What is a Pair Option?
A Pair Option is a type of option contract with fixed payout. At the time of expiry you receive a predetermined payout.
What is an Underlying Asset?
The underlying asset is the relative performance of the 2 underlying stocks in a stock pair.
What is the Asset Choice?
There are numerous stock pairs that you can trade online with Pair Options brokers.
What is a Fixed Pair Option?
A fixed Pair Option tracks the relative performance of the option’s underlying stocks from the trade open to expiry time.
What is a Floating Pair Option?
A floating Pair Option tracks the relative performance of the option’s underlying stocks from the option start time to the expiry time. You can also close your position prior to expiry.
What is the Amount?
The amount is the investment amount you decide to invest in a particular Pair Option. This helps determine how much you will earn at option expiry.
What is In the Money?
Your trade is in the money if the stock you selected is the better performer at expiry. You will receive a predetermined payout from 5% to 700%.
What is Out of the Money?
Your trade is deemed out of the money is you chose the worse performing stock in the stock pair. Most Pair Options brokers offer a payout of 0% in this scenario.
What is the Expiry Time?
The expiry time is the time when the purchased Pair Option contract expires.
How Do I Check My Trade History?
Navigate to the My Account section and click on Trade History to view the history of your past Pair Options trades.
What is the Meaning of the Blue and Green Colors?
The blue color represents one stock and the green color represents the other stock in the stock pair.
Is a Deposit Required in Order to Trade?
A deposit is not necessarily required to trade, because most Pair options brokers allow you to star trading with a free demo account. Remember that profits/losses are virtual.
How are Demo Accounts Dynamic?
Demo accounts allow you to practice Pair Options trading prior to investing real money. The money Pair Options brokers use in their demo accounts is virtual money. This is an opportunity to see if Pair Options are the right trading toll for you while being able to trade with a full range of stock pairs.
What is the Minimum Investment Amount?
The minimum investment amount in a single Pair options is $10.
What is the Maximum Investment Amount?
No transaction can exceed $3000. However, you can purchase multiple contracts of $3000. Therefore, you can invest vast amounts of money in contracts within the Pair Option amount and expiry time.
What currency is My Account Denominated?
The base currency of your account can be in US Dollars, British Pounds or Euros.
How Do I Deposit to My Account?
The deposit methods vary for each Pair Options broker. Most allow you to deposit via credit card, bank wire transfer and Moneybookers. Simply go to the Deposit section to deposit funds into your account.
What is the Process to Withdraw Funds?
Withdrawals can be made back to your credit card or via wire transfer. Well established Pair options brokers offer more withdrawal methods. Go to Withdraw/Withdraw Funds in the My Account section.
Do I Download Software to Trade Pair Options?
No. Pair Options trading requires no software download, as their trading platform is 100% web-based. It is highly desired to have the most recent Internet browser to use all the Pair options trading features.