Here’s the scoop on after-hours trading. It used to be the territory of the big players—those institutional traders—but with technology getting better, regular folks like us can join in too. Most brokers today offer access to after-hours trading, but let me tell you, the rules can vary a lot based on who you choose to work with.
Now, let’s chat about binary options trading. It’s definitely a solid opportunity. Can’t manage the day shift? No worries. The night shift is prime time for those of us who take advantage of the comprehensive pocketoption trading strategies offered by this broker to earn some cash.
So, why are we hustling at night, you ask? The short answer is that it’s all about the lower volatility. After-hours trades often happen at our desired price or better. During the day? Sure, there’s more liquidity, especially around market open and close, but for night owls like me, the peace and quiet is a welcome change.
Just like New York, the binary options market is always open. We're talking 24/7 action worldwide, starting at 5 p.m. EST on Sunday and going non-stop until 4 p.m. EST on Friday. With all those different time zones, we can trade around the clock. But trading at night has its own vibe compared to trading during the day, so let’s break down the pros and cons.
What You Should Know About Night Binary Options Trading
First off, when I say night (after-hours) trading, I mean that sweet window of four hours from 4 p.m. to 8 p.m. Eastern—the American session just closed, and the Pacific and Asian ones are still in motion. And during these after-hours, we’re trading through Electronic Communications Networks (ECNs).
These ECNs are our link to buy and sell stocks while avoiding the usual daytime market players. When I place a trade, it zips through the ECN, waiting for someone to jump in. It’s like a dance: sellers wait for buyers, and buyers wait for sellers. When the timing lines up, boom—the orders are executed through the ECN.
But when it comes to binary options, it’s a bit different. The key is predicting the price direction, so no need to stress over exact points.
Overall, if I'm trading Euro/Dollar currency pairs, the night volatility is usually about 3 to 4 times lighter than during the day. We’re avoiding those sharp spikes and trend reversals, so it’s all about choosing the right tools and cashing in on profits.
Before jumping in, let’s get the workspace set up, and then we’ll discuss strategy and tools.
- First up, for night trading, I’ll definitely want a Japanese Candlestick or Bars chart—gotta choose the one that fits my style best.
- When it comes to assets, I’d focus on those that are active during the European or American sessions: currency pairs with the euro or dollar, steering clear of Asian currencies.
- For my timeframe, I’m going with M5—within just a couple of hours, I can fit in a handful of profitable trades.
Alright, let’s get trading!
How to Trade Electronic Contracts at Night
When I'm looking to buy options, I need an indicator to show me the price channel. Nighttime volatility is lower, so I can expect the trend to hold a bit longer.
Most traders, including me, find the Bollinger Bands super useful for this. I’m aiming to trade off the channel borders—when the price bounces off the lower line of the indicator, it’s a CALL option kind of night, and when it rebounds off the upper line, I’m going for a PUT. Average moving is off the table for this technique.
Given the ultra-low volatility, I’m setting the indicator period to 15 and the deviation to 2. Let’s keep it simple.
To avoid that annoying market noise, I’ll set the expiration time for at least three candles. Gives me a nice cushion.
Wrapping it up, I can say that for night trading, any trend indicator can work instead of Bollinger. Even a simple Moving Average can bring in the money when trading on rebounds. Pocket Option Broker is my go-to for a solid selection of tools for fellow night traders.
