Stock pairs are a type of binary options trading that has gained a lot of popularity in recent years for some reasons. First and foremost, it involves trading of two stocks of equal strength. It also deals with natural assets, including Forex currencies, indices, as well as commodities.
Mostly, Stock pairs trading allow you to compare the relative strength of two different stocks and decide which one will outperform the other. Then you can decide whether to go with best performing stock or not. There are some important tips that you need to be aware of as a stock pairs’ trader. They include the following:
Getting the Gold Account
Getting the gold account status is the best thing that you can hope for as a stock pair trader. Mostly, Stockpair avis is known to reward users with high account balances. To get a Gold account, you need to have a minimum deposit of $ 5, 000.
There are other benefits of getting a Gold account, which include
- Receiving 1% cash back on your overall investment
- Accessing Stockpair avis trading indicators
- Accessing expert traders that can evaluate your trading and who will give you tips on how to perform better.
These benefits can have a huge impact on your overall success as a binary options trader. Taking full advantage of these benefits can make you a very successful Binary Options trader. Also, the benefits are free of charge; the only requirement is to open a Gold account with a minimum deposit of $ 5,000.
Using Volatility Indicators all the time
Using volatility indicators every time you are trading the pair options will always guarantee you success. Stock pairs run for one day, week, or month. With each particular period, you need to predict which stock will outperform the other.
As a matter of fact, it is impossible to keep monitoring the stock pair all the time right after it has started running. Sometimes you will encounter situations where one stock is leading in a couple.
When it comes to stock pair trading, the leading stock gets a much smaller payout (in some cases as low as 20% or lower), while the one that is lagging behind gets a much higher payout, which could be up to 200% volatility indicators are crucial to you as a stock pairs trader because they help you determine whether the front runner has a safe lead.
A good example of a volatility indicator is Average True Range. The essence of these signs is to help you know how far the market can move within a given period. This will in return help you determine whether the lagging stock still stands a good chance. If your conclusion is that it doesn’t hold a good opportunity, you can now invest in the leading stock without a second thought.-
Learning to use Technical Analysis
Learning to use technical analysis is very essential because it will help you to predict short-term market movements accurately. You can teach yourself how to use technical analysis by using online resources.
To become successful in stock pairs trading, you need to develop a solid trading strategy and strictly stick with it.