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Knowledgebase: Binary options terms
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Pairs
Posted by Lydia .A on 09 December 2015 05:40 PM
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Pairs allow investors to predict which of two assets will outperform or surpass the other by expiry. With regular Binary Options, the price of a commodity is predicted. Pairs Options focus on the relationship between two instruments (commodities, stocks or indices). With Pairs, a trader predicts how strong or weak one asset will be compared to another.
For example, investors can trade on the performance of Gold compared to Silver, Google compared to Apple, Dow Jones compared to FTSE.
Let’s take two assets, for instance, BMW vs. DAIMLER. Now the price of BMW is 59.857 and DAIMLER is 36.712. By the expiry time which out of these two (in percentage) will rise the most?
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