Stockpair Binary Options Types

Stockpair is committed to provide traders with a binary options trading platform that is built with the latest technology. The broker offers two main types of binary options: Binaries and Pairs. The trading rules are simple and clear.

Binaries

In the Binaries, there are two types of options available for trading: Up/Down and Kiko.

Up/Down

The Up/Down options are the most common type of binary options and they are also known as High/Low options. In the Up/Down options, a trader predicts whether the price of an asset will go up or go down at the time of expiry. If the trader made a correct prediction, he will make a profit; otherwise, he will lose the trade.

The expiry time of the trade includes: 60 seconds, 90 seconds, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 60 minutes, end of day, end of week, 14 days, 30 days, 60 days, 90 days, and 150 days.

Up/Down options example:

Let’s take the above figure as an example. A trader placed a trade by predicting that the EUR/USD will go up in the next 10 minutes and he invested $100. The payout for this trade is 82%.

If the target price of EUR/USD at the expiry time was higher than the current price, the trader will obtain a return: $100 + $100 x 82% = $182.

If the target price of EUR/USD at the expiry time was lower than the current price, the trader will lose and obtain a return of $0.

Kiko

Stockpair offers this exclusive KIKO options for traders to place trades on the platform. In the Kiko options, a trader forecast whether the asset price will firstly hit the upper price target or the lower price target. What makes Kiko options special is that there is no expiry time. Once the current price hits either of the target prices, the trade will expire.

Kiko options example:

Let’s assume that a trader opened a $100 trade on EUR/USD and predicts that the current price (1.07182) of this asset will hit the upper price target (1.07212). The chosen upper price target is called “Knock In” and the not chosen one (i.e., lower price target) is called “Knock Out”.

If the current price firstly hit the upper price target, i.e., Knock In, the trader will make a profit and obtain a return: $100 + $100 x 82% = $182.

If the current price firstly hit the lower price target, i.e., Knock Out, the trader will lose the trade and obtain a return of $0.

Pairs

In the Pairs, traders predict which one of the stocks will outperform the other and select the better one. There are two types of options available for trading: Fixed and Floating.

Fixed

In the Fixed options, a trader compares two stocks and forecast which one of the stocks will perform better than the other. The start time of the trade is the time when the trader decides to open the trade and the prices of the assets are set at the start time.

The trader needs to determine the expiry time. The expiry time of the trade includes: 60 seconds, 90 seconds, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 60 minutes, end of day, end of week, 14 days, 30 days, 60 days, 90 days, and 150 days.

Fixed options example:

A trader would like to open a trade by comparing CBA with WBC (see the figure above). The trader predicts that CBA is going to perform better than WBC in the next 10 minutes. He invested $100 and the payout rate for this trade is 82%.

If CBA performed better than WBC, the trader will make a profit and obtain a return: $100 + $100 x 82% = $182.

If WBC performed better than CBA, the trader will lose the trade and obtain a return of $0.

Floating

The Floating options are basically similar to the Fixed options, in which a trader compares and forecasts which one of the two stocks will perform better. The main different is that the start time (usually beginning of a day, a week or a month) and expiry time (usually end of a day, a week or a month) are predefined. The payout rate varies and it is shown in real time on the trading platform.

The predefined period includes: today, this week, and this month.

Floating options example:

Let’s take the above figure as an example. A trader opened a $100 trade by comparing CBA with WBC. The trader predicted that WBC was going to perform better than CBA at the end of the day. The payout rate at the time when the trader places the trade is 235%.

If WBC performed better than CBA at the end of the day, the trader will obtain a return: $100 + $100 x 235% = $335.

If the trader saw WBC performed better than CBA one hour before the expiry time and decided to close the trade, he may still obtain a return of $100 + $100 x 120% = $220.

It is important to note that, for the above binary options types available on the Stockpair binary options trading platform, traders may be able to close a trade before expiry time. It is advised that you fully understand the trading rules and the trading platform before you place real trades.

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