Binary options broker Stockpair, has launched “KIKO,” a new kind of options without a pre defined expiry time. Stockpair is a brand operated by NXB Financial Services Ltd, a financial services company which is authorized and regulated by the Belize International Financial Services Commission.
The Belize-licensed firm is developing its own proprietary platform, which allows it to come up with new instruments that are not available to all its competitors.
KIKO options are a new simple trading instrument in which the trader predicts which of the upper or lower price targets (barriers) of the asset price will be hit first. If the price hits first the target the trader chose (Knock-In), the option will expire In The Money (ITM) and he will get a payout. Conversely, if the asset price will hit first the opposite price target, the option will expire Out Of the Money (OTM) and there will be no payout.
Understanding the Gaps in Forex TradingGo to article >>
The main advantage of KIKO options is that the trader does not have to set expiry time and commit to duration – this is the reason they are referred to in the professional jargon as “perpetual options.” This makes KIKO an excellent trading tool for momentum and technical traders , that want to use strategies like in FX and CFDs and still benefit from the simplicity and potential high returns of binary options.
On the new Stockpair offering there is NO set expiry time so until the asset hit one of the barriers, the trade continues. The trader can choose between two “spans”, which define the gap between the strike and the current price, hence influence the trade duration.
A director of the company commented on the new offering, “Stockpair, the inventor of pair options, is continuing to innovate by offering its clients KIKO options, the first of its kind perpetual options (“XPO”) with no set expiry time. Stockpair is committed to developing its proprietary platform to present new trading vehicles to its clients.”