The availability of binary options is typically limited to the operating hours of the major global markets. Even so, with time zone differences come plenty of hours for trading with international stocks, indices, commodities, and currency pairs. Within the hours that your chosen platform is open there exists general time-frames which offer better profit opportunities. Knowing what these are will allow you to hone in on the best trade setups.
The best and worst times for trading are directly linked to trade volume. When volume is high, asset prices are on the move and likely to present plenty of options for trading. With decrease volume, prices are often range-bound, locked into the push and pull of a smaller number of investors. The good news is that there are various trade types to choose from, with each being better suited for a specific level of trade volume.
Currencies and commodities are typically available for trading for a longer time each day than stocks. When trading with stocks, you’ll need to consider the specific market that each is traded within. After hours trading does take place in some markets, but binary options traders will not be able to participate. The most active times for any index are going to be the hour after the market opens for the current session and the hour just prior to market closing.
Market hour overlaps do occur each day and these present their own unique types of opportunities. The London and Asia market overlap, as well as the London and New York overlap are the highlights, although other overlaps do occur. Expect to see an increase in global trade volume when these markets are open for trading at the same time. These hours can be especially profitable for those who trade with currency pairs and indices.
There are more favorable trading periods for commodities as well. These times are going to vary, yet they are easy to identify by simply monitoring current market news. For example, when the most recent data related to crude oil supplies is released, there will be more action within the marketplace. This is when price trends can begin, creating easy profit opportunities for all who are in a position to trade at that time.