Weekend trading with binary options allows traders to trade all week. There are many opportunities because the forex market trading hours are 24 hours a day, six days a week and certain markets and indices are open on Saturdays and Sundays. This article explains in detail about weekend trading and how to be successful in weekend trading online.
This article explores:
- Weekend trading – Advantages and disadvantages
- Reason to trade over the weekend – markets and assets available
- Weekend Strategy – Specific Strategy and 3 Key Tips
With this information, you can successfully use binary options as a weekend option.
Trading on the weekend
Most markets go to bed on Saturday morning, but some markets light up and start trading on the weekend. From forex and futures to stocks and cryptocurrencies, many people sleep and drink through two days of potential profits. So on this page we will be looking at all the advantages and disadvantages of day trading over the weekend before we cover strategies, trading timing and key tips.
Grace
First, why should you change your relaxation day to online trading at the weekend? Probably one of the following reasons:
- Profit Potential – There are two more days to trade at the end of the week. It took two more days to earn more. If you haven’t seen a good week yet, you can correct your account balance by the end of the week.
- Time – Weekend trading allows you to trade multiple currency pairs, for example, and you have enough time to evaluate each trade. Best of all, you don’t have to make a decision, but in a week you can certainly try to enter and exit the market at a certain price.
- Strategies – At the end of the week when the market is suspended, you have time to develop more complex trading strategies. Also, some trading plans perform better on weekends. For example, Asian markets often behave differently from Western markets on Saturdays and Sundays. As a result, certain strategies can generate greater revenue on weekends and on weekdays.
- Unreasonable attention – of course many people work all week. Therefore, finding time to focus on trading is not easy. That is why weekend trading offers a great opportunity to focus on your trading activities. Additionally, fewer distractions can reinforce trading decisions.
- Weekend trading can be more than just the start and end of a position. In-depth technical analysis can be done while most markets breathe. As a result, you can hone your strategy and be better prepared until the bell rings Monday morning.
Cons
Despite the number of benefits, there are also disadvantages to day trading on weekends.
- Discounted options for weekend trading. Especially many stocks are not available. However, the market is open 24/7 so you can easily take advantage of weekend currency trading.
- Weekend Trends – There is a risk that the weekend bias will be on Monday. For example, you may have adjusted your trading plan or are desperate to make up for a loss. If you are not careful, your profits may decrease on Monday.
- Lower volume – You can still trade forex, oil and gold over the weekend, but low volume can cause problems such as poor ability to verify price movements. Also, lack of volume can lead to charts where the market is flat and unhelpful.
- Limited Brokers – Many brokers do not offer weekend trading. They simply don’t think they have a worthwhile amount or benefit. Therefore, if you are for a particular broker, you may not be able to trade unless you move elsewhere. Fortunately, IQ options, 24 options, eToro, FXCM and Nadex all facilitate weekend trading.
- Trading Hours – Weekend trading may not fit your body clock. The Middle East market, for example, usually operates on weekends. In other words, if you live in the West, you may need to prepare for a deal during semi-social times.
- Liquidity – The market is usually less liquid if the fund manager doesn’t need to do other aspects of trading. As liquidity decreases, volatility can increase. The results between bids and requests are broader. This can make revenue harder. However, high volatility can also mean increased revenue potential.
Best Weekend Broker
Why trade on weekends
Trading stocks and indices
Many commodities and markets traditionally traded during the week are excluded from the card on weekends. For example, the NASDAQ and other US stock exchanges are closed from 16:00 Friday to 09:30 Monday. In the Middle East, however, weekdays operate from Sunday to Thursday and Saturday to Wednesday.
In addition, currency and CFD brokers and platforms offer seven trading days and a wide range of local stocks and indices. The index that will provide the most daily trading volume over the weekend is:
- Tadawul Index – The Saudi Arabia Index represents the largest economy in the region. Therefore, it is the most popular indicator for brokers that offer weekend deals.
- Tel Aviv 25 – Also known as TA25, the company consists of 25 of Israel’s largest companies. Those interested in the IT and pharmaceutical industries may be a good fit.
- DFM Index – Some of the most important players in the UAE can be found here.
- Kuwait Stock Exchange – Kuwait’s economy is very diverse. Therefore, this stock exchange organizes companies in the financial, insurance and real estate sectors.
As Saudi Arabia has moved a week to work with neighboring countries, foreign traders now have a better approach than ever before. As they move towards a full approach, liquidity increases and weekend traders will benefit from greater profit potential.
However, the growth of traders that run into the weekend goes unnoticed by the brokers. Some now offer trading in the traditionally closed markets. For example, IG provides access to Wall Street as well as the FTSE and DAX indices over the weekend. The rules like stop loss are slightly changed (for example, trading during the week is not affected by everything that happens over the weekend). This transaction shows an increase in the amount of business done over the weekend by cryptocurrencies like Bitcoin and Ripple, not limited by market timing.
