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Weekend trading with binary options allows traders to trade seven days a week. With forex markets trading hours spanning around the clock for 6 days a week, and certain markets and indices open across Saturday and Sunday – there are plenty of opportunities. This article explains the details of weekend trading and how you can succeed in trading online at the weekend.
This article explores :
- Trading On The Weekend – Benefits And Drawbacks
- Why Trade At Weekends – Available Markets And Assets
- Weekend Strategy – Specific Strategies And 3 Top Tips
With this information, you will be able to succeed at weekend trading with binary options.
Trading On The Weekend
While much of the market is in bed on Saturday morning, some are up bright and early to begin weekend day trading. From forex and futures to stocks and cryptocurrency, many are simply sleeping and drinking their way through two days of potential profits. So, this page will examine both the advantages and disadvantages of day trading over the weekend, before covering strategies, trading hours, plus top tips.
Firstly, why should you swap a relaxing day out for trading online over the weekend? Perhaps for any of the following reasons:
- Profit potential – You have two extra days to trade during the weekend. That’s two additional days to generate more earnings. If you’ve not had such a good week, the weekend gives you an opportunity to rectify your account balance.
- Time – Trading on the weekend allows you to trade multiple currency pairs, for example, and still have plenty of time to evaluate each trade. On top of that, you don’t have to rush decisions, whereas in the week you may desperately be trying to get in and out of the market at certain price points.
- Strategies – During the weekend when the markets are on pause, you have the time to develop more complex trading strategies. In addition, some trading plans will perform better on the weekend. For example, the Asian markets often behave differently to Western markets on Saturday and Sunday. As a result, certain strategies could generate greater profits at the weekend vs in the week.
- Undivided attention – Understandably, many people work throughout the week. Therefore, finding the time to concentrate on trading too can be a challenge. This is why weekend trading gives you a fantastic opportunity to focus solely on your trade activity. On top of that, fewer distractions could result in enhanced trade decisions.
- Preparation – Weekend trading can be more than just entering and exiting positions. While most of the markets take a breath, you can conduct in-depth technical analysis. As a result, you could hone your strategy and be better prepared by the time the opening bell rings on Monday morning.
Despite the number of benefits, there are also certain downsides to day trading at the weekend:
- Reduced options – There are fewer instruments available for trading at the weekends. Many stocks, in particular, will be unavailable. However, currency weekend trading is readily available as the markets run 24/7.
- Weekend bias – There is also a danger of carrying a weekend bias with you into Monday. For example, you may have tweaked your trading plan or be desperate to make up for a loss. If you’re not careful, this can result in an unprofitable Monday.
- Reduced volume – Despite forex, oil and gold trading still being available at the weekend, the low trading volume can lead to problems, such as a reduced ability to validate price shifts. Furthermore, a lack of volume can lead to flat markets and unhelpful charts.
- Limited brokers – Many brokers do not offer trading over the weekend. They feel there simply isn’t the volume or interest to make it worth their while. So, if you’re committed to a specific broker, you may be unable to trade unless you go elsewhere. Fortunately, IQ Option, 24option, FXCM, and Nadex all facilitate weekend day trading.
- Trading hours – Weekend day trading may not suit your body clock. Middle Eastern markets, for example, are often active over the weekend. This means if you’re based in the West, you may have to be prepared to trade during anti-social hours.
- Liquidity – Without money managers to take the other side of trades, markets are often less liquid. Reduced liquidity can then lead to an increase in volatility. The result of which is wider spreads between bid and ask. This can make generating profits even more challenging. Having said that, high levels of volatility can also mean enhanced profit potential.
Leading Weekend Brokers
Why Trade At Weekends?
Trading Stocks And Indices
Many of the traditional instruments and markets you trade in during the week will be off the cards at the weekend. For example, the NASDAQ and other US stock exchanges are closed from Friday 16:00 to Monday 09:30. However, the Middle East has weekdays running from Sunday to Thursday and Saturday to Wednesday.
In addition, brokers and platforms in the currency and CFD markets are offering seven day trading weeks and a range of local stocks and indices. Some of the indices which will provide the most volume for day trading in the weekends are:
- Tadawul Index – The Saudi Arabian index represents the largest economy in the region. As a result, this is the most popular index found amongst brokers offering weekend trading.
