Dukascopy Offers Build-Your-Own Index vs Stock Binary Options

With this new trading instrument, investors can wager how a specific stock will fare compared with the whole index during

Switzerland based forex broker and bank Dukascopy Group has announced today that it is extending its range of instruments available for trading with a new type of binary option – Pair binary options.

A few months ago Dukascopy Group launched a more traditional type of unpaired binary options – Daily Stock Option. These allow trading of binaries of a particular stock based on its price move during one session instead of the traditional time frames. With this new trading instrument, investors can wager how a specific stock will fare relative to the whole index during the session, not just its price movement.

The broker explains that traders are free to set up any Index/Stock combinations out of the offered wide range of market indices, including American, major European and Asian indices. Pair options are one trading session long, like the daily stock option, and the outcome is based on the daily relative performance of the two underlying assets.

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What this means in practice is that traders can take a position in the market even if they only think they can estimate how a stock will perform compared with the broad economy, not in absolute terms. For example if the FTSE index went down by 5% and Barclays stock went down just 2% it still outperforms the market during the session.

The new type of instrument is now available for trading on demo accounts and in a live environment via Dukascopy’s binary options platform. The default payout rate is 70% and can be decreased all the way to 50% at 5% increments.

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