30 minutes to 9 hours
Tradable assets: Stocks and Commodities
Potential payout percentage:
Up to 78%
Pairs is one of the simplest trading tools on our platform. It allows traders to capture profits from the relative price movements of a pair of underlying assets. Most often, the assets are similar, or from the same sector, and only the relative performance of the two assets matter.
So, when trading with Pairs, traders choose which asset will outperform the other in a pre-matched pair by Expiry Time. Each asset displays a payout percentage. If the trade ends with the asset you chose outperforming the other, you will be In-The-Money and receive your predefined payout.
This represents an interesting approach to binary options where your trades are somewhat insulated from events in the wider market. This is because, instead of trading on the price movement of an asset, you are trading on the relative level of performance of two assets.
For example, say you open an option on the asset pair of Gold vs. Silver. The rate is fixed at the point that the contract is placed. As a trader, you decide that Gold will perform better over your contract duration. If Gold outperforms Silver by the Expiry Time, the fixed payout is earned. It does not matter whether the market is in an uptrend or downtrend.
To use Pairs on our trading platform, log in to your account and head to the Trading Platform. Then follow the steps below:
Choose an asset pair you want to trade. Examples include Gold vs. Silver and BMW vs. Daimler.
Place a Call option if you think the price of the asset will rise by Expiry Time or place a Put option if you think the price will fall.
Click Apply on the Trade Approval window.
Or have a look at our other trading tools: