts
- A wide range of trading strategies
The drawbacks of day trading:
- Difficult to predict market conditions
- A huge number of fundamental indicators affecting asset quotes
Undoubtedly, daytime trading of binary options is the most convenient method for the trader, and it is effective, provided the correct trading system is chosen.
Night-time binary options trading
When considering the night trading regime, many experienced market participants immediately speak to its disadvantages: the limited number of assets, the low volatility of the markets, and the absence of pronounced quote trend fluctuations. However, when correctly using these indicators, you can get more profit than on the active day markets – it all depends on, as we said, the performance of the trading strategies. Narrow ranges of price fluctuations and their predictability work in favor of the binary traders. Here you can best use strategies built on the principles of channel trading. As a means of analysis, it is recommended to use indicators to build dynamic channels or chart channel services. For example, the Bollinger Bands indicator:
or the “Channel” chart service on the Binomo broker’s terminal:
Using these approaches to creating trading signals on the night market, you can achieve profitable bets at up to 90%, and, as an overall result, you can increase your capital by 200% in this trading session. This calm and comfortable prediction mode is characterized by low trading risk and loss volumes.
The benefits of night trading:
- High market forecasting
- Trading effectiveness
- A good level of contract liquidity
- The minimum number of fundamental indicators moving asset quotes
- The physiological aspects of traders working at night
- The narrow list of available assets
Despite the obvious shortcomings of working on the binary market at night, you can earn very well trading binary options at this time.
Thus, when choosing the trading time, the trader must first take into account the parameters of the strategy – its effectiveness in certain conditions, its performance, and the universality of its trading signals.