How to Set Up a Binary Option Trading Time
Binary options are one of the financial instruments where we can buy contracts from an asset and will benefit when the contract expires. In binary options there are only two possibilities that are up or down. This means that we can choose whether prices will rise or fall when the contract period of the asset expires. The binary option difference with other trading is that the binary option profit is determined at the beginning of trading. For this reason, there is a time setting in binary options trading that aims to ensure trading success. Basically, the binary option trading time setting is not only focused on expire time settings, but also on the selection of trading time, time frame and also when trading is not right.
How to Set Up a Binary Option Trading Time
Look for the right trading time or choose a trading time
Binary options are online trading systems that allow you to trade with any financial instrument. But each instrument has a different level of liquidity and volatility. Each instrument has a different opening time. For example, the forex market is available 24 hours a day from Monday to Friday, while the stock market is only open during working hours. In binary options there are many choices of instruments that can be traded in one period. This is what makes you have to be smart in managing time. The following are some of the opening times of the binary option instrument:
Forex trading time
The forex market is a financial market with the highest liquidity because you can trade 24 hours a day. For this reason it is very important to determine the right pair so that it can take advantage of price fluctuations in each session. For example, you can trade with JPY, AUD, NZD pair in Asian session, while you can use pair with EUR or BGP currency in London session. USD in the New York session, this session is the most active than the other sessions because almost all traded pairs use USD as the benchmark currency. The most crowded trading time is the overlap between the New York and London sessions due to the many fundamental data from Europe and the US being released. At these times, price fluctuations can increase significantly. For traders with the right option position can harvest a lot of profit in a short time.
stock trading time and Stock Index
if you choose a stock instrument or stock index, you need to understand the stock market opening time. Usually, the most important things to observe are US and European working hours. This is due to the large number of stock instruments originating from these two areas in the choice of trading assets at the binary option brokers. The most effective trading time is when a new market is opened and when the market will close. The most active time where trading volume is at the highest level is in the first 90 minutes of the opening of the stock market. Even though price fluctuations can drop dramatically 3 hours after opening, due to the involvement of large players that are very influential due to the low trading volume.
Commodity trading time
You can take into account economic releases to analyze price movements in commodity markets. This is because if economic news is released commodity prices are also affected by the impact on certain currencies. As is known if commodity prices are closely related to currency values, especially those from the largest exporting and importing countries.
Looking for the right time frame
After you have chosen your trading time don’t forget to look for the right time frame. Time frame determination is one of the important things that can support your trading strategy. For example, the time frame is minutes to hours for short-term traders. As for long-term traders, there are daily to monthly time frames
In choosing a time frame, there is a rule called the Rule of Four. This means that the trader policy divides and multiplies the main time frame by number 4. Let’s say you choose the H1 chart as the main time frame that you normally observe to analyze price movements, the time frame can be the main chart to set expire time.
Avoid unfavorable trading times
Trading on binary options can be done by following the most active session of each selected instrument. In general, less liquid market movements on holidays or the end of the weekends can provide limited trading opportunities. So that in addition to considering the active time of the market on normal days, you should also reduce trading activities on pecan or holidays.