Weekend trading with binary options allows traders to trade throughout the week. With Forex market trading hours lasting 24 hours a day, 6 days a week, and certain markets and indices open on Saturdays and Sundays, there are plenty of opportunities. This article explains the specifics of weekend trading and how to be successful in online trading on the weekend.

This article explores:

  • Trading on the weekend – benefits and drawbacks
  • Why trade on weekends – available markets and assets
  • Weekend Strategies – Specific Strategies and 3 Top Tips

With this information, you can be successful using binary options as a weekend option.

 

Deals on weekends

While most markets go to bed on Saturday morning, some open their weekend trading bright and early. From forex and futures to stocks and cryptocurrencies, many people are sleeping and drinking over two days of potential gains. So, on this page, we will look at all the pros and cons of daily trading over the weekend before covering strategies, trading hours and top tips.

Benefits

First, why trade your relaxed day for online trading on the weekend? It could possibly be for one of the following reasons:

  • Profit Potential – You have 2 more days to trade over the weekend. It takes 2 more days to earn more. If you haven’t had a good week, you can straighten out your account balance over the weekend.
  • Time – Trading on the weekend allows you to trade multiple currency pairs for example and has plenty of time to evaluate each trade. Best of all, you don’t have to rush a decision, but in a week you can inevitably try to enter and exit the market at a certain price point.
  • Strategy – Weekends when the markets are paused give you time to develop more complex trading strategies. Also, some trading plans perform better on weekends. For example, Asian markets often behave differently than Western markets on Saturdays and Sundays. As a result, certain strategies can generate greater returns during weekends and weekdays.
  • Indiscreet attention – Unsurprisingly, many people work 7 days a week. So finding the time to focus on trading is also not easy. That is why weekend trading offers a fantastic opportunity to focus solely on your trading activity. Additionally, there are fewer distractions, which can intensify your trading decisions.
  • Ready – Weekend trading can be more than just opening and closing positions. In-depth technical analysis can be done while most of the market is breathing. As a result, you can hone your strategy and be better prepared until the bell rings on Monday morning.

Cons

Despite the number of benefits, there are also downsides to daily deals on weekends.

  • Reduced Options – Fewer instruments available to trade on weekends. In particular, many stocks are not available. However, since the markets are open 24/7, currency weekend trading is readily available.
  • Weekend bias – Risk of weekend bias being on Mondays. For example, you may have adjusted your trading plan or are desperate to make up for losses. Mondays can be unprofitable if you’re not careful.
  • Decreased trading volume – You can still trade forex, oil and gold on weekends, but lower trading volumes can cause problems such as reduced ability to validate price movements. Also, lack of volume can lead to flat markets and unhelpful charts.
  • Limited Brokers – Many brokers do not offer deals on weekends. They simply don’t think they have the amount or interest they’re worth. So, if you are committed to a particular broker, you may not be able to trade unless you move elsewhere. Fortunately, IQ Option, 24option, eToro, FXCM and Nadex all facilitate weekend trading.
  • Trading Hours – Weekend trading may not be against your body clock. Middle Eastern markets, for example, are often active over the weekend. That said, if you live in the West, you may need to prepare your trades during anti-social times.
  • Liquidity – Markets are often illiquid unless money managers need to take on other aspects of their trades. Decreasing liquidity can increase volatility. There is a wider range of results between bid and ask. This can make monetization more difficult. However, high levels of volatility can also mean improved earnings potential.

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Why trade at weekends

Trading stocks and indices

Many traditional commodities and markets traded during the week are off the cards on the weekend. For example, NASDAQ and other US stock exchanges are closed from 16:00 Friday to 09:30 Monday. However, in the Middle East, weekdays run from Sunday to Thursday and Saturday to Wednesday.

Additionally, brokers and platforms in the currency and CFD markets offer a 7-day trading week and a range of local stocks and indices. Here are the indices that will give you the most daily trading volume over the weekend:

  • Tadawul Index – The Saudi Arabia Index represents the largest economy in the region. As a result, it is the most popular index for brokers offering weekend deals.
  • Tel Aviv 25 – Also known as TA25, it consists of 25 of Israel’s largest companies. People interested in the IT and pharmaceutical industries may be suitable.
  • DFM Index – Some of the most important players in the UAE can be found here.
  • Kuwait Stock Exchange – Kuwait’s economy is diverse. Hence, this stock exchange hosts companies in the finance, insurance and real estate sectors.

Now that Saudi Arabia has shifted a week to work with its neighbors, foreign traders have better access than ever. As they continue towards full access, liquidity will increase and weekend traders will benefit from greater profit potential.

However, the growth of traders operating on weekends has not gone unnoticed by brokers. Some now offer trading in traditionally closed markets. For example, IG provides access to Wall Street as well as FTSE and DAX indices over the weekend. The rules for stop losses, etc. are slightly changed (e.g. trading during the week is immune to anything that happens during the weekend). The trade shows an increase in the amount of business being done over the weekend by Cryptocurrencies such as Bitcoin and Ripple that are not limited by market hours.

