Sunday, April 14, 2013

WHAT ARE PAIR OPTIONS?


Pair Options are a simple and direct way to trade in relative performance of stocks and profit by predicting which stock within a given stock pair will perform better (e.g. the pair Google vs.Yahoo). If you selected the better performer you will receive a payout. The payout is shown when you place a trade, and varies with the pair, option type and market conditions. Stockpair's payouts can be as high as 350%. Pair Options are binary, so you are paid only if you selected the better performing stock. http://go.stockpair.com/visit/?cid=341851&r=478

One of the unique benefits of Pair Options' is that you do not need to worry about the general market movements. You can profit even when the market goes down, because only the relative performance between stocks – which one underperform and which one out perform- have an impact on the Pair Option value. Even if the stock you chose went down, the only thing that matters is what the other stock did, and if it went down more, your Pair Option will be in the money.

For Example:
For the pair Vodafone / British Telecom you open a Fixed Pair Option trade of $100. You picked Vodafone to be the better performer by the end of the day. The option is set to return 82% if Vodafone performs better.

1. Relative performance is measured for each stock from the time you placed the trade (option start).
2. If Vodafone is the better performer, your option expired "In the Money" and your payout is
3. $182 ($100 initial trade + $82 return).
4. If British Telecom is the better performer, your option has expired "Out of the Money" and you don't get a payout.

With Pair Options, you don't have to wait until the expiry since it enables closing a position before expiry. http://go.stockpair.com/visit/?cid=341803&r=478

Pair Options are Unique and Offer Significant Benefits to investors:
1. Pair Options are Market Neutral, meaning that you can make a profit even when the market goes down.
2. Pair Options are based on comparison, and only the relative performance counts.
3. Pair Options give you complete flexibility: you can open or close your position at any time. You can exit and take profits or cut your losses.
4. Pair Options pricing is transparent: no hidden costs, absolute loss cap limited to the option price, payouts are shown continuously and are updated during market trading hours. http://go.stockpair.com/visit/?cid=341804&r=478

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