KIKO Options or Knock-In and Knock-Out options are the innovation that is a bit different than rest of the binary options we are used to have. KIKO options allow traders to remove expiry times element and place trades based on their value.
This trading instrument is available with one of the brokers we have reviewed on our site – StockPair. Read more about StockPair here.
KIKO Options Explanation
According to StockPair, Kiko options are a simple trading instrument that allows a trader to choose the upper or lower price target – a barrier of the certain asset. The expiry time is not included in the prediction of the asset price.
If the value hits the chosen price than we say that trader has chosen the Knock-In options and it means that a trader is in the money. If the prediction hits the opposite barrier first, the trader has reached a Knock-Out and trader won’t get a payout.
Basically, KIKO option allows traders to choose if the value of a certain asset will go UP or DOWN.
How to Trade KIKO Options with StockPair?
As we have already said, KIKO options simply let you choose an asset and choose which price target will be reached first, without the need of determining the expiry time. From what we can see, KIKO options are the simplest trading instrument, because traders only choose if the price will go up or down.
Traders just need to choose preferred underlying asset, choose the price target and wait for the result. The full payout will be received if the trader has managed to achieve a Knock-In and he will be In The Money (ITM).
KIKO Trading Benefits
According to the StockPair, benefits of trading with KIKO options is that traders are welcome to receive high payouts – up to 80%. Another benefit is that traders don’t need to choose any expiration time, just the prediction of the price target, which keeps the things simple.
KIKO options are a great start for those that have no previous trading experience, they can easily learn from the scratch.
Besides above mentioned, KIKO options with StockPair allow risk control management, meaning the traders will see the possible payout after they pick a value. Traders that choose to trade with KIKO options on StockPair don’t have any commissions or charges.
Learn more about KIKO options trading instrument by reading the link below;
Exotic Derivatives Losses in Emerging Markets: Questions of Suitability, Concerns for Stability, Randall Dodd, Pages 3-24