With Pair Options, traders are allowed to predict the relative ratio between two assets from the same equity type. Unlike in Binary Options where the rise or fall of a commodity is predicted, or in Long Term which is an extended version of the Binary Options trading, in Pair Options a trader predicts what asset will outperform another by expiry time.
So along this line you may trade on the rise or fall of NYSE compared to FTSE, Nissan compared to GM, corn versus wheat, gold versus silver, and so on.
The idea for Pair Options came from the universe of currency crosses. Pair Options trading is based on relative strengths or weaknesses of assets and not on absolute strengths.
