If you’ve been trading for a while, you might have noticed that trading results depend on the time of the day. This phenomenon can be easily explained when looking into the concept of trading sessions. For instance, the Forex market is open 24/5, which means that currency pairs are traded around the clock Monday to Friday. It is possible thanks to the combination of four overlapping trading sessions that facilitate continuous trading. When it comes to the question of when to trade binary options, the answer may differ from other assets. Let’s have a look at the concept of trading session and try to understand what is the best time to trade binary options and other assets.
As seen in the picture above, volatility is different throughout the day, which, in turn, means that the number of trading opportunities and potential profit (or loss) will also depend on the time you trade. The higher the volatility, the higher the risk-return ratio. More than that, each trading session has a number of distinct characteristics that traders might find worth knowing when choosing the optimal IQ Option trading time.
The Pacific Trading Session (10 pm – 7 am GMT+1)
This is the first trading session of the day. It is the least volatile, and massive price swings are not generally expected. Experienced traders do not usually trade during the Pacific session (due to low volatility), yet it is still possible to analyse the market and start making predictions. Currency pairs with AUS and NZD are quite popular during this session (which doesn’t necessarily mean that these are always the best assets to trade).
The Asian Trading Session (1 am – 10 am GMT+1)
Tokyo, Singapore and Hong Kong stock exchanges are active during the Asian session. Currency pairs that include the Japanese Yen are actively traded during this session. The number of active traders and volatility go up. The end of this trading session is usually more volatile than its beginning, so keep that in mind when looking for the optimal IQ Option trading time.
The European Trading Session (8 am – 4 pm GMT+1)
London and Frankfurt are the most important financial markets in Europe. This session overlaps with the Asian session in the beginning and the American one closer to its end. During this section, volatility has a tendency of going up. European currencies, including EUR, GBP, CHF, enjoy higher popularity (however this does not necessarily mean that trading these currencies will be successful).
The American Trading Session (1 pm – 10 pm GMT+1)
American, Canadian and Brazilian markets operate during this trading session. The American trading session is the most volatile and aggressive of all four. Market participants pay a lot of attention to major news and announcements that get published during this session. USD and CAD are actively traded during this time.
It is also worth noting that currency pairs that correspond to a particular region will have higher volatility during the respective trading session (like AUD for Pacific and JPY for Asian trading sessions). Traders are supposed to adjust their behaviour to a particular trading session when testing different IQ Option trading times.
What is the best time to trade binary options?
When it comes to deciding when to trade binary options, there are a few key points to keep in mind. Firstly, the majority of binary options assets trade during the regular working week (Monday to Friday). The specific trading times might vary depending on an asset.
So, what time does the binary options market open? The answer might vary. You can always check when the binary options trading times in the traderoom.
To do this, click on the ‘Info’ tab below the asset name to discover more information.
Then, choose ‘Trading conditions’ on the left-side menu to see the schedule for your timezone.
Picking the best time to trade binary options for you might require some experimentation. Some traders prefer one trading session, others might choose another. Your decision can also depend on your personal schedule and preferences. For instance, if you only have time to trade in the evening, you can adjust your strategy and the choice of assets to fit your situation.
IQ Option OTC schedule
One more thing to consider is OTC trading. OTC, or over-the-counter market, refers to assets that trade on a different schedule from the regular trading sessions. This means that you can trade some binary options assets at different times, including the weekend. You can check the IQ Option OTC schedule for specific assets marked ‘OTC’ in the asset selector in the traderoom.
Just like for any other assets, click on the ‘Info’ tab and review the ‘Trading conditions’ section of the menu.
So, what is the best trading session, and when to trade binary options and other assets? There is no one-size-fits-all answer to this question, as trading opportunities are numerous and can present themselves on all four sessions. Still, experienced traders stick to the periods of high volatility, namely the European and American sessions. Novice traders may find it useful to try trading in all 4 sessions to familiarize themselves with their respective features. And of course, the choice of optimal trading hours will depend on your location, as there is no need to stick to an unusual/unhealthy trading schedule.
