Binary Options Weekend Trading

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Trading on the weekend gives you access to the cryptocurrency index markets and some currency pairs on Saturday and Sunday. It is available on the majority of the best binary brokers, but it is important to ensure the broker allows weekend trading.

You can trade on the weekends if your binary broker supports weekend trading. So, even though the majority of the market is taking a two-day break, some traders are up early to start day trading on the weekends with the active markets. Weekend trading typically involves currencies, futures, stocks, and cryptocurrencies, though this may differ between brokers.

However, depending on what you're looking to trade, it's essential to do your research before moving on with weekend trading. You must first ascertain which markets are open on the weekends, what can be traded there, and whether they are worthwhile.

However, it is best to consider what you can trade on weekends and the pros and cons of weekend trading before embarking on this venture. This article will provide traders with information about weekend trading.

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Can I trade binary options on weekends?

Yes. Traders can trade binary options on weekends, but the availability of weekend trading can vary depending on the broker and the specific assets they offer. Some brokers' options for weekend trading are better than their competitors. So, you must know the assets your brokers are offering.

Weekend trading may have some restrictions because some Forex and stocks may not be active, but it is still profitable. Even though liquidity may be less than it is during the weekdays, some Forex pairs might still be accessible for trading on the weekends. The most widely used weekend trading options assets are:

Cryptocurrency indices
OTC currency charts (for example, EUR/USD OTC)

Note that OTC currency charts often experience unexpected movements despite being less volatile. Again, the trading hours for some stock market indices and commodities like gold, silver, and oil may extend to the weekends. Also, some exotic indices from the Arabic world are available to trade, and some brokers create unique binary options contracts designed specifically for weekend trading. These may be based on a variety of underlying assets.

When trading binary options on the weekends, remember that a trader's intuition, market analysis, and trading strategies should be the main factors. Therefore, the time the trader chooses to open a position may not matter; what matters is whether the assets are rising or falling, even by a few pips.

Weekend trading pros and cons

It is no longer news that weekend trading is now a part of the trading industry. It is another top advancement in the trading industry, as individuals can trade some Forex pairs and cryptocurrencies on Saturdays and Sundays. It is a major breakthrough for traders looking to diversify their portfolios and increase profit potential after regular weekday market hours.

Weekend trading has its ups and downs, so be sure you understand your risks before you trade. Below is a discussion of weekend trading's advantages and disadvantages.

1. Weekend trading offers traders an opportunity to generate more earnings
Trading over the weekend gives investors the chance to benefit from market changes when regular markets are closed. For some traders, the two extra trading days before the regular market days resume are profitable. It is a way that many traders who had a bad trading week use to restore their account balance, even though you need a top strategy to profit from trades.
2. Weekend trading gives traders the luxury of assessing trades
While some weekend binary options brokers provide access to several markets, traders benefit from more time to analyze these trades. Unlike if you were frantically trying to enter and exit the market at specific price points throughout the week, traders are not under any pressure to move quickly.
3. It creates a calm environment for traders to develop winning trading strategies
Due to the rush, the volume of trades and weekday market volatility may prevent traders from creating flexible strategies. However, the slower pace of weekend trading gives traders more time to develop more sophisticated trading strategies.
4. Weekend trading gives traders the time to focus
Weekday obligations and workloads may prevent some traders from concentrating on the trading markets. However, since weekends are off days from work, traders have more time to focus solely on their trading activities. Having fewer distractions may help traders make better trade decisions and reduce mistakes.
5. Trading on weekends helps prepare the trader for the market when it gets busy from Sunday evening
Trading over the weekend gives investors time to conduct in-depth technical analysis while the majority of the markets are resting. As a result, by the time the normal trading starting bell sounds on Sunday evening or Monday morning, depending on the trading session, you will have polished your strategy and be better organized.
6. Portfolio Diversification
Investors can diversify their portfolios over the weekend by trading several assets from different markets. Trading professionals can more effectively manage risk and possibly increase returns by spreading their investments across various instruments.

1. Limited trading options
On weekends, there are few instruments accessible for trading. Since trading takes place from Monday to Friday, many stocks will be out of stock, and the currency market will become boring.
2. Weekend trading can impact your typical weekday trades
The strategies that traders use on the weekends are developed based on the state of the market. Some traders still appear to have these instincts when the routine trading days return. Trading with a similar strategy used over the weekend might impact positions you open on regular trading days.
3. Low trading volume and liquidity
The trading volume decreases because many assets are unavailable on weekends, which can result in flat market charts. Issues could arise from the low trading volume, such as a reduced ability to confirm price changes.

