What is the best time to trade on iq option

Those of you interested in Forex have probably noticed that trading results depend on the time of the day. This phenomenon can be easily explained when looking into the concept of trading sessions. Forex is a 24/5 market, which means that currency pairs are traded around the clock Monday to Friday. It is possible thanks to the combination of four overlapping trading sessions that facilitate continuous trading. Due to various factors, volatility changes throughout the day. And as you know, trading results will depend on volatility. So, what is the best time to trade?
Choosing the best trading session for Forex
As seen in the picture above, volatility is different throughout the day, which, in turn, means that the number of trading opportunities and potential profit (or loss) will also depend on the time you trade. The higher the volatility the higher the risk-return ratio. More than that, each trading session has a number of distinct characteristics that traders might find worth knowing.

Pacific (10 PM — 7 AM GMT+1)

This is the first trading session of the day. It is the least volatile and massive price swings are not generally expected. Experienced traders do not usually trade during the Pacific session (due to low volatility), yet it is still possible to analyze the market and start making predictions. Currency pairs with AUS and NZD are quite popular during this session (which doesn’t necessarily mean that these are always the best assets to trade).

Asian (1 AM — 10 AM GMT+1)

Tokyo, Singapore and Hong Kong stock exchanges are active during the Asian session. Currency pairs that include the Japanese Yen are actively traded during this session. The number of active traders and volatility go up. The end of this trading session is usually more volatile than its beginning.

European (8 AM — 4 PM GMT+1)

London and Frankfurt are the most important financial markets in Europe. This session overlaps with the Asian session in the beginning and the American one closer to its end. During this section volatility has a tendency of going up. European currencies, including EUR, GBP, CHF, enjoy higher popularity (however this does not necessarily mean that trading these currencies will be successful).

American (1 PM — 10 PM GMT+1)

American, Canadian and Brazilian markets operate during this trading session.  The American trading session is the most volatile and aggressive of all four. Market participants pay a lot of attention to major news and announcements that get published during this session. USD and CAD are actively traded during this time.
It is also worth noting that currency pairs that correspond to a particular region will have higher volatility during the respective trading session (like AUD for Pacific and JPY for Asian trading sessions). Traders are supposed to adjust their behavior to a particular trading session.
So, what is the best trading session and when should you trade? Well, there is no clear answer to this question, as trading opportunities are numerous and can present themselves on all four session. Still, experienced traders stick to the periods of high volatility, namely the European and American session. Novice traders may find it useful to try trading on all 4 sessions in order to familiarize themselves with their respective feature. And of course, the choice of optimal trading hours will depend on your location, as there is no need to stick to an unusual/unhealthy trading schedule.
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best time to trade iq option

Many traders wonder what is the best time to trade binary options because they are one of the most traded instruments on IQ Option. If you’re trading currency pairs on IQ Option (forex, option or digital option), the time which you choose to trade coupled with the currency pair will play a huge role in your success. So it is important to know the best time to trade IQ Option.  There are four major financial markets; Sydney, Tokyo, London and New York. Depending on your timezone, each market is either open during the morning, afternoon or evening.

So if you want to benefit from the right market conditions, timing when a particular market is open will be necessary. For example, if you prefer trading when markets are highly volatile, there are specific trading windows in all currency markets that allow you to trade. If on the other hand you prefer ranging markets where entering short positions is possible, you can easily predict the time windows when this happens.

This guide will show you the best time to trade binary options. No matter if you are in India, Kenya or South Africa.

Note that I’m using the GMT time zone (London time) in this article.

clock different time zones on the wall

Can you trade binary options 24 7?

The best for trading binary options on IQ Option are options on currency pairs. In theory, you can trade them 24 hours a day 7 days a week. Yes, you read that right, weekends too. Except that, on weekends the quotes will come from the so-called OTC. In binary options, the idea is to predict the rise or fall of the price at a time specified as expiry. Therefore, it seems that trading around the clock is not quite the right solution. Different currency pairs have different volatility throughout the 24-hour period. We need this volatility, and the higher the better.

What is the best time frame to trade binary options?

Choosing a time frame is different from choosing the best time to trade binary options. I personally like to trade using the 5-minute chart. It is not the only possible way. When choosing a chart to analyze, you must also consider how long option expiration times you are interested in. IQ Option gives you the flexibility to choose options expiry starting from 1 minute and ending with options that expire at the end of the month.

Binary options offer flexible expiry time

For day trading, the best way is to work on charts from 1 minute to 15 minutes. Then the best expiration times are from 5 minutes to say 2-3 hours. But if you set the option expiry time at the end of the week or month, your analysis will be broader if you use daily charts.

