Forex Trading Hours – The Busiest and Slowest Times to Trade

Forex trading success doesn’t solely rely on the best forex trading system.  You also have to know when is the best time to take a trade.  You have to know what forex trading hours are the busiest and which are the slowest.

The trading hours in which the market is most active is definitely when European and American markets are both open and overlap one another.  This time is from 13:00 to 16:00 UTC or 8.00 to 11.00 EST.  If you are looking for liquidity and volatility in the market, this is definitely your peak hours.

This is when most short-term traders or scalpers of the forex market, enter and exit their trades.  There is enough volume on the market, there is enough news, and frankly there are enough traders to really move the market in a strong manner.  Almost all the big moves occur during these hours.  This is because the US and UK markets account for more than 50% of all the transactions in the market.

The slowest periods in the market are naturally after the European and American markets are closed and before the Asian and Australian markets are open. Asian markets are open 8 pm EST and the Australian markets are open at 7pm EST.

So from when the markets are closed in the US from 4:00 pm EST to the Asian markets opening at 8:00 pm EST, the market is very slow.  This could be good time to enter if you are more of a position trader, who wants to trade then market from a longer time perspective.

Do People Make a Living Off of Trading Binary Option Stocks?

What are Binary Options?

You might be wondering what are Binary Options all about? This is a new trading vehicle that gives ordinary investors access to profits of up to 95% in less than one hour. If you’re an investor you might have come across the terminology or even heard people around you talk about Binary options. They are becoming popular among investors and they are utilizing this financial instrument to gain profits that can range from 70% to as much as 95% in a very short period of time.

Many people are attracted to Binary Options because it is easy to manage and all the trader really has to do is make a good prediction regarding the direction of a particular asset in the stock market. The trader must predict if a price of a particular currency, stock, index, or commodity will either go up or down within an allotted time. If the trader’s predictions based on your analysis are correct, they will obtain a good return on investment in a very short period of time. Keep in mind that traders also have the option to choose from either 60 second, hourly expiration, daily, or weekly expiration time frames.

How to Trade Binary Options

You don’t have to be really good in math in able to invest in Binary Options since this type of investment only requires you to make few simple decisions. So you might be wondering how to trade Binary Options? You must first choose an underlying asset that you’re very familiar with. Such asset might include commodity, currency pair, stock, or even an entire index. Once you’ve chosen the asset you want to invest on, you must carefully predict the price movement of those particular assets and determine if they will either go up or down upon expiration. As it was mentioned before, the Binary Options time frame can be as short as one hour or it can be as long as one month.

And when both the assets and the time frame have been picked, you can invest as little as $30 or as much as $3000 on that particular asset. And if your predictions are mostly correct you will receive as much as 81 percent guaranteed profit, and thus increase your financial standing.

Binary Option Strategy

If you’ve just recently started using this trading vehicle as a financial tool hoping to increase your financial standing you might want to establish some good strategies before committing to it completely. A basic Binary Option Strategy to is required not only to correctly predict the movement of prices of a particular asset but also understanding money management. A trader must choose some assets that they are fairly familiar with and have a clear understanding of its behavior on the regular basis. A trader who knows the assets will most likely predict the direction of their price correctly. It is suggested to learn as much information about the asset of interest before investing on them so that they will be able to predict the price outcome during trading days.

Besides, having the knowledge about the history, background, and the different sectors of the company will only increase the trader’s chance of predicting the direction of the price on hourly, daily, and monthly trading. Another Binary Option Strategy that traders can rely on are charts and graphs in which they can use to study the behavior of the market and price changes from previous weeks, months and years.

Last but not least, to get a better understanding of the market’s behavior on the regular basis many traders and investors use multimedia outlets such as newspapers, radio, television and websites like Financial Times, CNN Money, Yahoo Finance. These financial news and various outlets broadcast information that are useful and enable traders to make good predictions on how the market will behave on any given day and use those current knowledge when investing on Binary Options.

Commodity Trading – Advantages and Disadvantages

What Is Commodity Trading?

Commodity futures markets allow commercial producers and commercial consumers to offset the risk of adverse future price movements in the commodities that they are selling or buying.

In order to work a futures contract must be standardised. They must have a standard size and grade, expire on a certain date and have a preset tick size. For example, corn futures trading at the Chicago Board of Trade are for 5000 bushels with a minimum tick size of 1/4cent/bushel ($12.50/contract).

A farmer may have a field of corn and in order to hedge against the possibility of corn prices dropping before the harvest he might sell corn futures. He has locked in the current price, if corn prices fall he makes a profit from the futures contracts to offset the loss on the actual corn. On the other hand, a consumer such as Kellogg may buy corn futures in order to protect against a rise in the cost of corn.

In order to facilitate a liquid market so that producers and consumers can freely buy and sell contracts , exchanges encourage speculators. The speculators objective is to make a profit from taking on the risk of price fluctuation that the commercial users do not want. The rewards for speculators can be very large precisely because there is a substantial risk of loss.

