What are Boundary Binary Options?

Boundary Options have an upper and a lower target price that form a boundary range. You have to determine whether the price of an asset will be inside or outside of this range when the option expires. These types of options are also called In Out Options, or Range Options.

Both the upper and lower prices are constantly moving until you place your trade. Once you place your trade they will stay fixed and only the market price will be moving.

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Example of trading an In Boundary Option:

You think that in the next 30 minutes, the price of GBP/USD will stay within a range of 1.60493 and 1.60422 given by the broker.

So you enter the market at 1.60458, you select “In”, the amount you want to invest, for example $500, and the time the option will expire. Then place your trade.

boundary options

In the image below, you can see two lines in the chart at the upper price of 1.60493 and the lower price of 1.60422. If the market price stays within this range when it expires, then your trade is a winning one.

boundary options chart

Once the expiry time is reached there are 2 possible outcomes:

  • • The price of GBP/USD is within this range, for example at 1.60470 – so your option was In the Money (ITM), which means you’ve made a profit! Because the return was 70%, with an investment of $500 you’ve made a profit of $350. The payout in this case is $850.

  • • The price of GBP/USD is outside of this range, for example at 1.60500 or 1.60410 – so your option was Out of the Money (OTM). Options that expire OTM usually have 0% return and do not offer any refund. In this case you will lose your whole investment of $500.

Start Trading Boundary Binary Options with Boss Capital.

Example of trading an Out Boundary Option:

You think that in the next 30 minutes, the price of GBP/USD will close outside of a range of 1.60475 and 1.60405 given by the broker.

So you enter the market at 1.60440, you select “Out”, the amount you want to invest, for example $500, and the time the option will expire. Then place your trade.

boundary options trade

In the image below, you can see two lines in the chart at the upper price of 1.60475 and the lower price of 1.60405. If the market price goes outside of this range when the option expires, then your trade is a winning one.

boundary options trading

Start Trading Boundary Binary Options with Boss Capital.

Once the expiry time is reached there are 2 possible outcomes:

  • • The price of GBP/USD is outside of this range, for example 1.60490 or 1.60400 – so your option was In the Money (ITM), which means you’ve made a profit! Because the return was 70%, with an investment of $500 you’ve made a profit of $350. The payout in this case is $850.

  • • The price of GBP/USD is within this range, for example 1.60445 – so your option was Out of the Money (OTM). Options that expire OTM typically have 0% return and do not offer any refund. In this case you will lose your whole investment of $500.

 

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