Range is the third type of binary option offered by OptionBit. Based on tunnel trading, Range options have a predetermined upper and lower boundary. When buying a range option, the trader must predict whether the price of the underlying asset will stay “In” or go “Out” of a predetermined range at the time of expiration.

This way the trader can trade on the volatility of the asset – If he or she thinks that the asset volatility is high, he or she can buy an “Out” of the range option. On the other hand, if the trader thinks that the option is not volatile, he or she should buy an “In” range option.

Trading Example
You decide to trade a forex option, USD / EUR. In the trading room you see that there are two options available, “In” and “Out”. Each option has a predetermined range and you must determine if the asset will be in the upper or lower range at the time of expiration.

You think that the price of the underlying asset will be in the range at the time of expiration so you select an “In” option. If you thought that the price of USD / EUR will be out of the range at the time of expiration, you should have bought a “Out” option.

If when the contract expires the price of USD / EUR stayed in the predetermined range that you selected, you’ll get a high return on your investment between 75 – 81%.