Unlike traditional day trading where you need decent market volatility to generate nice gains, binary options do not require a whole lot of movement to generate out-sized gains. So when is the best time to trade binary options…all the time! Ok, so maybe that’s a little over the top but there are certain times during the day that are ideal to trade binary options, so let’s go over 2 specific time frames.

Trading On The Market Open

This is a little tricky. Traders either strongly love or strongly hate trading on market open. Stocks move around with so much volatility that sometimes it feels like a crap shoot in picking an appropriate direction. Binary options brokers know the feeling as well so many don’t allow you to trade binary options until a certain time has passed. These market open time frames range anywhere between 5 minutes all the way up to a half an hour.  For those of you who like to see huge moves in binary option prices you may want to trade binary options as close to the open as possible. One advantage of trading close to the open are these huge moves which can place your trade firmly in the money within minutes of placing the trade. Conversely, the binary trade can move against you immediately, placing your trade firmly out of the money. However, always remember when you trade binary options you always have the ability (at least until the lock out period commences) of hedging your trade. So if the trade moves against you right away you can start to implement a hedging strategy that can, in some instances, completely negate the effects of the unwanted move. Just something to think about as you start to trade binary options.

Trading On The Market Close

While binary platforms may differ on what time they’ll let you start to trade binary options on a daily basis, they all let you trade options into the close of the market. During the last hour of trading you will at times see different stock movement patterns emerge that allow smart binary options traders the ability to place high reward / low risk trades on prior to expiration. We’ve known traders that focus solely on these market close opportunities and have made a killing doing it. This does take a lot of patience though as some wait all day and end up not placing any trades, which can be a frustrating thing. While these setups do not occur everyday, it is best to learn them as you begin to trade binary options.