Basics of binary options: binary option trading sessions

The region of the trading session and related macro- and micro-economic indicators have a significant impact on the dynamics, trading volumes and liquidity of binary options market in a certain period. Taking into account the time features makes it possible to increase the profitability of the strategy, choose the right asset and avoid unnecessary losses.

The schedule of trading sessions and opening hours of currency exchanges is set according to a single (universally coordinated) UTC (Eng. Coordinated Universal Time). By default, a local time can be used in broker’s terminals, and in this case, if possible, set the zero offset from UTC in the settings.

Asia (00–09:00UTC)

The beginning of the trading day and the main market sentiment. During the trading session, about 25% of transactions on the Yuan, the Yuan and the Singapore dollar are concluded:

  • “Thin” market with low liquidity. This period is used by large players in the first place to move the market to the price levels they need, and the issue of current profit is fading into the background.
  • Australian and Japanese statistics released during this period set daily ranges for pairs with AUD and JPY. Official statements are usually scheduled for the end of the session;
  • the main volume of the yen is given by large dollar investors and the Bank of Japan, which conducts interventions and transactions of large exporters to convert the yen into the US dollar;
  • Pay attention to the morning binary options signals of raw materials (iron ore, copper, gold) of the Shanghai commodity exchange and other economic news from China. They may be the cause of speculative movements in AUD, NZD and JPY;

If the previous trading session was active trading of the main pairs, then the current period of general consolidation may be.

Despite the increase in the share of Hong Kong, Shanghai and Singapore, the leading Asian financial centre remains Tokyo, through which almost 80% of foreign exchange and financial transactions pass.

Professional traders made it a rule for all Forex trading sessions to start the starting point for measuring daily momentum (an indicator of price dynamics) for the opening of the Tokyo Exchange.

For those who are not afraid of risk, Asian trading sessions will be the most profitable for USDJPY, GBPCHF and GBPJPY pairs. At this time they have a large range of motion (average 80–90 points), which how to make money on binary options for short-term trades within the general trend.

For moderate trading, AUDJPY, NZDJPY and their equivalents with the US dollar are suitable. In addition to low volatility, these assets have a pronounced trend structure. Mineral exports occupy a significant share of the Australian and New Zealand economies, so changes in free binary signals of commodity futures and other derivatives are immediately triggered by the response of national currencies.

In the Asian trading session before the opening of Tokyo at 00:00 (24:00) UMT, you can open two multidirectional (locked) transactions with a step of 10–15 and Take Profit of 5–10 points. Corporate relations between Japanese investors are very close and usually, they go lazily in the same direction. After the opening of Shanghai and Hong Kong at 01:00, we follow the actions of the Chinese: if the dollar is bought massively, the day will be extremely unstable, the purchase of the Euro-everything will go according to technical analysis without sharp movements.

Asia/Europe (07–09:00UTC)

Exchanges in Moscow, Frankfurt and Johannesburg start work and during the next two hours of the trading session positions open jointly with Asia. This is the lowest period of the day when overnight gains and losses are recorded before the opening of London.

Europe (07–16:30UTC)

The most predictable period in terms of technical analysis. After 10:00 UTC, price impulses become less aggressive and begin to grow only before the discovery of America:

  • Current trends in EUR, GBP and CHF determine the first 2–3 hours of the trading session;
  • Trading volumes for USDJPY, GBPJPY and EURJPY are increasing;
  • Why signals for binary options work? All major European market makers are on the market, including the European Central Bank;
  • Published statistics for the UK and the Eurozone as a whole, there are speeches of Central Bankers. The strongest reaction is given by the news released before 10: 00UTC;
  • Increased volatility in the second half — portfolio investors begin converting European capital into dollar-linked assets before the opening of the next trading session.

The process of Britain’s withdrawal from the EU may deprive London of its status as the world’s largest dealing centre, but the schedule of trading sessions will not change. The European currency market will continue to be the largest in terms of activity and volume of transactions. Offering the largest selection of liquid:

As we can see in the presence of a minimum of 5–6 pairs, the daily trading range of which is more than 80 points, which makes it possible to apply any intraday strategy. News trading on European events is possible, but on profits it is much inferior to the foundation, coming out after the opening of the American trading session!

High risk is undesirable; it is recommended the exact binary options strategy with an average range of 50 points. There is no frequent speculative activity, deep corrections and rollbacks. This is especially true for NZDUSD and AUDUSD.

The European trading session at 11: 00–13: 00 is strongly influenced by the closing of oil trading on Middle Eastern stock exchanges, which take a significant share of dollar liquidity. As a result, the short-term growth of the Euro is possible.

Europe/America (13:30–16:30UTC)

The highest daily activity and volatility of the main currency pairs with the Euro and our dollars:

  • High volatility attracts a large number of small and medium-sized traders, who often become the “mining” of market makers;
  • During this period, Central banks, hedge funds and institutional investors enter the market. Attempts are being made to change the current trend and binary options trading signals may be false.
  • Fundamental data for the United States and Canada are published. News such as Non-Farm employment NFP can determine the new direction of the market for the coming weeks or even months in 5–7 minutes;
  • In parallel, there are trading sessions on currency and commodity futures that directly affect the quotes of related currencies.

America (13: 30–20:00UTC)

The most unpredictable trading session due to the mentality of American traders who love risky transactions to strengthen the dollar. Here the main behind-the-scenes financial intrigues take place; speculative actions are possible at any time before closing, especially on Friday:

  • The start of trading in New York is often accompanied by the publication of news and statistics, which causes an increase in the liquidity of the Forex market. American macroeconomic indicators affect major currency and commodity assets, such as commodity futures;
  • Capital moves between currency and stock trading platforms, as the schedule of trading sessions allows you to quickly convert to USD for transactions with stocks, futures and options.
  • during the trading session, most transactions are made in minor currencies of the American region, such as the Brazilian real and the Mexican peso;
  • The accumulation of speculative volumes that are ready to quickly move the market in any direction gives special weight to speeches by the heads of the Fed and other official press releases. Depending on them, a decision is made to continue or change medium-term trends.

The bulk of transactions in the trading session falls on the period 13.30–17.00UTC. European players continue to remain in the market, and liquidity is not declining. At the same time, the binary options bots are making the biggest turns here in pairs GBPJPY

The problem with cross rates is that you need two operations to make a deal. For example, GBPJPY from the exchange includes two pairs of USDJPY and GBPUSD with inverse correlation, which increases volatility.

In proportion to the profit, the risk also increases: other Forex trading sessions do not give such several triggering stops of small players by purposeful actions of market makers.

From the moment of opening, Americans begin to try to reverse the trend that previous Forex trading sessions formed.

Trading sessions should be considered by the strategy for binary options to achieve a positive result at the end of the day. Special attention is paid to automatic advisers who can quickly lose their earnings by continuing to trade outside their “own” period. And do not forget to make corrections for the time of the terminal, if it does not coincide with UMT!

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