Binary Options Trading During The Holiday Season
Holidays are not usually the best time for binary options trading due to the low volatility they have to offer. However, considering the fact that there are too many bank and exchange holidays in a year, there are only a few full weeks that you will actually get to trade in. While some people prefer to stay on the sidelines during the holiday season, jumping in the market only on full weeks, others deem it imperative to take their chances on trading during the holiday season. If you too are one of the traders who enjoy earning during the holiday season, the following guide will help you out.
The Market Trend During The Holiday Season
In the binary trading market, it is a well-known fact that trends are repeated during the year in a specific pattern based on traders’ behavior. During holidays, the volume in the market is down as most of the traders take time off from their busy schedules away from work. As a result, the price changes at this time are really negligible and the market movements are extremely low. Unless some major and unusual event occur, the prices remain static during the entire holiday period, making it easier for traders to understand the market trends and predict market prices. So while the market is static, you usually have a higher chance of making profit during this season.
The Alarming Presence of Trading Sharks
During the low market trading volumes, the presence of trading sharks in the market is the biggest problem holiday-season traders have to deal with. The lower trading volumes make it much easier for traders to manipulate the market momentum as they can trade in large volume scales and bring a movement in assets’ prices. They usually gain this power over the market due to the large investments they are willing to make. This makes it slightly riskier to trade during the holiday season as the market can suddenly move into an unexpected direction due to deliberate manipulation.
More Profitable Trading
Despite all the risks, you can reap great rewards if you decide to trade during the holiday season and get lucky in the end. During the holiday season, your broker might offer you various rewards and bonuses on trading and on other aspects of your transactions. Moreover, since you have ample knowledge on market movements, you can end up with more profits by making wise trading decisions.
So if you are planning to trade during the holiday season, you definitely have the chance to gain a lot of profit provided that you watch the market trends carefully and keep your eyes open for the trading sharks roaming in the market.