Best Time to Trade

Best time to trade


One of the most important aspects when trading binary options is to know when to trade the market. Even though trading on foreign exchange options, stock options, commodity options and index options is available 24 -hours a Day, five days a week, not every hour or minute is worth trading. 

There are different hours during the day and different days of the week which see more volume and liquidity than others, resulting in high volatility and opportunities to maximize trading.

Efects of timing

As a binary options trader, you proft when you correctly predict the direction of an asset price.
Volatility is therefore essential to maximize the chances of you increasing your return on investment.
Studies have shown that the most active trading hours occur during the European session. In the US, trading activity picks up sharply around 8:30 am EST. this is due to the release of closely watched US economic data, which generates the liquidity and volatility needed for the underlying asset to reach its target  price before the option expires. Prices become most volatile when the US releases its monthly non-farm payrolls report on the frst Friday of every month. In contrast, markets will be less active and liquid during 

major holidays in the US and Europe, resulting in subdued trade. Best days of the week
There are days that see more volatility and price action than others. According to The research, Tuesday and Wednesday are considered to be the most active
trading days of the week. Friday is also recognized as a high-volatility  trading day, especially during the hours when European and US trading sessions overlap. During the second half of the day, price movements can be very unpredictable.

Most forex traders are more successful during the late US, Asian or early European trading sessions – essentially 2 PM to 6 AM Eastern Time (New York), which is 7 PM to 11 AM UK time





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