Range Options

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Range options are a type of binary option that allows traders to profit if the price of an underlying asset stays within a predetermined range or price level. This means that traders can benefit from the lack of market volatility by predicting that the price of an asset will remain within a specific range during a specified time frame.

Range options work by setting two price levels, a lower and an upper limit, within which the price of the underlying asset must remain during the option's lifetime. If the asset's price stays within this range until the option's expiration, the trader receives a payout, typically between 70% and 90% of the initial investment. However, if the asset's price moves outside of the predetermined range at any point during the option's lifetime, the trader loses their investment.

Range options can be useful in situations where the trader believes that the price of an asset will remain stable over a given period of time. This can be particularly advantageous in volatile markets, where traditional options may be too risky. Range options can also be used in conjunction with other strategies, such as trend following, to further increase the chances of a successful trade.

It's important to note that range options, like all binary options, carry a high level of risk, and traders should only invest what they can afford to lose. As with any financial instrument, traders should conduct thorough research and analysis before making any investment decisions.

Range options, also known as boundary options, are a type of binary option where traders predict if the price of an asset will remain within a certain range or break out of it. The range is defined by an upper and lower boundary, and traders must decide whether the price will stay within these boundaries or move outside of them.

For example, let's say a trader believes that the price of gold will remain within a certain range of $1,800 to $1,820 per ounce for the next hour. The trader can place a range option trade with an expiry time of one hour, selecting the upper and lower boundaries accordingly. If the price of gold remains within the range at the time of expiry, the trade will be considered in-the-money, and the trader will receive a payout. However, if the price moves outside of the selected range, the trade will be considered out-of-the-money, and the trader will lose their investment.

Range options are popular among traders who prefer a less volatile trading experience, as they offer a fixed profit potential and a clear risk-to-reward ratio. They can be traded on a variety of assets, including currencies, commodities, and stocks.



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