Binary Options Trading vs Pair Options Trading
You now have the ability to start trading with Pair Options via the trading platform of your choice. The growing popularity of this new type of investment has led to debate about the benefits of Pair Options over binary options. Both of these categories of trading offer a lot to traders, therefore it is necessary to compare them to see what Pair options and binary options have to offer financial market traders. The spread of Internet technology has made binary options quite accessible to traders in the past decade. This same technology has been used by many of these same traders to start getting involved with Pair Options.
Binary Options are simple to trade, but still present the trader with complicated terminology, such as Call, Put, In, Out. The profitability rate is known from the outset, which is an advantage, ranging between 61-85%. One of the biggest benefits with trading binary options is that some binary options brokers will refund you up to 15% of the original investment if your trade expires out of the money. A simple aspect of binary options and Pair Options trading is that the trade only has to go a fraction in your favor and you are in the money. This aspect alone has brought much investment to the world of binary options.
Now many binary options brokers allow traders to trade on the weekends, letting them trade outside regular market hours. This is something that is absent with Pair Options trading at the moment. Weekend trading, also known as One Touch, allows investors to trade on the indexes, such as the level FTSE 100 will expire at the end of the next trading week. Those of you that are familiar with binary options already know that they are traded on forex, commodities, indexes and stocks. This provides the trader with a lot of choice while trading the markets throughout the trading week.
Pair Options trading is a more recent phenomenon than binary options. Pair Options have become quite popular today mainly due to being accessible to beginners, intermediate traders and professionals. Just like with binary options, there are numerous expiry times and assets to choose. These include, hourly, daily, weekly, monthly – your choice! Both types of investments protect you from leverage and allow you to trade from $10. An aspect of Pair Options that needs to improve is that if you are out of the money at expiry you receive no returns. However, this is compensated by the fact that the returns with Pair options are as high as 700% if your trade expires in the money.
At the moment, you can only trade Pair Options on stocks during British, American and European trading hours. This is set to change once the Pair Options brokers out there think of new ways to penetrate the financial markets. With the ability to trade Pair Options on the leading stock pairs, such as Microsoft / Apple while only having to predict which stock will be the better performer at expiry, this has brought a number of traders from binary options to Pair Options trading. Additionally, with the ability to close your position prior to expiry and with the absence of trading commissions whatsoever, these two factors are something that many binary options brokers fail to provide.