August 26, 2015 at 1:53 pm
The Forex market is know to be a 24/7 market, mainly because their is no official exchange. Binary options trading itself is available to trade 24 hours a day, 5 days a week. Sydney market open to New York market close. I is worth mentioning that most broker platforms do offer weekend trading with crazy returns, trying to make it more appealing. These options are not very popular nor advisable. Unless you have an extensive market insight; weekend trading should not concern you. Without a doubt currencies are by far the most traded assets. Market volatility and higher In-The-Money payouts contribute to Forex options being traded more often than Stocks, Commodities and Indices. The $4 trillion/day market does not disappoint. With that being said, when is the best time to take advantage of Forex binary options?
Since binary options only require a trade to be 1/10th of pip in our favor to result in a profitable outcome, we can technically take advantage of any market condition. Although it does make more sense to favor trending conditions, that might not have to be the case here. This might surprise most traders but in theory, markets only trend about 30% of the time, while consolidating or ranging the remainder of time.
GMT Forex Market Hours
EST Forex Market Hours
Reference – http://www.forexmarkethours.com
From the images above we can see the Forex market hours in GMT and EST. It also indicates which market opens at what time. Common sense tells us that the GBP/USD will be more active during the London and New York markers. The AUD/JPY will be more active during the Sydney and Tokyo markets. You get the idea…
It is important to note that there there are hours when two sessions overlap each other:
During these market overlap times we can expect an increase in market activity as well as volatility. So as you can see each currency pair has a specific time of day we can capitalize on. One of the advantages of the Forex market, is no matter where in the world you are situated, there will always be an opportunity to trade in optimal conditions. No excuses – take advantage of the 24 hour market!
August 26, 2015 at 8:40 pm
Great informational article! I do have 2 questions for you if you don’t mind answering them.
1. What is your personal favorite market open to trade?
2. Which FOREX pairs do you trade based on question 1?
I see people sometimes have a misconception based on question 2. Looking forward to your response :)) Think this might assist me in my market of choice.
Happy Trading folks!
August 26, 2015 at 8:54 pm
You published this post just before I planned to sign off for the day lol. Good timing…
So here is my Answers based on your 2 Questions.
1. That is a tough one. I’d say both the London and New-York open. The first 1 – 2 hours of each session. But again, this greatly depends on what the market sentiment is, as well as the overall outlook if they (Market Makers) plan to move price during the Asian session. It is a grey area with no definite answer. If I was you I’d stick to the basics depending on your experience and knowledge based on how/who/when the FOREX market moves.
2. As you said, there is a big misconception that one should only trade a USD pair during the US market. Not always the case. You can trade the EUR/GBP during Asia if the price action is showing you where the market is heading. So rather look at what the charts are telling you, than worrying about which pair it is you are trading. Of course, the currency linked to the market open will have more volatility, yet again NOT ALWAYS the case.
So to sum this up. Let the charts (Price Action) lead the way, making your trading decisions based off of that. If we had to go into a Forex trading discussion it would be more complex than this.
BTW, if you guys would be interested in how the FOREX market works, let us know and we can definitely write up and article on it.
August 27, 2015 at 11:13 am
Hey Alex I would LOVE if you could do that! I have always focused on binary options trading. I never really gave spot forex trading much thought.. I’m actually quite interested to know if any of the other members trade spot forex and binary options? Is it even possible to concentrate on both?
Thanks in advance
August 27, 2015 at 11:19 am
Good day Caspian.
I trade both of these markets. I find that I can maximize my profits this way. Another important point for me is that I feel much safer leaving my money in a spot forex broker than a binary options broker.
August 27, 2015 at 11:23 am
Wow, thanks for the quick reply there, trader4life!
Thats awesome to know, but would you mind sharing how you manage to trade both marekts? Don’t you get confused? You don’t have to go into detail what strategy you use. Just curious.
August 27, 2015 at 11:33 am
Sure, no problem, we are here to help each other.
I use binary options for intra-day trading where I look for small bounces on certain levels. Spot forex trading on the other hand is more focused on longer term trading. I mostly look at the monthly, weekly, daily and 4 hour timeframes. I will sometimes use the 1 hour for entries and exits. My trades usually last anything from 1 day to a few weeks depending on how strong the trend is. I basically just use binary options to keep myself busy so that I don’t mess around with my spot trades.
Combining these 2 trading strategies gives me a better feeling of what the market might do next. I hope it makes sense for you.
August 28, 2015 at 10:22 am
The only pair I trade is the EUR/USD. I will sometimes trade the GBP/USD. I find that they are easier to trade in the London market session. The Us session is a bit crazy sometimes with all the volatility and news releases.
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