Category:Boundary options
Boundary options, also known as range options, are a type of binary options trading that require the asset to remain within a specified price range at the expiration time. Traders predict whether the asset's price will remain within the specified range or move outside of the range before the expiration time. Boundary options offer traders a fixed payout if their prediction is correct and are a good option for traders who expect the asset's price to remain stable.
To trade boundary options, traders select an asset and choose an expiration time. They then predict whether the asset's price will remain within a specified range or move outside of the range before the expiration time. If the asset's price remains within the specified range, the trader receives a fixed payout, typically between 60% to 95% of the initial investment. If the asset's price moves outside of the specified range, the trader loses their initial investment.
Boundary options are popular because they offer traders a fixed payout if their prediction is correct and allow traders to profit from stable market conditions. However, they also come with a higher level of risk compared to other types of binary options trading.
There are several variations of boundary options, including:
In/Out options: In/Out options require the asset's price to remain within two specified price levels at the expiration time. Traders predict whether the asset's price will remain within the specified price levels or move outside of the levels before the expiration time.
No touch options: No touch options require the asset's price to not touch a specified price level before the expiration time. Traders predict whether the asset's price will touch or not touch the specified price level before the expiration time.
In conclusion, boundary options are a type of binary options trading that require the asset to remain within a specified price range at the expiration time. They offer traders a fixed payout if their prediction is correct and are a good option for traders who expect the asset's price to remain stable. It is important for traders to understand the different variations of boundary options and their potential risks and rewards before engaging in binary options trading.
Pages in category "Boundary options"
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