Binary option trading as we know is nothing but trading underlying assets and earning profits by predicting the direction of the movement of the price that is tagged with the asset. While mostly these assets are traded round the clock, few may not be traded 24 hours a day.
The assets that are traded round the clock include commodities, indices, and currencies. However, you will find that stocks cannot be traded round the clock. In case of stock trading, you will have to find when a particular asset is traded on a given stock exchange. And as far as binary option trading is concerned, the best time to trade is when the market is active and “bullish”. And this activity has to be from across the globe from hundreds of traders. In other words, only when the market is active, should you invest in binary option trading. In order to get better returns, you can seek assistance of binary brokers. For more information about the best binary option trading brokers, you can visit binary-options-brokers.com.
Why is it the Best Time to Trade when the Market is Active?
One of the main reasons why you should enter into a trade when the market is active is due to the fact that under such circumstances, a lot of liquidity is generated from the market. Not only that the market is also volatile so the direction of the price of the underlying asset can be predicted in a more accurate manner.
If you are planning to trade commodities and currencies, usually a trading platform or a broker will state that they are traded round the clock. But only certain time slots during the entire day are actually good for trading commodities and currencies. This is mainly due to the differing time zones and trading times.
Best Time to Trade Commodities
You will find that the following commodities will be traded at the respective time slots.
As far as gold is concerned, the best time to trade this asset is between 8.20am EST and 5.15pm EST. Crude oil is best traded between 9am EST and 2.30pm EST. Corn is traded between 9.30am EST and 1.15pm EST. Silver is traded between 8.25am EST and 5.15pm EST.
If you are interested in investing in stocks, you will be able to do so only for a period of 6 hours to 8 hours every day. Generally, it is seen that the US stock markets are used as standard or benchmark with the help of which you will be identify the best trading time.
If you want to trade currencies, rely on the forex market. It is one of the most active markets around. The most profitable time zones in this market are when there is overlapping of the time zones, namely, London/New York and London/Asia.
The best time to trade binary options depends largely on the prevailing condition of the market at the time when you are planning to enter the trade. Binary brokers will be able to guide you best in this regard. But your instinct may not favor you always.