The Pair option is a fairly recent binary option. The basic principle remains the same as the binary option as we know it. However, there are subtleties that make all the difference. It involves two underlying assets… Then discover everything you need to know about the Pair option
The principle of the Pair option
Like the classic “Up / Down” binary option, the Pair option involves guessing whether a value will go up or down. However, it is not a question of predicting the evolution of the value of a single asset. Rather, it is a question of guessing how the price of one asset will evolve relative to that of another asset: you must then choose the one that will outperform the other first after a certain delay. In other words, it is a matter of deciding which asset will perform best at maturity.
It should be noted that the transaction always remains “binary” as there are only one or two occurrences. There are then two possible outcomes: either the trader is right in his speculations and has chosen the asset that performs best, thus pocketing a gain; or he is wrong and suffers a loss.
Who is the Pair option for?
Due to its specific features, the Pair option is particularly suitable for beginner traders. Indeed, trading is quite simple to use and the steps to follow are easy to understand. For those starting out in the world of binary options, it is easier to choose between two assets than to analyze the possible evolution of a single asset. A broker like Stock Pair is specialized in trading even options. We invite you to join him if you are interested in this solution.
As for the actual earnings, they depend on a few parameters, including the nature of the option, but also the type of asset and market conditions.
Difference with the binary option
The difference between the classic binary option and the Pair option is not only in its operation. It is also necessary to take into account the gain to which the trader can claim. Sometimes it takes only a very small movement for a Pair option to be profitable. On the other hand, it is often necessary for the price movement to be significant for a trade to be successful. In any case, you should not go into trading in the Pair option blindly, even if the principle seems quite simple. It remains essential to be well informed and trained to optimize the chances of success.