The Advantage of Trading Binary Options During Slow Trading Periods

Most traders prefer to avoid slow trading periods because prices do not move enough to make trading during these times profitable. Binary options traders, on the other hand, can profit nicely from these slow moving and low volatility periods. The price stability found during slower trading periods creates an advantage for certain types of binary options trades. I want to take a minute to explain the best binary options to trade during these periods, as well as identifying when they occur.

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binary options

In almost every case the slowest trading is the overnight period when markets are closed. Naturally these time periods will vary depending on the country the markets trade in, but they can easily be determined in relation to your own time with just a small amount of research. In the case of stocks and indices, these markets are closed overnight and are not available to trade as binary options during the after hours period, but the hour just before market closing is often quiet, especially at the end of the week, and should be considered a good place to look for slow trading. Currencies also trade at their slowest during the European and North American overnight period.

In most cases, the boundary trade is considered to be an advanced and high risk type of trade, but slower trading periods can make this trade type attractive to aggressive traders. A boundary trade (also known as a straddle in traditional options trading), is when you make a trade that an asset won’t break through a predetermined high and low point. Volatility makes these types of trades dangerous, but during slow trading periods they can be an easy way to profit from the markets lack of volatility.

Another type of trade that works well in a slow trading environment is the no touch option. This type of trade specifies that an asset will not reach the set strike price prior to expiration. Volatility can make these trades risky, but in a slow trading period it is unlikely that an asset will suddenly spike or drop to hit the no touch price.

The most common binary options trade, the high/low trade, is typically dependent on a higher degree of volatility and is typically a bad choice for slow trading periods. While it is possible to make money with this type of trade during slow periods, they really require an active asset and are more suited to high volume and high volatility trading periods.

Knowing the proper type of trade to undertake during slow trading periods is the key to success. It will take experience to spot the most profitable opportunities, but it can be learned and is a lower stress way of using binary options to make money. You objective should always be to decrease risk while increasing profits, and slow trading periods give you the perfect way to do so.

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