Versatility may not be the first quality that comes to mind, when Binary Options is brought up for discussion. After all, there are just two ways a trade can go: and it is not like there are many tools or ways of trading that can be used to create diverse trading systems, as is the case in Forex Trading.
However, in Binary Options, you can trade any of a large repertoire of assets. Anything from stocks, to currencies, to commodities: and the list keeps growing with numerous additions by enterprising brokers. Although, the variety of assets offered differs across brokers, there are usually a decent number of assets to trade with a top-grade Binary Options Broker.
Understanding the different Binary Options Trading Market Hours & Schedules
With a vast array of assets to trade, would not it be perfect to be able to place a trade at all times? In a way, you can in Binary Options Trading: but technically, you would not be able to trade all assets at all times.
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Here is the deal, stock exchanges trade as specific times of the day, so stockbrokers and other people who work in the industry can go home to their family and live normal lives. And then, there’s the Forex currency market that is closed during the weekends and half the day on Friday, for basically the same reason why the stock exchanges shut their doors after certain hours had gone by.
These are the two major markets, but that’s not all. Even, Forex still maintains core trading hours in four major trading centers, where much of the money on Forex is traded, resulting in high volatility and profitability (if high trading activity is your thing).
Why Binary Options Trading Market Hours & Schedules matter?
Aside the obvious, “Hello, you can only take a Binary Option position on a NYSE stock pick only during NYSE trading hours, and likewise for other assets that are available at only specific trading hours,” the different market hours and schedules influence the kind of Binary Options trading strategy you use.
While one strategy may require you to take up high volatility assets and trade during busy trading hours, another may require you to do the exact opposite.
You would also be able to manage different assets across the board, if you wish, and maintain profitability. Diversification reasons and/or increasing one’s portfolio are two top reasons why a trader might go this route. Either way, Binary Options offers the versatility to do so.
Also, you may not be available all day to make trades, and seeing that regions have different time zones, it would make sense to note the market hours and schedules of options assets you are interested in trading.
What are the Binary Options Trading Market Hours & Schedules
The two major Binary Options asset categories by market are the Stock Markets and Foreign Exchange Currency Market. We will discuss the trading market hours for both categories separately:
Assets in US stock markets are amongst the most traded in this asset category. In general, stock markets in the US are open between the hours of 09:30 (9: 30 AM) and 16:00 (4:00 PM) Eastern Standard Time (EST).
However, if your trading strategy is dependent on the volatility of the market, it may interest you to know that activity usually fall to low levels between the hours of 12:00 (12:00 PM) and 13:00 (1:00 PM) EST—which corresponds to lunch time for traders. For the highest trading activity, endeavor to take up positions during the early trading hours before lunch (in the morning).
Aside, US stock indices, Binary Options traders, in their numbers, also trade assets in Europe. Popular stock market choices are the FTSE AND Xetra Dax. Market hours for these markets hover around 07:00 (7:00 AM) or 08:00 (8:00 AM) to 15:30 (3:30 PM) or 16:30 (4:30 PM) on weekdays.
Foreign Exchange Currency Market
Although there are several currency and commodities market, Forex is the most active, and it makes a name for itself by being available for 4 days (24-hour days) and half straight without breaks in between.
While the Forex market is generally not limited physical trading exchanges, there are four major financial centers where a lot of market activity happens. These centers only have their door open for a set number of hours per day, much like stock market exchanges. They include, London, New York, Sydney, and Tokyo.
The trading times of some of these centers overlap at certain periods. An example is the London/Tokyo overlap. The London and New York trading times also overlap, and is pretty much a big deal, with lots of swings occurring during the overlap.
In all, times may be shorter for a specific broker, so you should consult your Binary Options broker to confirm trading times for chosen assets.