In Binary Options trading, traders are able to take positions on assets spread across different asset classes. These asset classes, and sometimes individual assets within a class, have different trading times or sessions. That is, not all assets are available for trading round the clock (24/7/365).
Accordingly, if you are not available during the trading session, probably due to your schedule and/or time zone, you will miss price changes that may have been profitable for you. This primarily underscores the need to understand why trading times matter in Binary Options.
Volatility and Trading Times in Binary Options
An asset has its respective trading session. Still, within a specific trading session, there would be periods of high activity and resultant quick price swings (volatility), and periods of low volatility.
For example, the market hours of NASDAQ asset class are between 9:30 AM and 4:00 PM EST. However, the period of most activity (volatility) is between 9:30 AM (start of trading) and 12:00 PM (beginning of lunch break).
This concept is replicated across all asset classes and sometimes individual assets, howbeit at differing times.
Because of the nature of Binary Options, most traders rely on periods of high volatility to make high profits. For traders who rely on this strategy, it is very important to note the trading times as well as the periods of high volatility.
Best Time to trade Binary Options
The best time to trade in Binary Options ultimately depends on the asset you are trading and your trading strategy. With that said, the best time to trade Binary Options is subjective, although most of the decision-making would require a trader to be analytical. An answer every trader must individually work out based on trading style and preference.
Why the best time to trade matters
There are four major asset classes in Binary Options: stocks, currency pairs, commodities, and energy. By choosing the best time to trade, a trader will find it easier to trade multiple assets and allot requisite time to making the most out of each asset.
Pairing this approach with solid money and risk management strategies is a sure recipe to making decent profits consistently.