What Are Pair Options?
Pair options trading is a relatively new form of financial trading. They are similar to regular binary options in that they have the same binary, or all or nothing outcome, as well as a fixed return.
The main advantage of pair options over typical binary options is that they focus on the relative performance of two different assets as opposed to the price increase or decrease of a particular asset. In other words, even if the asset you chose in the pair option trade decreased in value during the given time period, if it decreased less than its paired asset, you have still won the trade.
The market-neutral aspect of pair options is what makes them so unique. In contrast to other forms of financial trading, pair options trading is the only kind that is not affected by the market at large. Whether the market is moving upward or downward, volatile or flat, the pair option trade is unaffected. Instead of needing to determine which direction the market will move in before executing your trade, you merely need to select which asset in a pair of assets will outperform the other by a particular expiry time. Thus, the element of market direction and volatility is removed from your trading decisions, and only the relative performance of the two assets is important.
Where to Trade Pair Options
Until recently, StockPair has been the only binary options platform to offer pair options trading. They have been operating since 2010 and offer both pair options as well as standard call/put binary options. They provide a unique platform with detailed long range charts and a simple user friendly interface. They are also the only broker to provide long term binary options of up to 150 days. In the coming days we will be preparing a comprehensive review of StockPair. In the interim, to check out the StockPair trading platform Click Here.
SpotOption has been working to add a Pair options feature to their trading platform. Currently TradeRush has already integrated the option pair feature into their trading screen menu.
We are told that at any moment option pair trading will be fully operational at TradeRush. As soon as the feature is live we will be presenting a detailed review.