Pair Options



Pair Options are financial instruments in the category of binary options. This type of binary option is used to trade the relative performance of two stocks in a specific period of time. A trader buys a stock pair option if he believes that a particular stock will perform better in the future compared to another stock (for example Google stock Vs Apple stock). If the selected pair price movement is favorable for the trader –he receives a predetermined payout. If the selected pair price movement is unfavorable for the trader, the initial investment is lost.

The advantage of trading stock pair options is that you don’t have to worry about the general market trend. So you may gain a payout even if the general trend is bearish.

Trading Risk

When you buy a Pair Option your risk is limited to the initial cost of the option purchased as it is not a leveraged trade. Although the overall market risk may be considered high.


Option Expiry Time

Option expiry time can be set to a wide time frame between 1 hour and 5 months.



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