Volatility best days and hours to trade binary options
While subject to change, the charts provide a good overall context for relative intra-day volatility. Those seeking reduced volatility, or times more likely to quietly range, trade between 20 and 5 GMT. Currently updated volatility charts and other forex statistics are available at Daily Forex Stats. Learning the basics, such as what the market sessions and hours mean to you as a trader, can significantly help in determining what strategies to exercise and when.
No matter what time frame you trade on, you should have a checklist which helps you determine what type of market environment you are trading in. This will also help with filtering trades and capitalizing on good opportunities. Forex Market Sessions Major markets are open at different times throughout the day. Here are the forex sessions based on different time zones: 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.
Typically, the hours between GMT supply the greatest trend trading opportunities, with the hours between GMT usually supplying the largest movements. Traders searching for decreased volatility for the aforementioned Range or Boundary trades are most likely to find it between the hours of GMT. 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.
Once you master the trading hours for each asset, you are one step away from potential profitability in the market.