Weekend trading opportunities will increase as trading activity and trading volume increase.
Cryptocurrencies and binary options
Weekend deals of cryptocurrencies and options are also on the rise. Bitcoin and Litecoin are two popular digital currencies that come with binary options. Since these are mainly Internet creations, they can be effectively traded 24/7.
This week, the currencies received the most attention. But late on Friday, crypto options volume started to skyrocket.
Additionally, some binary options brokers offer certain weekend options starting on Friday at the close of US trading and continuing until Monday morning Europe opens. These options are carefully designed to cover weekend events, including the presentation of economic data from China and the G-7 summit.
Weekend strategy
The first thing to note is that the weekend affects the trading strategy. Major market players are offline, so unusual moves happen over the weekend. As a result, volatility may increase and volume may decrease.
But there are strategies developed specifically for weekend trading. The simplest and most effective setup method is described in detail below.
Weekend arbitrage
The gap is simply bullish. Meanwhile, the price moves up or down while skipping the levels. Generally, the period is the result of starting a new movement or speeding up the movement. However, these gaps require significant trading volume. However, these gaps are often not seen as the main market participants were out of the game over the weekend. Instead, weekend trading focuses on closing the gap.
Gaps can be closed by executing only a few traders. For example, many people may invest in the same direction, whether unintentionally or not. As a result, the market will either 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 benefit from obvious mistakes by trading in the opposite direction.
- Upward Gap – Upward Gap allows you to see traders selling securities. The market will fall and the gap will close.
- Down Time – Traders buy, go down, and close for a down period.
Gaps are usually closed in small markets like weekends. This makes weekend gap trading an ideal strategy.
Strategy implementation
Armed with the knowledge that the gap will close, you can now take advantage of market conditions. Because I know some key information. First, there is a price target because the market moves until the price reaches the level of the original candle that makes up the difference. If there is a gap up, sink to the height of the first candle.
You also know expiration. Because we know that the market is ready to hit the target price in the next period. So high/low options are available. Or you can increase your revenue even more with one-touch options.
You should also use an expiration option shorter than a period with price targets in the distance.
This is often considered a weekend gap trading strategy. But in practice, this technique can be used for both options and commodities.
Finally, if you look at the weekend gap agreement with the EA (expert), you can invest more. Based on predetermined criteria, this algorithm allows you to make more trades than you can do manually.
Can I invest differently over the weekend?< /h3>
If the trading week is long and you really want to stop getting in and out, there are plenty of useful activities you can pursue over the weekend. The best use of time is:
- Backtest – You can test past strategies by simulating previous market conditions using past price data. It’s the perfect way to identify and solve problems before planning Monday morning.
- Performance Analysis – Identifying reflective moments during busy trading days is often the hardest word. That’s why the weekend is the perfect time to sit back and check out your recent magazine and gig. Where did this week go wrong? What do I need to change my current strategy? Do emotions drive decision making?
- Risk Adjustment – You can perform performance analysis to determine if risk parameter adjustment is appropriate. For example, if your strategy generates more consistent revenue, you can increase your risk tolerance and position size.
- Future Plans – Weekend deals may include plans for next week. For example, are there any events in the economic calendar that could affect stock trading? If so, plan to take advantage of price changes. Benjamin Franklin Quote: “If you’re not ready, you’re preparing to fail.”
- Training – Weekend deals can be immersed in educational resources. There are many useful courses, webinars, books, ebooks, podcasts, and websites. You can learn all about new strategies or use them based on market knowledge.
3 tips for weekend trading
Even if you are interested in trading currencies, stocks or futures over the weekend, there are many useful tips to avoid the pitfalls and potentially increase your profits. This includes:
1. Check
Spread spreads are often spread due to reduced trading volume and liquidity, so finding a competitive broker is even more important. Indeedy, due to low liquidity, spreads can be especially large for open and close trades at the end of the week. So look for competitive spreads that brokers offer on weekends.
2. Fixing Bar Slippage
low accounts and the possibility of losses in weekend trading. To work around this problem, use the market range or maximum deviation feature available on certain platforms, such as MetaTrader.
This feature allows you to define the maximum potential slip you will allow. For example, if you set it to 0, there is no fear of slipping.
3. News
Trading Week A day that offers exceptional trading behavior. Most volatility and activity will be driven by news announcements. So stay up to date with all market related news events. Juice Juice, CNBC, and Yahoo Finance are all reasonable sources.
Conclusion
Although often overlooked, there are plenty of opportunities left for those who want to start a daily trade over the weekend. Forex and binary options are accessible from Friday night to Monday morning. The Middle East market also provides the volatility and volume needed to generate revenue.
However, it is necessary to revise the overall strategy or weekend planning. Or if you don’t really want to trade, you can use the weekends to enhance your trade training and prepare for the coming week. There are courses available and all the materials described above