StockPair offers a great selection of versatile binary option types that can help any trader be successful. This article lets you know exactly which StockPair options you can trade if you sign up.
Which StockPair options are you offered?
StockPair offers two kinds of binary option, high / low options and pair options.
High / low options
High / low options are the classic binary option type. To win a high / low option, you need to predict whether the underlying asset will rise or fall over a given period of time. When your prediction is correct, you get a payout of up to 85%. When your prediction is wrong, you lose the invested amount.
Additionally, StockPair offers you a cash back of up to 3% depending on your account type that increases your payout on winning trades and limits your losses on loosing trades.
The StockPair options offers a few unique options regarding the expiration time of your high / low option. While most other brokers restrict their high / low options to very short expiration times of one hour or shorter, StockPair offers end of day and end of week expiration times. Additionally, you can let your option expire 14, 30, 90, and 150 days from now.
These expiration times allow traders to be more flexible and employ more long-lasting trading strategies. Critics often claim that binary options focus on too short time frames for them to create valid predictions. Now, with StockPair’s 150 days expiration time, even long-term traders can use the advantages of binary options.
In addition to high / low options, StockPair offers pair options. With pair options, you do not invest in the performance of one asset, but the performance of two assets in relation to each other. You have to predict which asset will outperform the other over a given period of time.
This period of time is the current day, week, or month. Even if you invest after the trading day, week, or month has already begun, you have to predict which asset will perform better over the entire period. Since the market will have moved quite a bit in the current period, both assets of a pair have usually already performed differently, with one asset being ahead of the other.
This, of course, is reflected in the payout: Depending on its lead, the front runner will get a lower payout, sometimes as low as 25% or even lower, while the underdog can easily get a payout of up to 200%.
As a result of these different payout, pair options give traders the chance to employ very different trading techniques, from very secure techniques with a lower payout (by betting on the front runner) to riskier techniques (by betting on the underdog).