What is the best time to trade binary options?

Each trader has their preferred trading time. Some prefer trading in the morning, others in the afternoon, while others prefer late at night. The following examples should give you an idea about the currency pairs to trade. This will help you choose the best time to trade binary options that suits you.

If you prefer trading morning hours to noon (5 am to 12 pm)

Currency pairs with high volatility: NZD/USD, EUR/JPY, GBP/USD

Currency pairs with average volatility: USD/JPY, USD/CHF, USD/CAD

If you prefer trading afternoon hours to early evening (12 pm to 7 pm)

Currency pairs with high volatility:  EUR/JPY, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, EUR/GBP

Currency pairs with average volatility: AUD/USD, NZD/USD

If you prefer trading late evening into the early morning (7 pm to 5 am)

Currency pairs with high volatility:AUD/USD

Currency pairs with average volatility: EUR/JPY, NZD/USD, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, EUR/GBP

For a better understanding of the volatility of different currency pairs during specific time intervals, take a look at the following 10 charts.

volatility-audusd volatility-nzdusd volatility-eurjpy volatility-usdjpy

 

volatility-usdchf volatility-usdcad volatility-gbpusd volatility-gbpjpy volatility-eurusd volatility-eurgbp

 

 

 

 

 

 

 

 

 

 

Making money trading currency pairs requires you identify a time interval that best suits your trading strategy. For example, if you prefer trading when markets are highly volatile, the 12.00 GMT to 19.00 GMT time frame offers the best time to trade options.

Now that you’ve learned how to select the best time to trade on IQ Option, start applying these skills today. As always, start by trading on your practice account to identify when’s the best time to trade.

Good luck!

 

General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose

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One of the goals of a trader is to find the optimal entry and exit time for his or her deals. Quite often finding the right moment is the key factor that might determine if the deal will be in or out-of-money. Markets are always changing and the way they function is quite important to understand. 

Of course, there is no sure way to always know the right time to trade, because the markets can be quite unpredictable. Still, it is possible to study the markets and learn about the patterns and the ways they function in order to potentially find the appropriate trading time.

Follow the trading sessions

Financial markets function 24/5. When the trading stops on one side of the world, traders on the other side just start their day. This way, trading sessions follow each other and overlap, creating potential opportunities for traders. 

Traditionally, traders follow the 3 trading sessions of peak activity – the European, Asian and North American sessions. They are also referred to as London, Tokyo and New York sessions according to the financial centers of each one of them. 

The higher activity on the markets is observed when business is conducted in these three regions, as most banks and corporations conduct their daily business there. Let’s have a closer look at the trading sessions.

1.

The Asian session.

It starts at 23:00 GMT and goes on until 8:00 GMT. The Asian session includes Japan, but also countries such as China, Australia and New Zealand, so the timeframe of this market session extends beyond Tokyo hours. The Asian session may set the trend for other sessions that follow it, so it may be important to pay attention to the events that take place during those hours. As it is the Asian market that is involved, currency pairs with JPY for example might increase in volatility.

2. The European session.

One of the main features about it is that it overlaps with the Asian session in the morning and the American session in the evening. It starts at 7:00 GMT and lasts until 16:00 GMT. This timezone involves multiple major financial markets, including London, Frankfurt, Paris and Moscow. The popular currency pairs within this time may include for example GBP and EUR, and usually the volatility increases.

3. The American session.

The New York trading session includes not just the USA, but also Brazil, Mexico, Canada. It lasts from 12:00 GMT (noon) until 20:00 GMT. The overlap of the American and European markets makes prices more dynamic in currency pairs for example EUR/USD due to the higher trading activity. 

Understanding the timing of different trading sessions is key to planning a trading strategy. High volatility may contribute to day trader’s results, but it also increases the risks. A trader has to pay attention to the market situation and adapt their actions accordingly.

Pay attention to important news

Following the trading sessions may not be enough, as it is important to understand the sources and the reasons for increasing or decreasing volatility of assets. Traders may check the news and use the economic calendar to spot such occasions. 

Such reasons may be regional and national economic factors, like the key rate and tax policies, inflation rate, non-farm payroll etc. Major weather events, protests or a new twitter message from the president of the United States – all of these things can have a strong influence on the market.  

Seeing the bigger picture and being able to make connections between the events might help traders plan their deals in a more efficient way.

Conclusion

There is no right answer to the question “what is the best possible time to trade?” as it depends on many components. The reply to this question can be different according to one’s trading approach, the timeframe they trade and the market they target. Following the market and checking the news may be a very useful habit for both novice and experienced traders.

Written by Jane