Binary
option trading begins by Rich Mom determining the underlying assets and making
money based on the outcome of price directions. Binary trading on
currencies, commodities and stock indices assets can be on a 24-hour
basis. It is possible to trade on individual stocks, but most stocks
are traded in specific time periods. The trading hours of a stock
market is the determining factor when individual stocks are listed.
Consider the time zones of the trading capitals to determine
different trading times.
Trading
in binaries works best when the market is active with traders from
all over the world. If there is good trader activity in the market,
liquidity is generated and the volatility needed for underlying
assets to move in enhanced. Even though binaries are a 24-hour
market, there are only specific times of the day when market activity
is at its peak. The best time to trade is when there is an
overlapping of trading zones around the world.· Stocks are traded at
the upmost six to eight hours a day. Stocks in other countries may be
dealt on the US stock market as American Depository Receipts. US
stock markets are used a benchmark for trading hours. Trades
generally begin at 9:30 am EST and last until 4:00 pm EST.
The
FTSE in Europe trades from 7:00 am GMT to 3:00 GMT. The Xetra Dax
(Germany) trading period is best from 8:00 am GMT to 4:30 pm GMT. If
you are using stocks as your underlying asset in the binary options
market, do make note of the times stock markets are open. They
operate at different times.· The forex market is a great underlying
asset to trade with. The forex market is active when there is an
overlap of the London/Asian and London/New York time zones. Study
time charts to know when these overlaps occur. Be aware of local
currencies and what currencies are highly volatile. Watch, for
example, the Australian dollar that will be more active during
Asian/London time zone overlap.
Crude
oil is most active from 9:00 am EST to 2:30 pm EST; natural gas is
active from 9:30 am EST to 5:15 EST. Corn is active from 9:30 am EST
to 1:15 pm EST. Trading in precious metals including gold is from
8:20 am EST to 5:15 pm EST. Silver trades best from 8:25 am EST to
5:15 pm EST. You predict the best times and trades by studying the
commodity areas they are most traded. Agricultural commodities are
best when the Chicago Mercantile Exchange is followed. You can find
information of specific trading hours on the stock, forex and
commodity websites.· If you want to predict the rise and fall of
stock indices, most indices will follow the US markets that are
active from 9:30 am EST to 4:00 pm EST. If you are interested in
Xetra Dax's trading times (Germany) find out their opening and
closing times. This is the same with any indices in any country.