Again, less trading activity during the weekend widens spreads, which could result in slippage.

Weekend trading strategy for binary options

Because of the varying activities in the trading market during weekend trading, you may have to use a different strategy. Because the major market participants are offline on weekends, unusual trends can affect trading strategies.

However, trading techniques are tailored specifically for the weekend, when volatility spikes and trading volume declines. An example is "Trading the Weekend Gap".

The weekend gap strategy relies on comparing a currency's price on Friday to its opening price on Sunday to predict whether its price will increase or decrease when the market reopens after the weekend. A "gap" is said to have occurred when the opening price for trading resumes significantly differs from Friday's closing price. Additionally, there are two types of gaps: upward and downward gaps.

Upwards gap : When the opening price of a security (like a stock, commodity, or currency) is higher than the day's closing price, this is known as an upward gap. Thus, the price chart makes it easy to see the difference between the previous day's closing price and the current day's opening price. Traders will sell their securities if there is an upward gap
Downward gap : When a security's opening price, such as a stock, commodity, or currency, is less than its closing price from the previous day, this is referred to as a "price gap”. Traders will buy in response to a downward gap, pushing the market higher and restoring the gap's closure

Due to the low trading volume on weekends, this strategy is best used during those times. Knowing when a gap will close gives you all the knowledge you need to trade a binary option with a high payout.

Implementing the weekend gap strategy

Closing gaps, or the differences between Friday's closing price and Sunday's opening price, is the main goal of this strategy. Two strategies for trading the weekend gap are used for this.

The first is a trader placing orders to enter trades to fill the gap
The second approach involves a trader making trades to capitalize on further gap movement

To trade the weekend gap, traders must first pinpoint the price difference that was present at the start of the weekend trading session. Opening positions as soon as the market is open and relying on a price reversal to close the gap.

To implement this strategy, a trader has to verify if a gap exists; if it does, the trader must place a trade in the direction, either upward or downward.

It might be necessary to implement a straightforward risk management plan. Advanced traders will employ trailing stops to lower risk and search for chances to increase profits should the market move back toward Friday's close.

You must carefully monitor the trade after you place it. The weekend gap strategy is typically applied over shorter time frames to capitalize on the initial gap movement. Analyzing previous gap behavior can offer information about possible trading opportunities.

Note:

Trading gaps can be risky because not all gaps will be filled or last forever. It is crucial to approach this strategy cautiously, practice sound risk management, and be aware of the possibility of significant price fluctuations.

Top tips for trading with binary options on weekends

Trading binary options based on currencies and commodities over the weekend is a fantastic opportunity for traders who prefer to follow trends they identify on Friday. Applying appropriate risk management strategies, such as setting take-profit and stop-loss levels and limiting the number of trades you place over the weekend, will help you avoid overtrading and potential losses. Also, be aware of possible price discrepancies that might appear once the market reopens following the weekend.

The following are additional tips for trading foreign exchange over the weekend:

1. Examining the spreads

It is important to check spreads when trading binary options on weekends. The closing and opening of trading on weekends can result in wider spreads because spreads frequently widen due to declining trading volume and liquidity. So, on weekends, brokers offering competitive spreads are preferable.

2. Dealing with slippage

Slippage might occur due to a lack of liquidity and the risk of gaps during the weekend. The primary variables influencing slippage are an asset's volatility, liquidity, and number of buyers and sellers. Use the maximum deviation or market range options offered on some platforms, including MetaTrader. Set your slippage tolerance before trading assets, or trade with reputable no-slippage brokers if you prefer.

3. Utilizing the news

Unusual trading patterns are evident during weekend trading. The release of new information will spark a lot of activity and volatility. Keep up with any significant news events that are occurring in your market as a result. Good information sources include CNBC, Yahoo Finance, and Financial Juice.

Top binary options brokers

Pocket Option

Pocket Option Review

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PocketOption is a binary options trader and Forex broker that has been operating since 2017. The company is regulated by FMRRC. PocketOption offers traders over 100 trading instruments, including currency pairs, commodities, stocks, cryptocurrencies, and CFDs.

Clients of this broker note the high amount of income, the convenience of the trading platform, and the instant withdrawal of funds to e-wallets. A feature of the PocketOption terminal is the presence of a wide variety of boosters that expand trading opportunities, thereby increasing the chance of making a profit.

