Option ranger’s trading assets
This page contains a variety of assets which will be of use to traders using our option ranger’s trading platform, particularly as a part of their option rangers trading strategy.
An asset, or underlying asset, is a term commonly used in derivatives trading, in this case option ranger trading. It is a financial term which describes the items which are available to trade as option ranger.
People often get option rangers confused with online binary options. When trading binary options, you have to estimate if the price will increase or decrease during a certain timespan. With option ranger however, you are able to predict at every price and every time in which price range your order will end up.
Furthermore, people tend confuse option ranger with online stock trading. Unlike a stock broker, you will not buy shares, but trade options on currency exchange rates.
Our option ranger platform is designed to give you the ultimate trading experience, with limited in risk and time.
At this moment MobyTrader offers (crypto) currency pairs as an underlying asset.
Currency pairs are a combination of two currencies where one currency is used to purchase another. Pairs have been created as an easier way of comparing the various options and helping comprehend each in relation to the other. Currently, one of the most popular currency pairs is EUR/USD.
In each pair, the first currency is the commodity, and the second currency is the money. Thus, in the EUR/USD example given above, you are using USD to purchase EUR, regardless of the currency your trading account is in. Therefore, your trading account could also consist of a cryptocurrency (like the bitcoin).
Your broker would convert your existing currency into USD, and then utilize that to buy EUR.
When buying a currency pairing you take what is known as a ‘long position’, and when selling you take a ‘short position’.
With currency related options, it is important to have an understanding of the climate of the currency market. It is similar to forex trading in some ways, but you are not trading any real currency. If you believe the market will sell bitcoins, then this will bring the exchange rate down in relation to the USD for example.
MobyTrader provides regularly updated market information on popular pairings, and furthermore includes the popular cryptocurrency bitcoin in this currency index. Bitstamp provides MobyTrader with the rate of USD/BTC.