How to use the Kiko option of StockPair?

StockPair is one of the best known and most popular online brokers. This broker is one of the few operators who have developed their own technology and stands out from the crowd

With a strong financial health, this operator employs an army of engineers who do everything possible to optimize its platform. Among their achievements, we find the KIKO option, a customized version of binary options. How does it work?

Presentation of the KIKO option

The KIKO option is in addition to the two main options available on StockPair: on the one hand, the classic option (High/Low) and, on the other hand, the even option. This new variant of the binary option is revisited in the StockPair sauce (note that this is an exclusive option in France). KIKO is the abbreviation for “Knock in, Knock out”, an option with a yield of around 82%. Its particularity lies in the absence of maturity: it is a binary option that has no maturity. So how does it work?

How the KIKO option works

With the KIKO option, each underlying asset is associated with 2 limits: increase and decrease. When a position is opened, the price of an asset is halfway between the two. The investor must then decide which limit the value of the asset will go first. As long as there is no deadline, it is possible to keep the position open as much as you wish. But of course it is still possible to close it after only a few seconds: the end of the option rings as soon as one of the limits is reached. If the trader has aimed correctly, the KIKO option is Knock in, otherwise it is Knock Out.

kiko option

KIKO option: modulate the expiration

It should be noted that the KIKO option can be used in two ways. On the one hand, there is the basic method, which simply consists in choosing the limit towards which the value of an asset will go. On the other hand, the trader has the possibility to choose the 2 limits. In particular, StockPair offers the possibility to choose between a short zone (with 2 close limits) and an extended zone (with 2 far limits), which has an impact on the expiration of the option.

In practice, this means

Here’s how it works in practice: the first thing to do is to choose the asset to trade. The investor must then choose the interval (between a lower and upper limit). He will decide if he chooses a short or longer area. Then choose “high” if you think the asset value will reach the high threshold first or “low” if you think it will first reach the low threshold.

In order for traders to master the use of the KIKO option, StockPair provides them with assistance through various indicators.