As mentioned in previous lessons, binary option brokers offer a variety of binary options, including, currencies, shares, commodities, and indices. Each of there binary options can have different trading hours. Sam gives an insight to the trading hours of each of these different binary options.
BO113 Lesson – Trading Hours Transcript
Binary Options 113, Trading Hours. As mentioned in previous videos, binary option brokers offer a variety of binary options which can include shares, commodities, indices, and Forex, or currencies. Each of these binary options are priced according to the underlying asset. So each had different trading hours.
For example, shares listed on the London Stock Exchange will be traded during UK trading hours whereas shares listed on the New York Stock Exchange or Tokyo Stock Exchange would obviously have different trading hours. Even though commodities can be listed on the same exchange, each commodity can have its own individual trading hours.
And indices, the same with shares, have trading hours according to their geographical location. And I’ve listed shares, commodities, and indices under Group 1 for trading hours, because all of these binary options have their own individual trading hours. Binary option brokers should have information on their websites detailing trading hours for each binary option.
Forex, or currencies, are slightly different. Hence, I’ve listed Forex under Group 2 [? or a ?] different group to shares, commodities, and indices– the reason being the currency markets are pretty much traded 24/5. The currency markets or Forex markets open 9 o’clock GMT Sunday evening and close 9 o’clock GMT Friday evening, or open Sunday afternoon in the United States and close Friday afternoon in the United States.
Let me give you more detail to the trading hours of the Forex markets. We can break down a 24-hour Forex trading day into four major sessions– the Sydney session, the Tokyo session, the London session, and the New York session. In this table, I have added the opening and close to each session. And the opening and close is displayed in EDT and GMT.
|New York Open||0800||1200|
|New York Close||1700||2100|
It’s important to note that these hours are the summer hours and at different times of the year, trading hours for each session may be slightly different due to daylight savings. You’ll notice that one market doesn’t close and another one opens. And we have these four block-like trading sessions.
Rather instead, these sessions overlap. And that is generally where markets are most volatile or there is great price movement. For example, if we look at the Tokyo session, while the Tokyo session is open, the Sydney session is also open. And as we come to the end of the Tokyo session, the London session is open. Obviously, the more sessions that are open at a particular time, the more people may be trading. Hence, the greater price movement when sessions overlap.
This bottom table ranks price movement for three of the main currency pairs per session. The Euro/USD, the pound against the dollar, and the dollar/yen. You’ll notice that the London session is ranked first for each of these currency pairs with regards to price movement, because there is greater price movement in the London session for these three pairs than the New York session and the Tokyo session.
If we look at the London session, you’ll notice in summer hours there is an hour overlap between the Tokyo session and the London session. But more importantly, for nearly half of the London session, the New York session is also open. Even though greater price movement occurs in the London session, that’s not to say the Tokyo session or the New York session are not good sessions to trade. But on average, the London session has greater price movement.