The concept of binary option and pair option trading is simple. In binary option, you invest in one asset and predict whether its price will move up or down. In pair option, you examine the relative positions of two assets and try to predict which will perform better.
These two assets have historically performed together — perhaps they are the same industry or catering to the same market. Though it is very simple, you still require well designed strategies in order to consistently make a profit. These are Stockpair Strategies that you can use.
Some of the Stockpair Strategies can be followed by everybody while others may require some advanced tools. The trading coaches at Stockpair are always ready to advise you with the choice of the correct strategy.
StockPair Strategy Some important Stockpair Strategies The concept of binary option and pair option trading is simple. Different types of Stockpair strategies Here is a short overview of the different types of Stockpair Strategies: This is definitely the best if you are a newcomer in the market and just learning the ropes. You choose one asset about which you know something and concentrate all your efforts on studying the market for that asset.
Alternatively, you can concentrate your attention on a single market about which you have an idea and invest in assets traded in that market. This strategy will help to narrow your focus and the chances of your profitability improve drastically.
Another common Stockpair Strategy for binary options trading is commonly defined as sitting on the fence strategy. It should be adopted when you are not sure how the assets will perform in the market. So, you choose both the call and the put option at different expiry so that you will make profit at least in one trade. You can also trade in pair option with Stockpair where you invest on the comparative performance of a pair of assets.
There are definite strategies to invest in pair options also. One such Stockpair Strategy for pair option is known as co integration strategy. This is best applicable for pairs whose prices have historically moved apart and then come together in a definite cycle. So, if you find a gap between two such asset prices, you can place your trade in such a way which predicts that this gap will close.
This Stockpair Strategy is profitable for assets which almost always perform together. Another Stockpair Strategy for pair option is the support and resistance strategy. In a pair of option, if one asset faces resistance and the other does not, the latter will perform better; similarly, if one finds some support and the other does not, the former will perform better. Stockpair provides advanced charting software to study these lines of support and resistance in the market. Choose the best Stockpair Strategy to earn high profits Some of the Stockpair Strategies can be followed by everybody while others may require some advanced tools.More...