Pair Options has become the new big investment tool when it comes to trading online. With so many former forex and binary options traders investing in Pair options, it is no wonder that Pair Options trading is really taking off. There are various reasons why traders have been attracted to investing in Pair Options. The fact that there are so many different strategies that you can attach to Pair Options trading is a big plus. What has happened in the past year is that word has gotten out that Pair Options trading is a great opportunity for ambitious investors to make consistent returns as opposed to binary options and forex. The following are just some of the strategies you can use while Pair Options trading:
Purchase a Fixed Pair Option
Fixed Pair Options are one of the two types (fixed and floating) of Pair Options. You may decide to purchase a Fixed Pair Option of Microsoft / Apple, as you view this as a stable and low risk trade. Pair Options trading platforms tend to offer returns of 80-90% when it comes to Fixed Pair Options. Just by picking one stock within the stock pair to be the better performer randomly gives you about a 50% chance of being right. However, if you incorporate the other factors, such as expiry time and knowledge of the markets into your Pair Options trading, then this will assist you in in your Pair Options trading experience.
Purchase a Floating Pair Option
The other type of Pair Option which you have the possibility of trading is a Floating Pair Option. A Floating Pair Option has a number of differences to Fixed Pair Options. One of them is that you can choose your risk level. This is as returns vary from 5-650% on the top Pair Options trading platforms. In addition, you have the opportunity of closing your Pair Option prior to its initial expiry, either to take profits or cut losses. Note that the varying return rates with Floating Pair Options are based on the amount of risk in the stock you choose in the stock pair. For example, if one stock in the pair is already by far in the money compared to the other stock, then the return rate and risk will be a lot lower.
Trade Fixed and Floating Pair Options
If you have a lot of confidence with Pair Options trading, you may want to simultaneously trade a Fixed Pair Option and a Floating Pair Option. This takes a lot of skill and concentration. The plus is that the return rates can be very high, adding much profit to your portfolio. This is a Pair Options trading strategy that is being used by more and more Pair Options traders these days.
In order to be a master at Pair Options trading, you will need to follow the market very closely. For example, if you know a lot about Google and Apple this will greatly assist you when trading the Google/Apple stock pair. This is a strategy that many Pair Options traders use, and is vital if you want to become a profitable Pair Options trader. Therefore, make sure that you follow the financial markets as much as you can.
The strategies discussed above are just a few of the many that you can use during your Pair Options trading experience. Some traders may prefer one strategy while another trader may prefer another – it all depends! What all Pair Options traders need to identify is that there are so many exciting ways to enjoy Pair Options trading!