The great thing about binary options is that you can trade them pretty much any time of the day. Since you are trading financial instruments online, you can effectively access markets all over the world. It should be remembered that your chosen financial instruments may have heavier or lighter trading volumes depending on the times you trade. There are 4 major financial markets including:
- Tokyo is open from 11PM – 8AM (GMT)
- London is open from 7AM – 4PM (GMT)
- New York is open from 12PM – 9PM (GMT)
- Sydney is open from 9PM – 6AM (GMT)
The market trading hours between Tokyo and Sydney overlap between 11PM – 6AM (GMT), while London overlaps with New York between 12PM – 4PM (GMT). Once New York and London close, Sydney opens, followed by Tokyo, then Singapore. You effectively have markets open (in varying degrees) 24 hours per day during a regular business week. The binary options you choose to trade will be influenced by which markets are open at the time of your trades. For the highest volatility, it is best to trade when New York and London overlap.
When you trade currencies like GBP/USD, USD/CHF and EUR/USD, your most profitable trading sessions will be during the New York/London overlap. For traders in Europe wanting to trade with the EUR/JPY currency pair, the best time to trade is when London and Tokyo overlap. Between 9PM – 11PM GMT the markets have the lowest volatility since only Sydney is open.
It’s always a good idea to use a market widget with the hours of operation clearly displayed between New York, London, Tokyo and Sydney.