- Mr. X Trader
- Number of messages : 7
Points : 1663
Date of Entry : 2016-08-29
Year : 39
Re: Competitor relative value trade
Thu Sep 22, 2016 7:43 pm
Do you mean that you need another broker to make another dealings with? I am trading with Optionstars right now and is it okay to trade with another broker because of the payout rate?
- masstergeek_binary
- Number of messages : 51
Points : 2423
Date of Entry : 2014-11-12
Year : 31
Competitor relative value trade
Sun May 31, 2015 3:51 pm
This strategy can help you profit using binary options by exploiting the opposite price movements of two competing companies. For example, imagine that Microsoft is about to release a new product that is expected to provide a significant boost to the values of its shares.
In addition, you also deduce that rivals, such as Apple, could suffer market share decreases which would have negative influences on the values of their shares. Consequently, by following your fundamental and technical analysis to the full you should open a ‘call’ binary option with Microsoft and a ‘put’ one with Apple.
This action will then provide you with the opportunity to collect double profits by taking advantage of the competitor relative value trade.
In addition, you also deduce that rivals, such as Apple, could suffer market share decreases which would have negative influences on the values of their shares. Consequently, by following your fundamental and technical analysis to the full you should open a ‘call’ binary option with Microsoft and a ‘put’ one with Apple.
This action will then provide you with the opportunity to collect double profits by taking advantage of the competitor relative value trade.
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