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Binary Options Trading Strategies: When Should You Trade?

Nov. 27, 2012
Investing, Investments
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Binary options have been making a lot of financial traders curious. A now famous trading market, binary options trading is pretty different from the normal kind of trading which is the first reason why it is already becoming popular catching the attention of financial traders alike. Binary options are gaining so much popularity for a whole lot of reasons. So, how are binary options becoming a popular trading market?

  • Binary options trading gives the trader the power to predict the estimated value of a fundamental asset which is then set as a condition in a binary options trading contract
  • An agent of binary options trading recommends an appropriate premium for the option and the trader can choose whether or not to go after the deal

What is Binary Trading?

Binary trading is a new and exciting method of trading. With binary options, trading has been made a lot easier; all you have to do is predict whether an underlying asset will increase or decrease in a certain period of time.

There are also some rules which are part of the binary options trading depending on the broker’s site. You will never have to care about tons of different charts and indicators because everything you need is available through the binary options site. But, of course, nothing is really ever perfect because there are still flaws you can encounter.

While binary options trading is growing more and more popular these days, this does not assure that it is an easy money making option. That’s why we’re here to help you lessen the hardships you may encounter with these following tips on binary options trading.

Approach #1: Stocks Timing

As mentioned, stocks are typically traded for 8 hours maximum daily. Stocks of major companies from outside the US that trade on US stock markets are called ADRs or American Depository Receipts. That’s why the markets from the US are often used as a basis for examining the hours for trading stocks. Stock markets from the US frequently trade between 9.30am to 4pm New York time, or EST.

Nevertheless, other European markets are as essential, such is the FTSE (operating from 7am to 3.30pm GMT) and Germany’s Xetra Dax (operating from 8am- 4.30pm GMT). If you plan on exchanging binary options trading stocks, you must know the times when the particular stock operates.

Approach #2: Monitor Currencies’ Activities

The popular Forex market is at its busiest during these overlay time zones- London/Asia and London/New York.

You must also know that the local currencies of the time zone that is active will have an impact on the improvement of volatility or instability above others. For example, the Australian Dollar is more dynamic all through the time zone overlap of Asia/London than the time zone overlap of London/New York.

Approach #3: Check the Commodities’ Active Times

Commodity markets are at their busiest during these following times:

  • Crude Oil (NYMEX.CL):  9AM-2:30PM. EST
  • Natural Gas: 9:30AM TO 5:15PM, EST
  • Corn: 9:30AM-1:15PM, EST
  • Gold: 8:20AM -5:15PM, EST
  • Silver: 8:25AM-5:15PM, EST

You could also check the times of trading by clustering the commodities based on the exchange markets where they are being traded. The Chicago Mercantile Exchange usually trades the agricultural commodities between 9:30AM-1:15PM EST and between 6PM-7:15AM EST of the following day. Complete information trading hours are available on the CME Group’s website.

Story by Guest Contributor Jason Boden of BinaryOptions.net