ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Binary Option Strategy

Updated on July 12, 2014

Binary options are also referred to as digital options and fixed-return options. This is an exciting way to do online trading through wise prediction of the market price, including the currencies, stocks, and commodities but you need a good strategy. Anyone can do the binary options to earn money through online investment. Money is actually made through the binary options. The trader uses the invested amount to buy the contract. He decides the amount of money to be used for the contract, yet it is best to not commit too much for the trade to avoid risks. Another way to make money through binary options is by choosing the payout for the trade. The brokers determine the payout by default, which means the trade, will be adjusted according to the setting of the contract.

Source

The Pairing Strategy in Binary Options

Many traders and investors consider the Pairing strategy as the best one of the binary options because it involves a system wherein the profits are doubled, yet lessen the risks of losing in investment. By considering its functions in the trade, an investor may want to learn more about the binary options and how it is performed to earn money before he or she actually trade online. What is best about the Pairing strategy is that, whether your chosen stock went well in the trading system or not, you will still win because of the pair.

Source

Do You Trade Online On Regular Basis?

See results

Pair Options Trading

Predicting which stock will perform better in a given stock pair is the key in pairing options. As the selected stock performs well, you will get your payout. The payout for the pair stocks can reach up to 350%. To cite an example, you open a fixed pair option of $100 for a pairing stock of Stock A/Stock B. Assuming you chose Stock A as the one that performs better with a set of 85%.

How to Trade on Pair Options

To trade for a pair, you will open on UP, which also referred as CALL, if you think it will go up in the market. If you think the stock you chose will go down in the trade, you will open on DOWN, also known as PUT. If you predicted that, during the life of the stock, it will perform better, then, the pairing strategy is opted. Upon its expiration, and the one you chose went well, your “In the Money” payout will be given based on the percentage that was defined and set in the contract. In case it did not go well in the trade, with your option “Out of the Money” expires and yield you nothing. But because you buy a pair option, you can close a position in the trade even before it actually expires.

Trade Responsibly

  • Never invest more than you can afford
  • Never put all your money in one basket
  • Always double check your numbers before submitting a trade. You can easily misplace a decimal point!
  • Be patient. The stock market is not going anywhere. Research your trades first!

The first step in doing the Pairing Strategy is to choose the pair on which you want to make a trade. You can do that by scrolling on the Selector through the various pairs available. Then you will need to decide which type of pair options you want, a fixed one or a floating one. Once you have decided on the type, you will have to choose the time duration. The next step is to click on the arrow of the stock that you think will perform better. You will find that the percentage of the payout is already indicated in the trade. For example, if you chose Stock A with an 82%, your payout is 82% plus the amount you traded, upon expiration. The last thing to do is to decide how much you will invest in it. You can choose $100 and click the BUY button to officially enter your trade. Once you entered BUY, you will see a screen where you can monitor the trade and manipulate it according to its policy.

Source

Two Types of Pair Trading Options

Fixed Pair Options – When you choose the fixed pair options, it means that you determine the performance of the stock from its start to its expiry. The relative performance of the stock starts from the time you buy it until the expiry time that you chose. Your trade will be fixed and your payout will be based on the defined contract enveloped in it. The payout percentage is 86% and is defined at the time the trade started. In a Fixed Pair Option, when you call a $100 on a set payout of 86%, upon expiration of the trade and your chosen stock pair went well, you will get your $100 plus the payout of $86, for a total of $186. If the chosen stock did not perform better, your payout is 0. But since this is a Pairing Strategy, you can opt to close the position before it expires, and get the payout at a valued amount.

Floating Pair Options – When you choose the floating pair options, it means that you have the option to close the position of your trade to prevent loss and gain early profits once you determined that the stock is not performing better. The relative performance of the stock is based on the predefined period. Payouts for the Floating Pair Options can reach up to 350%, and this is indicated in the trade. If you determine that the trade is going down, you can close your position or sell it at the indicated value of the stock. It may not yield the 350% earnings, but it will still give you a payout based on the value indicated.

Risk Level in Pair Options

You can choose the risk level of your trade by considering the rate of return. The Floating Pair Options have a higher rate of return on the “out of the money” and a lower rate of return on the “in the money.” You can choose a lower risk by going for the “in the money”, but if you have the guts to go for a higher rate of return, yet on a higher level of risk, you can go for the “out of the money.” In Pairing Strategy, the choice is always yours in manipulating your earnings.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)