- Tel Aviv 25 – Also known as the TA25, it is formed of the 25 largest Israeli companies. Those interested in the IT and pharmaceutical industries could be well suited.
- DFM Index – Some of the most significant players in the United Arab Emirates can be found here.
- Kuwait Stock Exchange – The Kuwait economy is diverse. Therefore, this stock exchange hosts companies from the financial, insurance, and real estate sectors.
Now that Saudi Arabia has moved its workweek to align with neighbours, foreign traders now have better access than ever before. As they continue moving towards full access, liquidity will increase and weekend traders will benefit from greater profit potential.
The growth in traders operating at the weekend has not gone unnoticed by brokers however. Some now offer trading on markets that are traditionally closed. IG for example, now offer access to the FTSE and DAX indices, as well as Wall Street, over the weekend. The rules around stop losses etc change slightly (week day trades are unaffected by anything that happens over the weekend for example). The move illustrates the growing amount of business done over the weekend – driven in a large part, by Cryptocurrencies such as Bitcoin and Ripple which are not restricted by market hours.
Opportunities for weekend trading are only likely to increase as trader activity and trading volume grow.
Cryptocurrencies & Binary Options
Weekend trading in cryptocurrencies and options is also on the rise. Bitcoin and Litecoin are just two popular digital currencies that have binary options offered for them. Because they are predominantly an Internet creation, they can be effectively traded 24/7.
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In the week the major currencies receive the majority of the attention. But by late Friday trading volume in cryptocurrency options begins to surge.
On top of that, some binary options brokers provide specific weekend options that start on Friday at the end of US trading and last until Europe’s opening on Monday morning. These options have even been carefully engineered to cover weekend events, including economic data releases from China and G-7 meetings.
The first thing to note is yes, the weekends do effect trading strategies. Major market players are offline, leading to unusual dynamics over the weekend. As a result, volatility can spike and volume can diminish.
Fortunately, however, there are strategies that have been specifically developed for trading on the weekends. Below one of the most effective and straightforward to set up has been detailed.
Trading the Weekend Gap
Gaps are simply price jumps. Something causes the price to shift either up or down while skipping the levels in between. Usually, gaps are a result of beginning new movements or accelerating movements. However, these gaps require significant trading volume. But due to major market participants being out of the game on the weekend, you don’t normally see these type of gaps. Instead, weekend trading focuses on closing gaps.
Gaps can close when just a few traders create them. For example, several people may invest in the same direction, whether it’s by accident or not. As a result, the market will rise or fall. Most traders will then be unsure what is going on. Often they end up thinking the price has gone too high or too low. So, they try to profit from the apparent mistake by trading in the opposite direction.
- Upwards gap – An upwards gap will see traders sell their securities. The market will then drop and the gap should close.
- Downwards gap – In a downwards gap, traders will buy, the market will rise and again the gap will be closed.
Gaps often close in low-volume markets, such as the weekends. This makes weekend gap trading an ideal strategy.
Armed with the knowledge the gap will close, you can now capitalise on market conditions. This is because you also know several key bits of information. Firstly, you have your price target, because the market will move until the price hits the level of the initial candlestick that makes up the gap. If an upwards gap, it will sink to the high of your first candlestick.
You also know the expiry. This is because you know the market is poised to hit the target price within the next period. Therefore, you can use a high/low option. Alternatively, a one-touch option may increase your returns further.
Also note, ensure you use an option with a price target inside the gap, plus an expiry shorter than a single period.
This is often thought of as a forex weekend gap trading strategy. But in actual fact, this technique can be used with both options and commodities too.
Finally, you may be able to increase your takings by exploring weekend gap trading with expert advisors (EA). Following pre-determined criteria, these algorithms allow you to execute far more trades than you ever could manually.
How Else Can You Capitalise on the Weekends?
If you’ve had a long trading week and you want a break from actually entering and exiting positions, there is a whole host of useful activities you can pursue on the weekends. Some of the best uses of time include:
- Back-testing – Using historical price data, you can simulate previous market environments to test a potential strategy. This is the perfect way to identify and remedy any problems before you put your plan into action on Monday morning.
