Range is a type of binary option where traders predict if an asset will expire within a predetermined range. Based on tunnel trading, range options are currently available at BinaTrade.
In range options, to be in-the-money you 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 / EUR which is currently trading at 1.10. The option range is between 1.00 – 1.30. You believe that USD / EUR option will expire at about 1.20 and you decide to purchase the in-the-range option.
At the time of expiration, the USD / EUR is at 1.29 and did not break out of the range. This means that you are in-the-money and makes a profit from your investment.
How to trade Range Options?
1. Choosing Range Option
- Login to Binatrades.
- Navigate to Traderoom.
- Choose "Range".
2. Choosing an Asset and Expiry
- Choose an asset that you want to invest.
- Click the drop down menu and choose an expiry time.
- (Optionally) you can filter the asset list by choosing the type of asset under "Category".
3. Choosing an action
- Predict if the rate will stay within(In) or go beyond(Out) the given upper and lower predetermined price when the option expires.
4. Purchase the your Option
- Enter the amount you wish to invest.
- Click "Buy".
5. Trade confirmation
- Wait for trade confirmation to show up.
- Click "Ok".
6. Open Trades
- Check to see your active order in "Open Trades".