By Darrell Martin
Trading binary options in the morning or the evening sessions might be perfect for you if you have other responsibilities that keep you from trading during the regular daytime trading hours. News reports are released around the world at times applicable to the countries where they happen. The release of news reports creates volatility and movement, which is great for trading. You can trade forex pairs binary options.
Worldwide Trading Sessions
Listed below are the different trading sessions around the world and the available forex pairs:
News Reports and More
As mentioned earlier, the news released during these trading sessions can have an impact on your trading, but there are other things of which to be aware. Look for reports that will have a heavy impact on trading. There are websites offering this information. The reports will be classified as High, Medium or Low Importance. Watch for times when two countries have several reports coming out at the same time. This would be the case, for example, when both the US and Canada release Nonfarm Payrolls, Trade Balance, Employment and Unemployment rates at 8:30 AM on a Friday. All of these reports would affect the USD/CAD. Another thing to be aware of is earnings announcements, especially from big companies, which can affect the US indices. There are many online calendars to help you find trades relating to news and announcements.
Intraday or Daily Binary Options
How much time is needed for your trade to play out? Will the impact of the news be quick or will it take more time to see results? If it is going to take time, you would probably want to look for a daily expiration time. Intraday expirations offer lower premium with higher payout but less time. Make sure to choose the one that gives you the best risk/reward. With binaries, it really depends on the expected move and the available fill prices.
Using ITM (In The Money), ATM (At The Money) or OTM (Out of The Money) binary options all have trade offs and it’s important to understand the differences to how the binary pricing is impacted.
The next articles in this series will help you analyze the history of the news releases and choose a strategy. Even if your day is full of other obligations, there is news happening around the world offering you trading opportunities around the clock.