As opposed to conventional day trading in which you need good marketplace unpredictability to generate decent gains, binary options don’t require a great deal of activity to generate out-sized gains. So when is actually the ideal time to trade binary options …all the time! Okay, so maybe that’s a little exaggerated however there are specific points during the day that are ideal to trade binary options, so let’s review two particular time frames.
Trading Binary Options On The Market Open
This is a little challenging. Traders either firmly love or ardently detest trading on market open. Stocks move about with so much unpredictability that at times it feels like a crap shoot in choosing an appropriate direction. Binary options brokers understand the feeling as well so many don’t permit you to trade binary options until a specific time has passed. These market open time frames vary anywhere between Five minutes all the way up to 30 minutes. For those individuals who like to see massive moves in binary option prices you might wish to trade binary options as near to the open as you possibly can. One benefit of trading close to the open are these substantial moves which can place your trade solidly in the money within minutes of placing the trade. On the other hand, the binary trade can move against you immediately, placing your trade strongly out of the money. Nonetheless, always keep in mind when you trade binary options you always have the capability (at least until the lock out period begins) of hedging your trade. So if the trade moves against you immediately you can begin to put into action a hedging strategy that can, in some situations, totally negate the effects of the unwanted move. Just something to consider as you start to trade binary options.
Trading Binary Options On The Market Close
Whilst binary platforms may vary on what time they’ll let you start to trade binary options on a day-to-day basis, they all allow you to trade options into the close of the market. Throughout the final hour of trading you will sometimes see various stock movement patterns emerge that enable smart binary options traders the cabability to place high reward / low risk trades on before expiration. We’ve known traders that concentrate exclusively on these market close opportunities and have made a killing doing it. This does take a great deal of patience though as some wait around all day and end up not placing any trades, which can be an annoying thing.
Whilst these setups do not happen every day, it is advisable to learn them as you start to trade binary options