Global Market Hours
All over the world, markets for trading binary options are open at different times during a 24-hour period. For example, the American markets are open when the Australian markets are closed, meaning , that one of the markets cannot immediately react to a potentially market-changing event in the other. Depending on the assets you choose to trade online and the markets you pick, you will need to get acquainted with the different overlap hours as well as the “peak hours” offering the most opportunities and the greatest activity. It is ultimately your binary option strategy that will determine the optimal time to execute a binary option trade. To help you to decide on the right time to for you to trade, here is a list of the different tradable markets and, more importantly, their overlapping trading times.
Global Foreign Exchange Trading Hours (GMT)
When Should I Trade Binary Options?
Trading binary options is available at any time of the day; however, different markets have different trading sessions. Therefore, you need to know when specific markets open and close and which markets overlap because these can highly influence your binary options strategy. For example, knowing how a news event can affect a specific market so that you can plan your strategy accordingly.
There are four main foreign exchange global (FX) markets: New York, London, Tokyo, and Sydney. Market opening and closing times are as follows, and the overlap between markets is mentioned below:
Tokyo hours 00:00 to 09:00 (GMT)
London hours 07:00 to 16:00 (GMT)
New York hours 12:00 to 21:00 (GMT)
Sydney hours 21:00 to 6:00 (GMT)
These are the overlap hours in the FX markets:
New York and London– from 12:00 to 16:00 (GMT) – 4 hour overlap
London and Tokyo overlap– from 07:00 to 09:00 (GMT) – 1 hour overlap
Sydney and Tokyo– from 00:00 to 06:00 (GMT) – 7 hour overlap
Why is it important be familiar with these overlap hours? Because the markets are most active during these times and there is a high trading volume. The overlap hours present optimal binary options trading opportunities, resulting in greatest gains from market volatility.
For example, when trading on EUR/USD, GBP/USD, or USD/CHF currency pairs the best time to boost your chance for trading gains is from is from 12:00 to 16:00 (GMT). This is due to the fact both New York and London markets are open at these times, which ensures the greatest changes in currency movements. Similarly, if you wish to trade on EUR/JPY, the overlap hours of 07:00 to 09:00 offers the biggest trading opportunities.
Alternatively, the time between 21:00 and 00:00 (GMT), when only the Australian market is open and there is no overlap with other markets is the least active time to trade, and is therefore the period with the least potential for taking advantage of market fluctuations.
Of course, there are always opportunities to trade. However, being familiar with the peak market activity periods, when the chances for price swings leading to opportunities for higher gain is at its best, is important for traders at all levels.