Binary options weekend trading allows traders to trade all week. There are many opportunities, as the trading hours of the forex market are 24 hours a day, six days a week, and certain markets and indices are open on Saturdays and Sundays. This article outlines the details regarding weekend trading and how you can succeed in online trading over the weekend.
This article examines:
- Deal over the weekend – advantages and disadvantages
- Reasons to trade the markets and assets available on weekends
- Weekend strategy – specific strategies and 3 key tips
With this information, you can succeed in using binary options as your weekend option.
Deal the weekend
Most markets go to bed on Saturday morning, but some are bright and start trading early on weekends. From forex and futures to stocks and cryptocurrencies, many people sleep and drink during two days of potential benefits. On this page we look at all the pros and cons of day trading over the weekend before covering strategies, trading times and important tips.
Grace
First of all, why should you change your relaxing day on the weekends for online trading? Maybe one of the following reasons:
- Profit Potential – There are still two days to trade over the weekend. It takes two more days to earn more. If you haven’t seen a good week yet, you can correct your balance during the weekend.
- Time – With weekend trading, for example, you can trade several currency pairs, and you have enough time to evaluate each trade. Best of all, you don’t have to make a decision, but in a week’s time you may inevitably try to enter and exit the market at a certain price point.
- Strategy – On weekends when the market is suspended, you have time to develop more complicated trading strategies. Additionally, some trading plans perform better on weekends. For example, Asian markets often behave differently on Saturdays and Sundays than Western markets. As a result, certain strategies may yield higher income on weekends and weekdays.
- Unreasonable attention – of course many people work all week. Therefore, it is not easy to find time to focus on trading. Therefore, weekend trading offers a fantastic opportunity to focus on your trading activities. Moreover, fewer distractions can strengthen the trading decisions.
- Trading with ready weekend can be more than just starting and ending a position. While most markets are breathing, you can do in-depth technical analysis. As a result, you can hone your strategy and prepare better until the bell rings on Monday morning.
cons
Despite the number of advantages, there are also disadvantages to day trading on weekends.
- Reduced commodities with no options to trade on weekends. In particular, many supplies are not available. However, the market is open 24/7, making access to currency week trades easy.
- Weekend Bias – There is a risk that weekend bias will be Monday. For example, you may have adjusted your trading plan or desperate to compensate for the loss. If you are not careful, your profitability may drop on Monday.
- Reduced trading volume – You can still trade forex, oil and gold on weekends, but low volume can cause problems such as poor ability to verify price movements. The lack of volume can also lead to charts where the market is flat and unhelpful.
- Limited brokers – Many brokers do not offer weekend deals. They simply do not think that they have an amount or interest that is worth it. So if you are committed to a particular broker, you may not be able to trade unless you move elsewhere. Fortunately, IQ Options, 24 Options, eToro, FXCM and Nadex facilitate weekend trading.
- Trading Hours – Weekend trading may not match your body clock. For example, the Middle East market is regularly active this past weekend. In other words, if you live in the West, you might have to prepare for an agreement during semi-social time.
- Liquidity – The market is often less liquid if the fund manager does not have to undertake other aspects of the transaction. If liquidity decreases, volatility may increase. The result between the bid and the request is greater. This can make income more difficult. However, a high volatility level can also mean an increase in income potential.
Best weekend broker
Why trade at the weekend?
Trading Stocks and Indices
Many traditional goods and markets traded during the week are excluded from the charts on weekends. For example, NASDAQ and other US stock exchanges are closed from 4:00 p.m. Friday to 9:30 a.m. Monday. However, in the Middle East, weekdays work from Sunday to Thursday and Saturday to Wednesday.
In addition, brokers and platforms in the currency and CFD markets offer seven trading days and a variety of local stocks and indices. The index that offers the most daily trading volume over the weekend is:
- Tadawul Index – Saudi Arabia index represents the largest economy in the region. As a result, it is the most popular index for brokers offering weekends.
- Tel Aviv 25 – also known as TA25, the company consists of 25 largest Israeli companies. Those interested in the IT and pharmaceutical industry may be suitable.
- DFM Index – Some of the most important players in the UAE can be found here.
- Kuwait Stock Exchange – Kuwait’s economy is diverse. Therefore, this stock exchange hosts companies in the financial, insurance and real estate sectors.
Saudi Arabia took a week to work with its neighbors, so foreign traders have a better approach than ever before. As they move towards a full approach, liquidity increases and traders will benefit from increased profit potential over the weekend.
However, the brokers did not see the growth of traders running on the weekend. Some are now offering trades in traditionally closed markets. For example, IG offers access to Wall Street as well as FTSE and DAX indices during the weekend. Rules like stop loss are slightly changed (eg weekday trading is not affected by anything that happens during the weekend). This trade shows an increase in the amount of business done over the past weekend by Cryptocurrencies such as Bitcoin and Ripple, which are not limited by market time.