- Performance analysis – Getting a moment to reflect in the middle of a busy trading week is often challenging to say the least. That’s why the weekends are a perfect time to sit down and go through your trade journal and recent performance. Where did you go wrong this week? What changes do you need to make to your current strategy? Did you let emotions drive your decision-making process?
- Risk adjustments – By conducting performance analysis, you can decide whether adjusting your risk parameters is sensible. For example, if your strategy is generating more consistent profits, perhaps you can increase your risk tolerance and position size.
- Future planning – Weekend trading can also consist of planning for the upcoming week. For example, is there any events coming up in your economic calendar that may impact share trading? If so, have a plan in place to capitalise on the price fluctuations they will trigger. As Benjamin Franklin asserted, “by failing to prepare, you are preparing to fail”.
- Education – Weekend day trading can also consist of immersing yourself in educational resources. There are now courses, webinars, books, ebooks, podcasts, as well as a host of useful websites available. All can be used to learn about a new strategy or build on your market knowledge.
3 Top Tips for Weekend Trading
Whether you’re interested in currency, stocks or futures weekend trading, there are a number of useful tips that can help you avoid pitfalls and potentially increase profits. These include:
1. Check Spreads
Because spreads often widen as a result of reduced trading volume and liquidity, finding a competitive broker is even more important. In fact, spreads can be particularly large at the close and open of trading on weekends, due to low liquidity. So, look for broker’s offering competitive spreads at weekends.
2. Tackling Slippage
Low liquidity and the possibility of gaps during weekend trading can lead to slippage. To combat this problem, use market range or maximum deviation features available on certain platforms, such as MetaTrader.
These features enable you to decide on a maximum potential slippage that you are willing to concede. Set it to zero, for example, and you won’t have to suffer any slippage.
3. Utilise the News
Weekend day trading brings with it unusual trading behaviour. Much of the volatility and activity will be driven by news announcements. So, stay up to date with any news events relevant to your market. Financial Juice, CNBC, and Yahoo Finance are all sensible sources.
Although often overlooked, there remain plenty of opportunities for those looking to start day trading at the weekends. Forex and binary options are both accessible from Friday evening to Monday Morning. In addition, markets in the Middle East offer the volatility and volume needed to generate earnings.
However, you will need to amend your normal strategy or employ a weekend-specific plan. Alternatively, if you don’t want to actually trade, you can use the weekends to further your trade education and prepare for the upcoming week. There are courses available, plus all of the resources outlined above.
Trading on Saturday and Sunday? Weekend Binary Options Cover Them All
Some binary options brokers have been offering trading on weekends for more than two years, targeting and even creating a
Weekends have been sacred for many decades in the financial world. Whether it is a natural disaster, a terrorist attack or any other game-changing event, as far as the markets were concerned it could wait till Monday.
But with the increasing pace of globalization, markets outside of the Tokyo-London-New York frame have grown in influence, importance and access. The binary options industry has been on the forefront of taking advantage of this diversification and given the nature of the trading instruments they offer, they’ve managed to carve out a new niche.
The prime example for this comes from countries in the Middle East that have weekdays running from Sunday to Thursday and Saturday to Wednesday. Brokers and platform providers in the forex space have also been seeking to seize opportunities in these markets by offering swap-free accounts, seven days trading week and a batch of local stocks and indices.
The largest and most commonly traded indices of this sort are:
Tadawul Index – the Saudi Arabian index, representing the largest economy in the area is found in the largest number of brokers offering weekend trading.
Tel Aviv 25 – commonly referred to as TA25, it covers the 25 largest Israeli companies. It is the only exchange in the country and represents some quite interesting names from a country with dynamic IT and pharmaceutical industries.
DFM Index – among the major regional exchanges, it has some of the largest players in the United Arab Emirates.
Kuwait Stock Exchange – Kuwait has a relatively diverse economy and its stock exchange has companies from the financial, real estate and insurance sectors.
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Saudi Arabia has shifted its workweek to be in sync with its neighbors providing better access for more regional and international investors and traders. They are also making steps toward full access for foreign investors in the local exchange and economy, which will make it more liquid.
