Best intervals for trading binary options
Having some knowledge about trading binary means, beyond the specific knowledge on how to conduct technical trading (moving averages, Bollinger bands, MACD, reversal or continuation pattern, candlestick basic) also know how to find the right timing for the 'entry into the market, based on the type of dynamic that we seek in our style.
Not for nothing, you are creating a clear line of demarcation between trading based on the directionality and trading based on volatility.
So, let's make it clear lines which are the preferred times to which we can do trading, depending on the preference of our investment technique.
The thickness of the market matters a lot?
First of all, what does it mean that a market is "often" than another? There is greater liquidity and binary option trading volume on the market, compared to other types of market. Therefore, a greater influx of demand versus supply. This creates what? More "spectrum" of price fluctuations that tend to move with greater dynamism between a point and the other of the chart.
It 'an advantage or a handicap for our trading results? From one point of view, it is an undeniable privilege view of the fact that, for certain types of options, we have a greater chance of traceability of prices. But it is well to note that the range options are not always provided for all types of asset as certainly as intuirete each trade must be based on a fair combination of difficulties in forecasting results ( risk ) and performance . The options range are at increased performance of classic options call / put, these are exotic options and can in no way imply that trade in its dynamics has greater predictability of prices swing around a band-target, compared to what it should be the level of difficulty (risk) standards for the performance.
Here we respond to the demand for certain traders "novice". Why can not I find all the options contracts, the various assets that the broker makes available to me? Certainly, a big problem is represented by the fact that not always we can afford to use that type of dynamic for the option type, or at least the characteristics of the market are incompatible with the level of risk-return associable for the option contract. Now, what can happen always for a particular asset (if typically has a low volatile trend, for example) or at certain times for that type of asset (precisely, because in certain phase of market opening in the underlying object has no volatility of this).
Certainly, the thickness of the market has a lot to figure out:
- ideal options for our underlying
- the reaction of prices and margins of uncertainty forecast
We are looking for volatility. When entering the market?
We take into account the fact that the higher volatility also respects "precise timing" the market, in the sense that usually the opening of the market, the volatility is higher. Conversely, in the vicinity of closing of the same.
In fact, here we are in the process of closing the market for both the pound (the London Stock Exchange, based on our time zone opens at 9:00 and closes at 17:00 ) for the Swiss franc in a state of static trend the market. The prices back on the trajectory of the bottom and remain there usually creating a sort of "snake" until the next re-opening of the markets.
Nothing mean that we can take advantage of this semi-mobile prices. In what way? Simple. E 'enough to try to understand the point of minimum intra-day, before the expiration of the option (in the example above is of 17:55 ), and then choose evidently closing above the entry price.Or you can "take advantage" of gliding prices towards new phases of calm to go short on the market.
Trading is also a matter of smart choices and smart, but also prudent, in observance of the normal prudential criteria.
Here are some additional straight in other markets, as well as timetable of higher volatility, if you prefer to major revenue opportunities that will provide periods of greater market dynamism:
- Wall Street : according to our time zone, opens at 14:00 but closes 23:00 . Regarding equities, however we have to wait, however, until 15 o'clock to watch the dynamic real-time resulting in the opening phase of listing. Very important are the times that usually occur official communications because these affect the more or less price volatility and in any case we have to wait about half an hour from the opening of markets for the first "sentinel" warning about future prices (maneuvers expansion or monetary tightening, increase or reduction in official interest rates
- Frankfurt : peak times ranging from 8:00 to 16:00
- Tokyo : It is a unique place, because although you choose the opening hours of the market where the volatility is expected to be more significant, usually has a reduced margin volatility and market depth. And 'the market for those who want to "small numbers", at least in proportion to other financial centers. Not to mention that Shanghai has tried to create a composite, combining various markets to rival Tokyo which is still one of the most promising markets in the East, in the context of the rising sun. But such maneuvers, according to the latest rumors, are targeted to launch renminbi that must be characterized by greater internationalization. In any case, for those interested in small trading volumes, to one that is typical of such markets, it has to enter the market to ' one in the morning (AM) . The market closes at 10:00 AM , during the closing meeting the Milan Stock Exchange and London, but never Wall Street.