Opportunities for weekend trading will increase as trader activity and trading volume increases.
Cryptocurrency and binary options
Weekend trading with cryptocurrencies and options is also increasing. Bitcoin and Litecoin are two popular digital currencies that contain binary options. As they are primarily internet creations, they can effectively be traded 24/7.
This week the major currencies get the most attention. But late Friday, the volume of cryptocurrency options began to rise.
Additionally, some binary options brokers offer certain weekend options that begin on Friday at the close of US trading and remain open until Monday morning. These options are carefully designed to include events over the weekend, including the presentation of economic data from China and the G-7 conference.
Weekend strategy
The first thing to note is that weekends affect trading strategies. The most important players in the market are offline, therefore unusual dynamics occur over the weekend. As a result, volatility may rise, and volume may decrease.
However, there are strategies developed specifically for trading on weekends. The most effective and simple setup method is described in detail below.
Trading the weekend gaps
The gap is simply an increase in prices. Meanwhile, the price moves up or down as we hit levels. In general, the interval is the result of starting a new movement or accelerating the movement. However, these gaps require significant trading volume. However, these types of gaps are usually not seen because the main market participants are out of action on the weekends. Instead, weekend trading concentrates on the gap.
The gap can be closed by making only a few traders. For example, multiple people may invest in the same direction, whether by accident or not. As a result, the market will rise or fall. Most traders are not sure what is going on. They often think that the price is too high or too low. So they try to take advantage of obvious mistakes by trading in the opposite direction.
- Upward Gap – Upward Gap lets you see that traders are selling securities. The market will fall and the gap will widen.
- Downside intervals – Downside intervals allow traders to buy, the market rises and the gap closes again.
The gap is often closed in small markets such as weekends. This makes the weekend gap an ideal strategy.
Strategy Implementation
Armed with the knowledge that the gap will widen, you can take advantage of market conditions now. Because I know some important information. First, there is a price target because the market moves until the price reaches the level of the initial candlestick that makes the difference. If there is an opening, then sink to the height of the first candlestick.
You also know the expiration. Because we know that the market is ready to reach the strike price within the next period. So the high / low options are available. Or you can increase your income further with one-touch options.
You should also use an expiration option that is shorter than a single period with price targets within the gap.
This is often considered a strategy for trading gaps on weekends. But in practice this technique can be used for both options and commodities.
Finally, if you look at the weekend gap with EA (expert), you can invest more. Based on predefined criteria, this algorithm allows you to perform many more transactions than you can do manually.
Can I capitalize weekends in another way?
If the trading week is long and you really want to stop going in and out, there are plenty of useful activities you can do on the weekend. The best use of time is:
- Backtesting – You can backtest strategies by simulating past market conditions using historical price data. It’s the perfect way to identify and solve problems before planning Monday morning.
- Performance Analysis – Identifying the moments of reflection during busy trading days is often the hardest word. Therefore, weekends are the perfect time to check and review your diary and recent performance. What’s wrong this week? What do I need to change my current strategy? Did emotion drive the decision-making process?
- Risk setting – you can perform a performance analysis to determine whether the setting of risk parameters is appropriate. For example, if your strategy produces more consistent income, you can increase your risk tolerance and location scale.
- Future plans – Weekend trading can consist of next week’s plans. For example, are there events in the economic calendar that can affect stock trading? If so, plan to take advantage of price changes. Benjamin Franklin insisted: ‘If you are not ready, you are setting yourself up to fail.’
- Training – Weekend presentations may be subject to educational resources. There are many courses, webinars, books, e-books, podcasts and useful websites. You can learn all about new strategies or use them based on market knowledge.
3 tips for weekend deals
Even if you are interested in trading currencies, stocks or weekends on futures contracts, there are many useful tips to avoid pitfalls and potentially increase your profits. This includes the following:
1. Check spreads
Spreads often occur due to reduced trading volume and liquidity, so finding a competitive broker is even more important. Because of the low liquidity, the spread can be particularly large in close and open trades at the weekend. So check out competitive spreads that brokers are offering over the weekend.
2. Overcoming slippages
Low liquidity and the likelihood of gaps in weekend trading. Use the market range or maximum deviation function available on certain platforms, such as MetaTrader.
This function allows you to determine the maximum potential slip you will allow. For example, if you set it to 0, there is no fear of slipping.
3.
Trading of News Weekday Day brings special trading behavior. Most of the volatility and activity is driven by news announcements. So stay updated with all the news events related to the market. Financial Juice, CNBC and Yahoo Finance are all reasonable sources.
conclusion
Although often overlooked, there are plenty of opportunities left for those looking to start the weekend with a daily deal. Forex and binary options are available from Friday evening to Monday morning. The Middle Eastern market also offers the volatility and volume required to generate income.
However, it is necessary to change the general strategy or make a weekend plan. Or if you don’t really want to trade, you can use weekends to reinforce trading training and prepare for next week. There are courses available and all the materials described above.