Pair Options have become very famous in a short time period, despite their previous absence in the world of finance as a financial trading instrument. Much of the growing popularity of Pair Options is owed to an extraordinary revolution when it comes to trading financial products over the past decade. Prior to Pair Options trading, there was Pair trading, so for example, you would trade the Dow Jones (DJI) and S&P500 (GSPC) as a Pair trade. With the advancements of technology, Pair Options came into being – allowing you to trade by merely selecting the better performing stock in a stock pair.
From the onset of Pair Options in 2011, this new trading instrument has gained wide popularity. This is largely due to Pair Options being a market neutral instrument, immune from the market direction. In addition, the dynamics of how Pair Options trading platforms allow traders to trade their favorite stocks pairs has added to the excitement.
You can now trade Pair Options on over 100 stocks from global stock exchanges. Registering and opening a live account with a Pair Options broker is simple. The advanced trading software enables you to start Pair Options trading in minutes.
How to Get Started with Pair Options
Getting started with Pair Options trading is an exciting prospect. All you have to do is follow the simple steps below:
- Find a Pair Options Broker: There are a number of top notch Pair Options broker out there. Once you find the preferred broker, deposit funds to activate your trading account. This is the first step to trading with Pair Options.
- Select Your Pair Option: Trading Pair Options is based on choosing the desired stock in a stock pair. If you prefer the telecoms, then you may select AT&T within the AT&T / Verizon stock pair. Alternatively, you may prefer to trade in the clothing industry, thereby picking Abercrombie & Fitch to be the better performer in the Gap / Abercrombie &Fitch stock pair.
- Select the Expiry Time: Once you select which stock within the stock pair you expect to be the better performer, you will need to select the expiry time. Most Pair Options brokers have a great choice of expiry times, ranging from 1 hour to 6 months. Therefore, you will need to make sure you have a good idea of where the chosen stock is going by the chosen expiry time.
- The Desired Profits: You have chosen to trade Pair Options to make the desired profits. In the process, you will have to take other factors into account, such as the risk involved. The higher the risk, then the higher the returns. So whether you want to invest $100 or $10000 on a Pair option, it’s up to you. Just remember that there is a lot in Pair Options trading with return rates of as high as 700%.
- Learn While Trading: There is always more space for learning more about Pair Options trading. This will give you the advantage you need to stay on top of the world of Pair Options