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.