Cryptocurrencies and Weekend Options
Cryptocurrencies such as Bitcoin and Litecoin also have binary options offered for them, as they are effectively traded 24/7, being largely an Internet creation. While quite understandably they are overshadowed by the major currency pairs during the week, they do receive their fair share of attention come late Friday.
Some binary providers also offer so-called weekend options that start at the end of US trading on Friday and last until Monday morning’s open in Europe.
These were designed specifically to cover events that happened on weekends, such as economic data coming out of China and political events that have an impact on markets, such as G-7 meetings or similar. With regular binary options and Touch/No Touch ones, it was a mainstay of the weekend offering, but is rarely found today.
Long-term options are almost universally present on binary broker websites. Although the least exciting, they do allow a certain detachment from the humdrum of daily news and emotions and can provide a good entry point for monthly, quarterly or similar trades.
The weekend variety of binary options has managed to develop its own specific set of fans, either traders with other full-time jobs or those who actually prefer the markets on offer.
The above mentioned indices have their own dynamic of news events and sources, albeit being largely influenced by the major ones, and the newer Bitcoin and its siblings still representing an exciting challenge and opportunity, regardless of the smaller volume over Saturday and Sunday. Weekend binary options are definitely something that many traders have noticed, but either find them too exotic, or simply prefer to trade more liquid markets that they know more about.
With so many possibilities for development, anyone who manages to capture the imagination of the people within the target group, will also be able to expand and profit from it.
Trading on the Weekend
When trading in the options arena, traders have the opportunity to profit a great deal – and for those who trade binary options, the ability to transact trades both during the week and on weekends can add an additional amount of profit potential.
Although investors can typically place their intended trades over the weekend through a traditional stock brokerage firm, these “after hours” trades will not actually be executed until trading has resumed on the following business day.
There are a number of binary options brokers that are open for weekend trading. In most cases, these platforms will typically allow trading of Above Below and/or Up Down binaries that have expiries of 30 or 60 minutes. Other binary option brokers may sell touch binary options that have an expiry on the following Friday within a specific time period during the weekend.
By far the best choice for weekend trading is IQ Option. It’s not only the largest and most reliable broker today, it also offers an innovative over the counter (OTC) trading opportunity. There’s no better way to trade on weekends than this.
If you’re still not familiar with these terms and are not sure what options there are and how to trade with them you should take a look at our terms and explanations article. There you’ll find everything you need to know to understand everything in this article.
While binary option traders can choose their underlying stocks from the securities exchanges that are open for trading on the weekend, these traders may also find many companies that are listed on these markets for underlying assets on the binary options contracts that are offered by binary options brokers.
Why Trade Binary Options on the Weekend?
One of the biggest advantages to trading in binary options is that traders can place buy and sell transactions on the weekends when most other worldwide investment markets are closed. In so doing, binary option traders may have the opportunity to make a nice profit within a short period of time when trading options with 30 or 60 minute expiries over the weekend.
Where Can Binary Options Trades Take Place on the Weekend?
Unlike the U.S. exchanges, there are certain securities exchanges across the globe that are open during weekend days. For example, in the Middle East, the trading week will typically run from Sunday through Thursday in some areas and from Saturday through Wednesday in others. This allows binary options traders to actively enter and exit their trades when the underlying assets that are associated with these trades are listed on a market that is open.
Some of the major exchanges that are open for trading on the weekends include:
- DFM Index – This index is based on the Dubai stock exchange, one of the major exchanges that is located in the United Arab Emirates.
- Tel Aviv 25 Index – The Tel Aviv 25 Index is composed of the top 25 companies – based on their market capitalization – in the Tel Aviv Exchange. This exchange is the only market that is available for trading securities in Israel.
- Kuwait Stock Exchange – The Kuwait Stock Exchange represents the stock index for the national Kuwaiti stock exchange that is inclusive of investment companies, banks, real estate, and insurance companies located in Kuwait.
- Tadawul Index – This exchange is the only stock exchange that is located in Saudi Arabia.
As with trading binary options at any other time of the week, it is similarly important to monitor any news or events that may affect the price of an option’s underlying asset prior to placing a trade. This may help a trader to more accurately predict whether the price of the underlying asset will rise or fall.
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