Binary options are characterized by their short timeframe before they expire. This means there is a very small trading window from which to profit from in binary option trading. Nevertheless, there are strategies to help a trader decide when the best time to trade in binary options is. To maximize one’s trade in binary options, there must be movement of prices in the underlying asset. This movement usually occur when there is news that will affect the economy like the announcement of unemployment figures or the announcement by the central bank of a change in interest rates. Movements in prices also occur when period of trading activity that occurs when the market opens.
One of the best ways of keeping up to date with economic news that deals with economic events is to refer to an economic events calendar. As a trader in the financial markets, it is always a wise move to read an economic calendar that shows all the major economic and political changes from the past, present and the future. This will help traders in anticipating when movements in prices are likely to occur and make adjustment to their trading strategies. Of course an economic calendar cannot cover all possible events in the economic or political arena. The recent economic and political crisis faced by Italy and Greece in the European Union is good example of how the financial markets reacts to news and rumours concerning who will be the next Prime Minister of those countries. In such a situation, the best way is to just keep abreast of all developments by monitoring the news constantly. You can read the making the news section.
Another good time to trade in binary options is when there is activity. Trading activities normally occur when the main markets open around the world. As there is no central exchange, this means the market is almost constantly busy. However, trading activities normally peaks during the opening times of major exchanges during European trading session, US trading session and Asian trading session. Thus, to get the maximum movement of prices, it is ideal to time your trade during the times when these major markets are open for the business day in their respective time zone.
These two strategies although simple are actually quite effective in pinpointing the ideal trading time for a binary option trader. Apart from time factor, it is also important to decide which market that a trader wishes to focus on. This is because different markets have different driving force in moving the prices of asset traded. If a trader wishes to deal in options that relate to commodities, it would be wise to keep a close on the main exchange dealing with commodities like the Chicago Mercantile Exchange and the New York Mercantile Exchange.