You might be wondering, cause when I posted about the benefits of binary options I have said that you can trade binary options anytime and from anywhere you want . Even though you can trade 24/7, I advice you to do it by these best hours. Why? I thought you want maximum returns with less risk and loss.
Most of the binary options traders are into foreign currency exchange, including me. Because Forex market is highly volatile. It’s actively going up and down because of the constant price change of Forex system, but its a bit easier to predict in which direction market is going and that will benefit with better profits. Of course I mentioned Forex market is highly volatile, so even if a trend is going rapidly up, it may go down in the very next second. That’s scary but also exciting to traders.
Now before we go into the best hours for Forex trading, hope you know about different Forex sessions, there is London session, New York session, Asian session, and Australian session. All these sessions combined covers 24 hours, which means you can trade anytime you want except Saturday and Sunday. Other than weekends Monday and Friday are also not favorite days to trade for some traders. Cause Monday is the day beginning of the week so we can’t really predict the market and Friday is the end day, same unusual thing.
Almost all traders favors Tuesday, Wednesday and Thursday to avoid the unusual market movement. But since its Forex we can’t really predict anything. Besides price action acts very differently in each hour because of those sessions. The most active session is London session. Because Forex is traded mainly in EU. US session second, it is also active next to London. Asian session and Australian session are mostly quiet compared to other sessions. Because of this tendencies, most productive hours are overlapped hours of London and New York session.
As you can see on timetable above, from 12 GMT to 15 GMT, two most active sessions are overlapped. Forex usually uses GMT (Greenwich Mean Time), so you may need to get used to it. By the way, those overlapped hours are the most active and best hours for Forex trading. Most of the traders are targeting these hours. Probably you need too. Because market is moving up and down very actively, you can easily distinguish up trend and down trend. That means that it is relatively easier to tell which direction market is going after some time.
This is a very typical Forex chart. You can easily see how volatile in Europe session compared to Asian session. US session also shows active price action but London session behave a lot more active. Unless you have clear, specific reason you want to trade Asian session or Australian session, it is better choice for newbies to trade in European session. At least for a while until you understand how market usually moves.