Trading Binary Options on the Weekends: Risks, Gains, and Strategies

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Trading Binary Options on the Weekends: Risks, Gains, and Strategies

Posted on by John Thiel

What are some of the advantages of trading binary options over the weekend? First of all the flexibility it allows you to have is unparalleled. For example, what if you want to focus doing research on stock performance and improving your trading tools and charting on Thursday? Will this have to come on account of the days that are actually available for trading?

Not really! These days you don’t have to worry much about missing a trading day on account of research having to be done. In other words, you have the option of just getting more done! And that’s always good news.

Weekend trading allows you to focus on a wider spectrum of markets, and as a result your investment portfolio will be more diversified and your risk levels reduced.

Cool, but How is This Even Possible?

It’s possible because some binary brokers will let you trade “all-or-nothing” digital options on stock options and on certain indices available for trading during Saturdays as well as Sundays. This has to do with the weekly work schedule implemented in each country. For example in the Tel Aviv Stock Exchange the work days are Sunday – Thursday. The trading rooms can be very actively engaged in trading activity on Sunday because it’s the first day of the week. In other countries trading is only available from Saturday to Wednesday.

The following is partial break down breakdown of indices that are open for trading and operate during the weekends:

  • The EGX 30 Index: The Egyptian index is available for trading on Sunday, although activity has dropped due to recent political upheaval in Egypt.
  • The Tadawul Index: The Saudi Stock Exchange widely know for influencing oil prices has over 140 listings of publicly traded companies.
  • The Tel Aviv 25 Index (TA25) : Located in the Ramat Gan Bursa area, the tel Aviv 25 Index is the only index allowed by the Israel Securities Exchange to be publicly traded.
  • The Kuwaiti Stock Exchange Index (KSEIDX): A local powerhouse in the Middle Eastern trading arena. Considered to be influential in oil and financial stocks.
  • The DFM Index: The Dubai Stock Exchange is another leader in markets trading considered to be influential in Middle Eastern as well as Asian Corporate Stock and of course in the Oil and Petroleum stocks.

OK, I got you thinking… But what now?

First of all you have to find the best binary options broker and maybe open a demo account to practice or simulate trading just so you get a feel for the software and the support staff in the trading room. Some brokers will offer weekend bonuses exclusively available for trading on Sundays. I recommend you check this out.

OptionXP Binary Options Broker - has an extensive reviews section including recommended and trusted brokers. I highly suggest going through the reviews section since I have personally traded with each one of these brokers and have experienced the software, the service, and the trading features on a first hand basis.

Secondly, taking this into account one has to ask! Do some indices perform better over the weekend? The answer is simple – do the research. Do a long term comparative analysis and see for yourself. If you are lazy and want the short answer its no, or not really. There are so many factors influencing global markets that it really doesn’t matter. However, since most global markets are closed on Sundays, the general volume of trades executed on that day will tend to be lower since there is so much economic inter-dependency between the markets.

Furthermore, weekend trading also means that when you execute trades on weekends some of the information won’t be available to you. This also means you will not be able to do your technical analysis when the news and international data flow is fresh and new. There is an added element of risk in this context.

To summarize, trading binary options during the weekend is a great way to diversify your trading portfolio and reduce your levels of risk. It also provides an additional avenue to make money trading the indices and opens you up to global markets where the trading days vary. Choosing the right binary options broker and conducting effective research will be crucial when formulating your trading strategy. Remember to follow the news and look for the right entry and/or exit signals.


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