Advantages of commodity trading

Leverage. Commodity futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account.

Commission Costs. It is a lot cheaper to buy/sell one futures contract than to buy/sell the underlying instrument. For example, one full size S&P500 contract is currently worth in excess off $250,000 and could be bought/sold for as little as $20. The expense of buying/selling $250,000 could be $2,500+.

Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini’s tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread.

Ability to go short. Futures contracts can be sold as easily as they are bought enabling a speculator to profit from falling markets as well as rising ones. There is no ‘uptick rule’ for example like there is with stocks.

No ‘Time Decay’. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Commodity futures do not suffer from this as they are not anticipating a particular strike price at expiry.

Disadvantages of commodity trading

Leverage. Can be a double edged sword. Low margin requirements can encourage poor money management, leading to excessive risk taking. Not only are profits enhanced but so are losses!

Speed of trading. Traditionally commodities are pit traded and in order to trade a speculator would need to contact a broker by telephone to place the order who then transmits that order to the pit to be executed. Once the trade is filled the pit trader informs the broker who then then informs his client. This can take some take and the risk of slippage occurring can be high. Online futures trading can help to reduce this time by providing the client with a direct link to an electronic exchange.

You might find a truck of corn on your doorstep! Actually, most futures contracts are not deliverable and are cash settled at expiry. However some, like corn, are deliverable although you will get plenty of warning and opportunity to close out a position before the truck turns up.

Oil and Gas Working Interest Explained

Most people are confused by what is a working interest of an oil and lease. It reality, it is not that complicated.

The easiest way to explain it is this: In every business there are expenses and there is income. The working interest is the ownership of the expenses. It is often abbreviated as WI in oil and gas documents.

Thus, if you own 50% working interest; it means you must pay 50% of the bills that are due for that lease. So if you own 10% WI, you pay 10% of all bills.

The first question newbies ask is “Why in the world would you want ownership in expenses?” Which is a reasonable question. The answer is quite simple – it is because the working interest owners are also entitled to a percentage of the income, called net revenue interest.

The net revenue interest is the income, the working interest is the expenses. To make this quickly apparent, I want to present a normal oil and gas lease. One landowner, one oil company. The landowner owns the mineral rights and signs a lease that gives him a 20% royalty. The oil company drills and finds oil and produces it.

The landowner owns 20% of the net revenue interest, so he receives 20% of the revenues.The oil company owns 100% of the WI, thus pays for 100% of all expenses. However, the oil company only has 80% of the net revenue interest.

If the oil company sells 50% of their WI, then they still own 50% of the WI, and 40% net revenue interest.

Bear in mind, the royalty owners net revenue interest will never change due to anything that the working interest owner does.

What Is Bitcoin and the Blockchain and Why It Is Important to Invest Now

There is increasingly growing interest and buzz around bitcoin these days. You may have heard of it before or not. Either way, it is a multi-trillion-dollar financial industry that is practically flying under the radar of most people (only about 2% of the population is even aware of its existence), which makes it a prime time to get positioned before it hits the mainstream. And the time is now because cryptocurrency awareness is going viral. Even some universities are teaching classes on bitcoin, cryptocurrencies and blockchain technology!

What is Bitcoin Exactly?

Bitcoin is a digital currency (or digital money), that is electronically held, which means it is not tangible like fiat currency (dollars, euros, yen, etc.). It was created cryptographically, and thus it is a cryptocurrency. It runs on open-source software and it is not controlled by entities. It is decentralized and not governed by banks or government.

What is the Blockchain?

Blockchain technology is where bitcoin and other cryptocurrencies exist. The blockchain is also used for other applications other than cryptocurrencies, such as running smart contracts, for example. In a nutshell, the blockchain is a digital ledger that is decentralized. It stores records of all transactions that occur within it and is run by a peer-to-peer network. This means that individuals and businesses use it to transfer digital assets to each other via the Internet with no third party (i.e., banks, governments) needed.

The Importance Blockchain Technology and Investing in It

From a business perspective, blockchain technology can improve business processes and significantly lower costs. It will also allow businesses to offer more benefits of service to customers. For instance, financial institutions could use blockchain technology to improve processes for things such as settlements and insurance.

From an individual perspective, blockchain technology offers opportunities for significantly high returns on cryptocurrency investment as compared to traditional investments.

Blochchain technology and cryptocurrencies are quickly proving to be an inevitable part of the future of money and finances in the global economy. It is something that will soon become mainstream in the world financial market, and those who invest early as early adopters of this amazing innovative technology will be among the newest millionaires in the coming years and beyond.

We are in the third big wave of the Internet. The first being websites and domain names (dotcom boom), the second being social media (dating sites, Twitter, Facebook, YouTube, etc.), and the third blockchain technology, bitcoin and other cryptocurrencies. It’s a great time to get positioned.