Weekend trading opportunities will only increase as trader activity and volume increase.

Cryptocurrencies and binary options

Weekend trading in cryptocurrencies and options is also on the rise. Bitcoin and Litecoin are two popular digital currencies for which binary options are available. Since these are primarily Internet creations, they can be traded effectively 24/7.

The major currencies get most of the attention this week. Late on Friday, however, crypto options trading volumes began to spike.

Additionally, some binary options brokers offer certain weekend options that start on Friday at the close of trading in the US and last until the European open on Monday morning. These options are carefully designed to cover weekend events, including the release of economic data from China and the G-7 meeting.

Weekend Strategy

The first thing to note is that weekends affect your trading strategy. Major market players are offline, resulting in unusual dynamics over the weekend. As a result, volatility may spike and volume may decrease.

However, there are strategies developed specifically for trading on the weekend. The most effective and simplest setup methods are detailed below.

Trading the Weekend Gap

A gap is simply an increase in price. The price moves up or down as you skip levels in between. Intervals are usually the result of starting a new movement or accelerating a movement. However, this gap requires significant trading volume. However, this type of gap is usually not seen, as major market players are out of the game on the weekends. Instead, weekend deals focus on closing the gap.

The gap can be closed with only a few traders making it. For example, several people may invest in the same direction, whether accidentally or not. As a result, the market will rise or fall. Most traders are unsure of what is going on. They often end up thinking the price is too high or too low. So they try to profit from their obvious mistakes by trading in the opposite direction.

  • Upward intervals – Upward intervals can see traders selling a security. The market will fall and the gap will close.
  • Down Interval – A downward interval where traders buy, the market rises and the interval closes again.

Gaps are often closed on smaller markets such as 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 we know some key information. First, there is a price target because the market moves until the price reaches the initial candlestick level that constitutes the divergence. If there is a break up, it sinks to the height of the first candlestick.

You also know the expiry. Because we know that the market is ready to reach our target price within the next period. Therefore, high/low options are available. Alternatively, one-touch options can further increase your revenue.

You should also use options that expire shorter than a single period with a price target within the gap.

This is often thought of as a weekend weekend gap trading strategy. In practice, however, this technique can be used for both options and commodities.

Finally, take a look at our Weekend Gap deals with EAs (experts) to help you invest more. Based on predetermined criteria, this algorithm allows you to execute far more trades than you can manually.

Can I invest in other ways on the weekend?

If your trading week is long and you really want to break in and out, there are plenty of useful activities you can pursue on the weekend. Here are the best uses of your time.

  • Backtesting – historical price data can be used to simulate previous market environments to test potential strategies. It’s the perfect way to identify and fix problems before making plans for Monday morning.
  • Performance analysis – Figuring out moments to reflect during a busy trading week is often the hardest thing to say. That’s why the weekend is the perfect time to sit down and look at your journal and recent performance. Where did you go wrong this week? What would it take to change your current strategy? Have you let your emotions drive your decision-making process?
  • Risk Adjustment – A performance analysis can be performed to determine whether risk parameter adjustments are appropriate. For example, you can increase your risk tolerance and position size if your strategy produces more consistent returns.
  • Future Plans – Weekend deals may also consist of plans for next week. For example, are there events on the economic calendar that could affect stock trading? If so, plan to take advantage of price fluctuations. Benjamin Franklin argued, “If you don’t prepare, you prepare to fail.”
  • Education – Weekend deals can be immersed in educational resources. There are many courses, webinars, books, e-books, podcasts, and useful websites. Everyone can learn about a new strategy or use it to build on their market knowledge.

3 tips for weekend trading

Whether you’re interested in trading currencies, stocks, or futures weekends, there are many helpful tips to avoid the pitfalls and potentially boost your profits. These include:

1. Check the spread
Spreads often widen with reduced trading volume and liquidity, so finding a competitive broker is all the more important. In fact, spreads can be particularly large on closed and open trades on weekends due to low liquidity. So look for competitive spreads offered by brokers on weekends.

2. Overcome the slip
Liquidity is low and the possibility of a gap may slip in weekend trading. To work around this, use the Market Range or Max Deviation functions available on certain platforms such as MetaTrader.

This feature allows you to determine the maximum potential slippage you will allow. For example, if set to 0, there is no risk of slipping.

3. News
Weekday trading brings special trading behavior. Most of the volatility and activity will be driven by news releases. So stay up to date with all news events related to the market. Financial Juice, CNBC, and Yahoo Finance are all reasonable sources.

Conclusion

Although often overlooked, many opportunities remain for those looking to start day trading on the weekend. Forex and binary options are accessible Friday evening through Monday morning. Middle East markets also provide the volatility and volume needed to generate profits.

However, you will need to revise your general strategy or create a weekend-specific plan. Or, if you don’t really want to trade, you can use the weekend to reinforce your trading education and prepare for next week. There are courses available and all the materials described above.