Most binary options traders intuitively assume that they are unable to trade binary options on the weekend – which is a misconception.
Of course, the Western world provides every indication to support this thesis. Luckily, there is more than just the Western world.
Other cultures have different work weeks. Consequently, their stock exchanges are open on different days of the week. In the Middle East, for example, the work week runs from Sunday through Thursday in some places and from Saturday through Wednesday in others. The stock exchanges follow this pattern.
To trade a binary option, you need an open stock market. When the market moves, you can make predictions about where it will go.
As long as there are some open markets in the world, you can trade binary options.
The Middle East alone is enough always to guarantee an open market over the weekend. With some stock exchanges open on Saturday and some on Sunday, the weekend is full of trading opportunities.
The first thing you should be aware of is that not all of the typical options are available to you during the weekends.
This means that the most common Call and Put options may not be offered. Instead, you will have to contend with One Touch or Range options.
The other thing that you should be mindful of is that yes, there is a good chance for improved profit. For instance, unlike with the weekly markets, on occasion, you can expect to make up to 400 percent profit.
This does come with a cost as weekend trading can hold a higher risk. This is due to the reduced financial information available as well as very different market and trading conditions too.
Why Trade At Weekends?
- Some people can only trade the weekend. If you are busy on weekdays, the weekend might be your only chance to make a few trades. With a broker that enables you to trade when are free, you gain the chance to combine a trading career with a busy schedule.
- The weekend offers the ideal trading environment for some strategies. When only a few Asian markets are open for trading, the market behaves differently than when most European and American markets are open. The different market environment helps some traders to execute their strategies better than any other market environment. We will later present a few of these strategies.
- More trading time means more profits. With a profitable strategy, more trading time means more profits. Traders with free weekends can use binary options as a profitable alternative to TV and boredom. Dedicated traders might trade seven days a week.
Try for Markets with Different Weekends
Therefore, you may want to consider broadening your horizons. While engaging in foreign markets, you are creating greater opportunities for yourself.
You should be aware that this means immersing yourself in markets that you may not necessarily be familiar with. As such, it is vital that you do the research before randomly placing trades.
Now you may be used to having a weekend on Saturday and Sunday. This is not necessarily true for the rest of the world, however. In the Middle East, in particular, the weekends tend to fall on Fridays and Saturdays.
This means that their financial markets are open on Sunday.
Limitations Of Weekend Trading
1) Broker Trading Times
Some binary options brokers close their trading platforms over the weekend. In their view, there are so few traders that want to spend their weekends doing technical analysis that the efforts simply isn’t worth it.
If you want to trade on the weekend, check your broker’s trading times or contact customer support. If your broker is closed on the weekend, there is nothing you can do aside from switching brokers. If weekend trading is that important to you, check our broker list for a few good tips.
2 ) Only A Limited Selection Of Assets
On the weekend, you can only invest in a limited selection of assets. Stocks and indexes are traded at their home stock exchanges. For example, Google, Apple, and McDonald’s are American companies and traded on the New York Stock Exchange. When the New York Stock Exchange is closed, you are unable to trade binary options based on these assets.
At times when only the Middle Eastern markets are open for business, you can only invest in their stocks and indices. For serious technical analysts, this is no problem – they only trade price movements anyway and are indifferent to the underlying asset.
3)Different Time Zones
Every stock exchange operates in its own time zone. Stock exchanges in the Middle East are far from the United States and many other places, which is why there is a significant time delay. To trade stocks and indices of these stock exchanges, you have to account for these time delays.
The Right Broker is Important
Just because they say that they trade on weekends doesn’t actually mean they will place the trades precisely when you want them to.
Some brokers are simply referring to the practice of taking the trades on the weekends but placing them at the start of the week.
At the top of your list of to-do things should be to find a broker that will actually place trades on weekends.
You should know that only a few of them allow this, not all. You will also need to be careful in understanding just what the broker is offering you.