pairs-trading-heading-iconPairs Trading

Paris trading - AlphaBinary

AlphaBinary endows its clients with useful and fascinating tools for binary options trading instruments which includes pairs trading, an indispensable tool in the world of trading.

Trading pairs with AlphaBinary is usually in fact a very effective and remunerative method for consistent success. This trading instrument gained popularity among traders who are more inclined to use more challenging trading tools as well as innovative strategies in the trading sphere.

What is pairs trading?

Unlike other trading tools which are based upon forecasting the price movement of an asset, pairs trading enables traders to speculate which asset will outperform the

other one within the given expiry time. In fact, pairs trading allows traders to trade one asset against another one in order to know which one will perform the best when the transaction expires.

This trading instrument has been widely used by adept traders as it is a tool which brings with it remuneration with lower risk positions. The pairs tool is found in the trading section on AlphaBinary’s platform. It is the second tool found on the left-hand side of the tool bar. Both new and experienced traders can try this tool to make the most out of it.

How does pairs trading work?

Traders will find that using pairs with AlphaBinary is very easy and straightforward. A trader simply needs to open a trading account with AlphaBinary and then deposit funds in the account. Once this has been done, the trader needs to go to the AlphaBinary’s trading platform and click on “Pairs” tool. However, it should be noted that each and every trader should submit their compliance documents so that their account is activated.

Moreover, the choice of two underlying asset is another important step that traders need to take. Traders need to assess the relative performance of two correlated assets, as opposed to the price direction of one asset when using other trading tools. This is the distinction of pairs trading. In this way, the trading process is simplified and traders earn high returns accordingly.

To use the pairs tool, traders need to ensure that they are trading with two identical assets. For example, gold/oil is a good example of a correlated pair. They are two commodities that operate in the same markets. Moreover, Indices like Dow Jones/FTSE are further examples of correlated pairs.

Furthermore if the pairs deviate from each other, this implies an opportunity to earn money. Hence, traders will obviously invest in the asset that has dropped; “short sell” the asset that has risen and leave as soon as the connection between the two assets becomes stagnant.

Advantages of pairs trading with AlphaBinary?

  • This trading tool is easy and simple to use and understand. Both new and professional traders can use this trading instrument in order to potentially earn high return on investment.
  • There are many enticing asset pairs that can be traded over the trading platform. AlphaBinary ensures that traders get only the finest trading platform in order to place transactions.
  • Trading pairs with AlphaBinary is likewise very accessible given that traders can start placing trades with a minimum of $25 only. Alongside, the payout percentage can go over 70% depending on the volatility of the market.
  • Traders are offered a wide range of assets to choose from AlphaBinary’s platform. In addition, AlphaBinary also endows its traders with a variety of asset pairs so that they can initiate a remarkable and remunerative trading journey.
  • Expert trader’s assistance is available upon request. All traders using the pairs instrument can take advantage of the professional assistance that AlphaBinary provides to them.

How to trade pairs with AlphaBinary?

  • Traders need to login to their AlphaBinary account.
  • If they don’t have an AlphaBinary account, they can create one here and log in.
  • Traders need to activate their accounts by submitting their compliance documents and then funding it.
  • Once done, they need to click on “Trading Arena” on AlphaBinary’s homepage and then choose the “Pairs” trading tool.
  • The next step involves choosing an asset; an expiry time and the investment amount.
  • In the final step, traders will have to click on either the “Call” option or a “Put” option and then click on “Apply”.