The binary options broker Stockpair, specialized in pair options, has increased its range of trading instruments with the inclusion of a new type of option that combines the characteristics of Knock-In binary options and Knock-Out binary options. This new product is called by the company as KIKO options (Knock-in, Knock-Out), which have a number of advantages as discussed below.
The KIKO options are a new and simple trading instrument in which the trader has to predict which of the upper or lower target prices (barrier) will be reached first by the price of the underlying asset.
- If the underlying price reaches first the target price selected by the trader (Knock-In), the option expires “In The Money” (winning trade) and the investor receives a fixed payment specified by the contract from the outset.
- If the underlying asset reaches the opposite target price first. the option expires “Out The Money” (losing trade), and the trader does not receive any payment.
- In the KIKO options there is no defined time period as in the case of other types of binary options. This means that the operation will continue open until the underlying price reaches one of the two barriers.
Advantages of trading with KIKO options of Stockpair
- These binary options allow transactions of low volume ($20) and high volume ($600), depending on the trader strategy and the equity available in the account.
- These contracts offer a high level of payment, up to 80%, which compares with that offered by other types of binary options.
- KIKO options have no expiration period, so the trader does not have to select a duration for the trade. Thus, the trader does not have to commit to a time frame.
- These options are simple and intuitive. They are instruments easy to learn and can be used without problems even for beginners traders.
- KIKO options have a fixed and controlled risk level. Payment or performance of the option is shown before opening the position, and no leverage is required. You can only lose the initial amount invested in the trade (premium).
- A wide variety of underlying assets. The trader can choose from the wide range of underlying assets offered by Stockpair to trade with these options.
- No hidden fees or costs.
Underlying assets offered by Stockpair for KIKO options
- 10 currency pairs (Forex).
- 3 commodities.
- 7 stock indices.
- 24 shares of the US market.
- 22 shares of the european stock markets.
- 9 shares of the australian stock markets.
How can I trade with KIKO options on Stockpair platform?
The Stockpair trading platform is characterized by its simplicity and user friendly interface. These features are extend to the KIKO options, which means that the trading process with these options is very simple as shown below:
Step 1: Select the underlying asset
First we choose the underlying asset whose price will be used as a basis for the trade with KIKO options. In this example, the underlying asset is the EUR/USD.
Step 2: Select the type of option (KIKO options)
The next step is select the type of binary option we choose to trade, in this case KIKO options.
Step 3: Select the range of the barriers (small or large amplitude)
Now we determine the amplitude between the two price barriers, large or small, depending on the expected market volatility.
Step 4: Select the barrier to be reached first according to our market forecast
At this stage, the most important, we choose the barrier which will be reached first by the underlying asset according to market forecast. If we believe the market will go up, we select the upper barrier, but if we consider that the market will go down, we choose the lower barrier.
Step 5: Set the trade and open the position
Finally we set the transaction and indicate the risked amount in the trade (premium), in this case $100. The platform indicates the type of position (bullish or bearish), the two barriers set for the trade where the maturity and settlement will occur, the premium or amount risked by the trader, the return offered by the option and the full payment if the option ends In The Money.
When the trader click the buy button the option is acquired and the trade is activated.
You can obtain more information about KIKO options of Stockpair and other services of the broker in the company website through the following link: