Stockpair, KIKO Options Give Ultimate Control
Stockpair’s latest innovation isn’t really that new, it’s been around a year or so at least, but it is still pretty cool. They are called KIKO options, short for Knock In Knock Out, and they don’t have an expiration. Well, at least not in the way you are used to at any rate. Unlike so many other innovations in the binary options industry this one has not faded away so traders must be using it. Whether or not it is truly a useful tool and something you should be trading is yet to be seen. But that’s why were here.
To start with, Stockpair is a well established binary options broker that has been operating legitimately for many years, since the very beginnings of the industry. It is a brand of Nextrade Worldwide LTD, a CySEC regulated broker/dealer and one of our recommended brokers. The KIKO trade is in addition to a full range of binary trading tools. To say it doesn’t have an expiry is a little misleading, but only a little. The options lifespan is not based on a time frame but rather a price level. The option will remain open until that price level is hit and then it expires. If you choose the right level you profit.
What Are KIKO Options?
In essence they are a range or boundary type binary option with one difference, aside from not being marketed as a range or boundary option, and that is they removed the expiry. While the option is open it trades between an upper and lower boundary, the range, and to trade it you choose one or the other. If you choose the high boundary and prices move up you profit, if they move lower and touch the lower boundary first you lose. In practice they behave a lot like a boundary option mixed with one touch without expiry; you have the boundary, the option is open indefinitely and it only takes one touch, good or bad, for the trade to end.
A plus is that the asset list available for KIKO is pretty good. A lot of times with exotic binary options like this the asset list is very small. This one includes all four of the asset classes; forex, indices, stocks and commodities. Stocks and indices are global so there is just about always a market open somewhere that can be traded. The list is forex strong but there are a decent listing for each category. Indices and commodities is weakest, 6 and 3, but still not bad and there is definitely something there to trade for everyone and every style.
The range between the boundary is called the span and there are two settings for this, Low and High. The lower span is the narrower span and can often come with higher payouts during active trading times. The high span is the wider range but in either case payouts can be as high as 80% but tend to run in the 75% to 77% range. At the time of this posting the narrow range on the EUR/USD was 0.00058 micro-pips, the wider range was 0.002 pipettes, fairly close in either event but enough to provide some action. The span, regardless of setting, will track with the asset price and may narrow or widen due to volatility.
Is It Worth Your Time?
The bottom line is that these are a great way to trade and that is why they are still around. The only drawback is that payouts are on the low side, less even than what you get trading Stockpair’s own platform using standard binaries, but there is a reason. Traders have an edge in range style trading. I’ve heard it time and time again from industry insiders, it’s why so many brokers don’t have that style of trading and why so many of the ones that do make it suck. So, you may have to give up a little on the payout side but you can make up for it with higher win rates. The trick I think will be to always trade a good, directional, signal so that you get market movement. Ranging markets may leave you waiting around a while for your options to expire and we don’t want that. There’s no time to lose, start trading KIKO now.