Binary options range or boundary
The binary options range are a type of binary options is not very well known by traders, because it is not offered by some brokers. The options are also called boundary interval, or range, and are both with performance standards, then the 70% -80%, both with high efficiency , this also comes to 500-600%.
How do they work?
To purchase an interval option, you must have an account with a binary options brokers.Logged in to the platform, you select precisely the type range options and choose a specific asset, such as commodities or commodities, stocks, indices or forex. Finally it decides the capital to invest and the trend that you think would have the asset. At this point expects the deadline.
How do you earn?
Unlike binary options Top / Bottom, do not predict whether the price of the asset will increase or decrease, but if that will remain within a certain price range or not. For example, consider the cross Euro / Japanese Yen , currently the market price is 131,997. The maturity of the option is set for 11:45, then in 30 minutes.
The price range is set by the broker as a maximum 132,047, at least 131,947 . This interval determines the price range within which the title can move but not to go out if you want to invest on "Inside". If you vule invest "Off", it is thought that at maturity the market price of the cross Euro / Yen will or rose above 132,047, or fell below 131,947.
The performance range of the options is variable and depends basically on three elements:
- Asset selected
- Option expires
- Performance standard or high-yield
Then, based on the asset chosen or residual maturity, yield, sometimes also called payout, may change, but normally, the differences for options with performance standards are the order of a few percent. The major difference is noted, however, between options with performance standards and those with high performance.
The options range with performance standards offer precisely the choice to invest in, or out of, with a price range of limited size. In short, that the price of the asset remains or less within the range has in principle the same probability. That's because the payout is usually 70-80% for both "inside" and for "Off".
Go instead to the options with high yield, these offer only one option, are with the choice "outside". The range set by the broker is much larger, and therefore more difficult by the deadline the share price comes out of range. For example, consider the EUR / USD the price of which is currently 1.28732, while the range set by the broker is 1.28865 - 1.28597 with a maturity of 15 minutes. As you can see, the price range is equal to 268 pips, so very large for a deadline of 15 minutes. For this reason, the payout of this couple was 200%.