As of 2023, the size of payments in PocketOption reaches 89% of the bet. Not only independent but also social trading is available. The broker credits a welcome bonus of 50% of the initial deposit, provides various promotional codes and cashback up to 10%. Potential clients can practice trading options or Forex on demo accounts with virtual currency.

QUOTEX

QUOTEX Review

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Quotex is an online broker offering binary and digital asset trading run by Awesomo LTD, based in Seychelles. It was formed in 2019 and is accessible in different countries worldwide. With easy processes, the platform allows traders to deal with various trading assets, such as cryptocurrency and indices and provides multiple banking options.

You'll receive 24/7 customer care and can use the platform for as low as $10. Your account is also secured with two-step authentication.

QUOTEX provides traders with over 40 trading instruments. Users can trade 23 currency pairs, 14 Indices, cryptocurrency and stock.

Binary.com

Binary.com Review

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The Binary broker is a subsidiary of the Regen Markets Group, founded over 20 years ago. Binary is the oldest binary broker in the Forex market and is controlled by five international regulators, including the MFSA and SVG FSA. As of 2023, Binary conducts more than 1 million transactions per day, the company is widely recognized for the fastest speed of all types of transactions. It has two of its trading terminals and also allows traders to trade through MT5.

Binary.com offers a wide range of features, including Forex trading, commodities, crypto trading, and more. What makes Binary.com stand out is that you can get started with a minimum deposit of just $5. This broker also provides an automated trading system that helps you to make profitable trades with minimal effort.

IQcent

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IQcent is the premier online trading platform for retail clients looking to make a mark in the investing world. IQcent offers binary options and Contract for Difference (CFD) trading opportunities across several asset classes, such as Forex, stocks, commodities, and cryptocurrencies. The minimum trade size is just 0.01 USD/EUR, and traders can leverage up to 1:500 with CFDs.

In addition to various financial instruments, IQcent also provides an extensive suite of payment methods with more than 10 supported options. The minimum deposit amount may vary depending on the type of account but goes from as low as $10 to $250 and $1,000. However, traders can't deposit lower than (USD/EUR) 5,000 for direct bank transfers.

IQcent offers an intuitive and useful proprietary web-based trading platform with several in-built indicators essential for making informed trading decisions, including momentum, relative strength, and average range. Depending on your needs and preferences, IQcent offers three types of binary options: turbo options, intraday options, and long-term options.

Binarium

Binarium Review

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Established in 2012, Binarium is a binary options broker that provides services to international clients. The platform's creators ensured that it was simple to use to allow novice traders a smooth experience.

Binarium head offices are situated in Saint Vincent and the Grenadines. It's ideal for beginners who wish to develop their trading careers, starting with binary options that are easier to master than foreign exchange.

The broker also uses European banks to hold the client's funds, meaning they are separate from the broker account.

Summary

A trader capable of profiting from Monday through Friday can also profit on Saturday and Sunday. Weekend trading has created exciting new opportunities for traders and investors who want to broaden their horizons and profit from changes in the global market. Top binary brokers provide a user-friendly platform, a wide selection of trading options, and a useful weekend trading option. Traders can take advantage of weekend trading to increase their financial portfolios and unlock profit potential by staying informed, using efficient strategies, and managing risk responsibly.

FAQs

Can I trade options on the weekend?

Yes. You can trade binary options on weekends using brokers that offer weekend trading.

Are binary options 7 days a week?

Yes. Binary trading is available seven days a week, but you may have to confirm if the broker supports week trading since not all brokers include this feature.

What are the disadvantages of weekend trading?

Some of the biggest drawbacks of weekend trading include wider spreads, reduced liquidity, and rising transaction costs. Additionally, because there are fewer market participants, there is more volatility, which causes larger price fluctuations. Weekend trading is only available during certain hours, and some brokers may impose higher spreads or commissions.

Is weekend trading good for beginners?

No. The types of markets that may be best for newcomers are closed, and those that are open for weekend trading may have higher trading risks and higher trading costs.

Team that worked on the article

Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.

Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.

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Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Deviation

The deviation is a statistical measure of how much a set of data varies from the mean or average value. In forex trading, this measure is often calculated using standard deviation that helps traders in assessing the degree of variability or volatility in currency price movements.

Leverage

Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.

Index

Index in trading is the measure of the performance of a group of stocks, which can include the assets and securities in it.

Extra

Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.

MFSA

MFSA was established on 23 July 2002. MFSA comprises a group of government and non-government regulators that license and control brokers and their financial activities.

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