Binary options can be extremely profitable if used correctly, but they are also very risky. If you want to trade them, you should master market analysis and learn as much as you can about the asset you’re trading. Selecting a reliable broker is very important, too. However, choosing the right time to trade is arguably the most crucial aspect of binary options trading. In this article, we explain why that matters and tell you how to choose the right trading hours for binary options.
About binary options
Binary options are trading instruments that allow you to stake money on price movements of all kinds of underlying assets without actually purchasing them. Such an option can have just two outcomes: if your prediction is correct, you will receive a payout. If not, you will lose your stake. The payout amount is fixed, and your profits depend only on one thing: the actual price of the asset must be on the correct side of the strike price at the exact time of expiry.
Binary options are considered extremely risky, and only experienced traders should trade them. If you want to become a binary options trader, you’ll have to learn much more than just the basics: there are all kinds of tiny aspects affecting your effectiveness and profitability on the market overlooked by most novice traders. Choosing the best time to trade binary options is one of such aspects, so let’s dig a bit deeper into the topic.
Best time for trading
Generally speaking, the best time for trading is when most other traders are active. This way, you can enjoy the highest market volatility and liquidity, and that is crucial for binary options trading. The ideal time periods for trading seem to be different for each type of asset. For example, if you trade options based on British stocks, the ideal time for trading will be from 8:00 to 16:30 GMT since it’s when the London market is active.
According to professional binary options traders, the best time to trade is from 6:00 to 12:00 GMT and from 18:00 to 0:00 GMT. Your chances of making a profitable trade are slightly higher in these hours, so plan your day accordingly. It’s also very important to take a pause after a successful trade: winning large gives you a sort of emotional rush that can affect your ability to make rational decisions. So don’t be too greedy and choose only the best trades after weighing all the risks.
