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Trading on binary options can be very versatile depending on a time you enter the market. Most assets are active during European day-time, as well as the market is more volatile and payouts are higher. In the night time you face less assets and volatility is much lower. Let's find out if you are day-time or night-time trader! First of all, you need to determine a perfect time for you to trade on, when you can focus on the market.
Here is a timetable of the sessions of the market, check it out to find the one which suits you the most. During the day-time the market is the most active. You can benefit from getting market news, economic outlook and events and turn that knowledge to the profit.
You need to keep yourself informed of the recent changes of the market in order to predict the trend of particular asset correctly. The market is very volatile during the day. More volatility means greater profit or loss. In this case day trading requires your time, the process of tracking the marketing and catching opportunities should be as fast as possible. The first aspect you need to consider when choosing an asset is the time zone the instrument is traded in. For example, stocks are traded in their home markets, while currencies and commodities are traded on every major stock exchange around the world.
Movement of the instruments is constantly changing which makes trading more interesting. We offer you various assets to invest in. The whole list of assets and trading hours you can see in here https: Most of the strategies you can find on the Web are applied to the time when the market is most volatile.
They work the best in a fast-paced environment with high volume and high volatility. Bigger part of traders prefer on the most well known strategy called Martingale. That suits the best who prefer steady income.
If you have market knowledge the strategy can give you extraordinarily good results. You need to be sure that your broker allows to make small investments and high payout rate.
You can benefit from Signals, indicators and other tools for market analysis as well. Binary options signals help trader to make a prediction about changes in the market price of available assets.
Indicator such as Bollinger Bands can help in scalping strategy. Trading in the night time can bring you absolutely different experience. You will not face most of the assets, the movement of quotes will be much smoother. During the night time the market faces up low volatility. Consequently, it can make risks much lower. Most of the trades are closed At the Money because of stagnation and absence of new quotes coming.
The main trading risks arise from volatile market, and the cause of volatility — economic events, news, speculative reaction of the traders. All this is inherent in the American and European sessions. Activity gradually decreases closer to the night. About the earnings with minimal risk in a quiet market I will discuss below.
Night traders definitely experience less pressure, it can be easier to predict the trend of the asset, as well as take advantage of various strategies which works the best at night for example scalping and scaling on the low volatility.
During the day-time most of the assets are traded and lack of opportunity can be faced during the night-time. Currencies are influenced by fundamental factors such as GDP, inflation, monthly economic statistics etc. News about changes in the factors will have an immediate, significant impact on currency pairs. During the night time there is less impact from the factors and people can ideally trade with different trading strategy.
In such market conditions it is recommended to trade currencies in lower time frames with a usage of trend indicators. When choosing a time to trade on you need to get perfect understanding of the market sessions, market behavior and variety of assets. If you know the basics of what sessions and hours mean to you as a trader you can easily determine a strategy and trading plan, practice them and choose the most suitable for you!
It does not matter what time frame you trade on, you should have a checklist which helps you determine what type of market environment you are trading in. This will help with minimizing risks and achieving higher profit. As a trader, you have to decide for yourself which time frame to follow.
We recommend you try both and stick with the one that works best for you. The London session opens at 3: Sincerely yours, Ayrex Team.