Unlike regular options, there is no physical exchange where you can trade binary options. Trading in binary options is entirely virtual. Where can you trade binary options then? In this article, we explain where you can trade binary options, and also when you can trade in binary options on different products.
Where options are traded
There are various underlying assets with respect to binary options (what are binary options?): stocks, market indices, foreign currencies (forex), and commodities. All these products have their own stock exchange markets. Shares and indices are traded on the stock exchanges in London, New York, Frankfurt, etc. Forex is traded between large banks 'over the counter'. There are separate markets for commodities. But where can you get the binary options on these products?
Unlike 'regular' options, binary options are not offered on the options market. That's because the market for binary options is completely virtual. This market is specially created by 'binary options brokers'. This broker is a kind of bank, which brings together supply and demand. Binary options brokers operate through the internet, and so there is no real 'trading floor' where the options are traded.
When can you trade in binary options?
Obviously the market for binary options is opened 24 hours a day, seven days a week. You always have access to the trading software of your broker. That is not to say that you can always trade in all the options. Normally, options are only available if the underlying product is also traded. This is true for stocks on weekdays during opening hours of the market. However, please take note of quotations for shares listed on the stock exchange as different stock exchanges are located in different time zones. The same is true for indices.
Foreign currencies and commodities are basically traded 24 hours a day, 5 days a week. This is because there will always be big banks or trade offices open somewhere in the world. So while the pound is traded against the Dollar, among other things, in London, Frankfurt, New York, Sydney, Tokyo and Dubai, it can never happen (during the week)that all these exchanges are closed at the same time, because they are in different time zones that overlap each other a bit.
The picture above shows the times at which the markets are opened. As you can see it is almost always possible to trade somewhere in the world. Different underlying assets are more popular on different exchanges. Usually, it is only during the weekends that there is no trading in binary options.
What is the best broker to trade?
If you want to trade binary options, you always have to use a broker. There are several brokers, and it's important to choose a good broker with the right fit for your personal situation. Please read the article about binary option brokers to properly understand what a broker does.
Have you read the article and do you know what to look for when choosing a broker? Then take a look at our overview of binary options broker reviews. It contains a detailed discussion and comparison of all the important brokers. Using the reviews you can choose the perfect broker for your situation.
