The best time to trade different binary options currencies
As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. As such, the US markets are used as the benchmark of checking the trading hours for stocks. US stock markets usually trade from 9. If you are trading stocks in the binary options market, pay attention to the times at which the stock markets in which they are listed are in operation.
The diagram below gives a perfect illustration of this. You also need to know that the local currencies of the active time zones will have increased volatility over others. Another way of studying the trading times would be to group the commodities under the exchanges where they are traded. As such, the agricultural commodities, which are traded in the Chicago Mercantile Exchange, are more actively traded from 9.
The reason behind such long hours is the fact that banks and businesses are operational at different times worldwide, supplying liquidity to currency pairs.
Each hour reveals different price behaviors in accordance with the specific marketplaces that are open. Major markets are open for trading at different times each day. Each open market directly influences the liquidity and level of volatility of specific currency pairs. As a general rule, liquidity increases whenever more than one market is open for trading. The pairs that will be most active at any given time will be those which are directly connected to the open market s. Additional examples include the Canadian market, which is open for trading while the New York market is open.
Similarly, the London market hours overlap with several other European markets. The German market opens for trading just one hour prior to London. However, volatility normally does not experience a noticeable boost until the London market opens.
Those significant trading sessions directly influence currency pair trade volume and price movement. Any spike in volume will indicate an ideal time to be trading , as the price at that time may offer higher highs or lower lows.
When opting for Range or Boundary trades, which require lower volatility, enter into trades when more markets are closed or there are no overlaps taking place. When you are starting out trading forex pairs , whether it be in the spot market or using binary options, there is a lot of basic information required. Many traders skip over this basic information, and instead seek out strategies immediately. Yet each hour of the day has different tendencies based on what part of the globe is open for business.
Want signals for Forex? We highlight the best service on the Signals page. Major markets are open at different times throughout the day. Which market s is open directly affects the liquidity and volatility and forex pairs.
Currencies generally see increased liquidity when one or more markets that actively trade, or use, that currency are open for business.