Tag: Pairs

Binary Options Pairs Trading | Asset Comparison Predictions

Binary Options Pairs Trading | Asset Comparison Predictions

Binary Option Pairs Trading a new addition to the Binary Option Platforms offered by few brokers is just an innovative initiative to offer a different trading experience for traders. Though it’s hard to find this option on all brokers because it’s relatively new when a trader finds it can make use of it.
In this type of trade the trader will be will not be choosing the direction of an asset instead the trader will be comparing two assets and then make a prediction based on his research which asset will outperform the other in the given pair within the specified time frame. This is very interesting and competitive because if your favourite brand is doing well you are always happy.
The asset comparison and predictions are always made on the most popular and top assets usually the big names in the industry like Google, Apple, Microsoft, Facebook and many more. Some Binary Options brokers platforms also match up commodities with trades like Gold vs Silver and so on, the commodity trading is becoming very popular in the recent times.
Even though the outcome is the same binary options results of trading either In the Money or Out Of the Money, it is comfortable trading, brand names related and the top-notch commodities doing well in the market.
There are a number of innovations in binary options trading that no longer simply make it about trading a single underlying asset higher or lower. Conventional binary options are making way for new ways to trade which are as straightforward but potentially much more rewarding. For those with some market knowledge and insight in to the short-term direction of price, features such as ‘range options’ as well as One Touch allows traders to use this knowledge to spot profitable opportunities.
Unlike regular trading instruments, with Pairs Trading you need to predict the relative performances of two underlying assets, as opposed to the price direction of one asset. This significantly simplifies the trading process and profits are earned so.
Floating pairs, however, can run on for weeks or months and traders can cash-out of these options early. They are priced based on the starts of the chosen times period, such as the beginning of a given day, unlike Fixed Pairs which measure performance from the moment that the trade is opened. For this reason, it is not uncommon to see highly divergent pairs offering huge profits of up to 500% to those traders who back the underperforming asset within the pairs.

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