Parameters of Pair Options Trading
Knowing the parameters will make you an expert in Pair Options trading. The 3 parameters are discussed below:
- The Position: Once you have a good understanding of Pair Options trading, you will the desired position, meaning the stock that you expect to be the better performer at expiry. This should be easy, as there are numerous stock pairs to choose from, including from the European, US and other leading markets. The number of positions you trade at any one time is up to you.
- Expiry Time: Once you picked your position, you will need to choose the expiry time of your Pair Option. The most renowned expiry times are one hour, one day, one week and one month. More prestigious Pair Options brokers allow you to select expiry times of two months, three months and four months. Trading Pair Options with more expiry flexibility is a big plus.
- Investment Amount: The minimum amount the top Pair Options brokers allow you to trade with is $10. The amount you invest depends on the funds you have available and experience which you may have as a trader. For example, you may have loads of experience as a Pair Options trader and feel comfortable investing $5000 by selecting Google as the better performing stock in the Google / Apple stock pair.
Once you know all the above parameters well, this will be a great benefit as soon as you get deeply involved trading Pair Options.