In order to trade binary range options every trader must know the concept behind the term. A Range option is a type of binary option, where the trader should predict if the chosen asset will expire within a predetermined range. Based on tunnel trading, range options are currently only available on OptionBit.
In range options, to be in-the-money, a binary trader must accurately predict whether a price of a specific asset will expire in or out of a predetermined range.For example, let’s say you decided to buy a range option of USD /JPY, which is currently trading at 1.20. The option range is between 1.00 – 1.30. If the binary investors believes that USD /JPY option will expire at about 1.10 and he/she decides to purchase the in-the-range option.
At the time of expiration, the USD /JPY is at 1.29 and did not break out of the range for the full hour. This means that you are in-the-money. Since all of the payouts are determined in binary option,the trader already knows that they will receive a 75 – 81% return on their investment.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.