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Time zones give you the opportunity to trade binary options whenever it is convenient for you. You can trade not only on weekdays but also on weekends.
There is a constant movement on the foreign exchange market. On Monday, at midnight by Moscow time, a new trading day begins in such big cities as Sydney and Wellington. The local currency exchanges start their work and the market is “launched”. At this time, you will see the first movements on your trading platform.
This trading session is called Pacific. First news on New Zealand is published, which makes it possible to trade currency pairs with the New Zealand dollar (NZD). Approximately at 00:30 the information on the USA may appear and the currency pairs with USD may be slightly declined.
This session, just like any other, lasts for nine hours. It’s the standard working day for the Exchange employees. However, you will not see much activity on your chart before 3 o’clock in the morning. It’s because most of the traders are still asleep.
When the Asian session begins, the currency pairs with the yen (JPY) and the Australian dollar (AUD) become active.
At about 2:50 by Moscow time the data on Japan appears, which can greatly change the rate of the pair USDJPY. The Central Bank of this country makes sure that its currency doesn’t cost too much or too little. Therefore the Bank can shift the rate by pouring additional volumes of currency into the market.
This process is called an intervention. It happens suddenly and can’t be planned. When it occurs you can see a long vertical line on the chart which shifts the price either up or down. Nevertheless, this time of the Asian session is considered quite calm and the market is waiting for Europe to wake up.
European and Russian sessions
At 9:00 by Moscow time, Frankfurt, Zurich, Paris, and London enter the game. Popular exchanges, investment funds and the largest banks begin their work resulting in a major activity. At 10:00 by Moscow, London institutions open and the news on the UK, Germany and the Eurozone is published. At this time British Pound (GBP), Swiss Franc (CHF), and Euro (EUR) experience the largest movements.
Also at 10:00 the Moscow Stock Exchange opens leading the ruble to the world stage. Until 18:00 by Moscow is the best time to trade USDRUB and EURRUB.
At 14:00 the stock exchanges have a lunch break, and the fluctuations on the charts become a bit calmer.
Beginning from 15:00 by Moscow, the market is preparing for the American session to open. At this time, the first data on the US may be published which will shift the currency pairs with the dollar.
The OLYMPTRADE website gives you the easiest way to follow the important events. There you can find not only a free economic calendar but also a weekly selection of the most significant news, which should be closely watched.
At 16:00 by Moscow, the stock exchanges of New York and Chicago officially begin to work, while the European exchanges continue to operate until 18:00, pushing their national currencies up and down. At this time, the EURUSD pair is probably better than others for fast and active earning on binary options.
At 16:30 by Moscow, the important news on the USA is published, which can easily change the chart. After that, starting from 18:00 by Moscow time, you can find a lot of important data on the United States.
Pairs with USD affect gold, so incoming news should not be ignored. For example, positive data on America can force the price on gold to descend for several hours in a row.
By midnight, the storm on the market subsides. And a new day of the Pacific session begins.
Time Sessions In Winter and Summer
Note that opening and closing hours of the sessions may vary depending on what time it is now – winter or summer. The time of the important economical news being released can also change. Generally, in the summer everything shifts back by one hour. For example, starting from the middle of the spring, you will see the important news on America not at 16:30, but at 15:30 by Moscow time.
Pacific session: 00:00 – 09:00 (in winter and summer)
Asian session: 03:00 – 12:00 (in winter and summer)
European session: 09:00 – 17:00 (in winter), 08:00 – 16:00 (in summer)
American session: 16:00 – 01:00 (in winter), 15:00 – 00:00 (in summer)
Features of the “Thin” Market
Also, you should introduce yourself to the concept of the “Thin market”. It’s the time when a few trading sessions overlap each other. When it happens you can see very strong and completely unpredictable price fluctuations.
Therefore, we recommend that beginners refrain from buying binary options within the following time periods:
In winter: 2:45 – 3:45; 8:45 – 9:15; 15:45 – 16:15
In summer: 2:45 – 3:45; 07:45 – 8:15; 14:45 – 15:15
Similar rapid price movements are also possible in the last two weeks of December, when large investment companies, funds and banks withdraw their funds from the market to calculate their profits and losses. After that, one by one, the exchanges leave for their Christmas holidays, and the activity for all currency pairs is gradually reduced.