Unique system for range options
Range binary options could be very profitable, with payouts up to 360%. Also known as boundary options, this type of trading is widely offered among binary brokers.
We recommend you learn how to trade range options on a demo account first before going for the real action.
The boundary is one of the riskiest types of options since it is easy to guess the direction of price movement but guessing the value of the price is more difficult. However, by using a little cunning, ordinary logic, you can consistently earn and reduce your risk to a minimum.
Learning to trade range options
Let’s recall that with range options we need to predict, or guess, if the price of the asset will be inside the range. How do we do that? We read the news, looking for the most important items that can increase the volatility of our asset. We analyze the schedule and then decide inside or outside.
Our broker also analyzes the market, reads the news and reacts. Often, some brokers on the eve of the release of important news that could affect the volatility, increase the range gap. What does this mean for us?
Sometimes, it seems we did everything right and even correctly predicted, and the price was moving the right way but didn’t break the range. At the result, we just wasted money. Even if we can make a profit, this is rare; the news isn’t constant, and we want trade all the time. What do we do?
Trading "on the contrary"
While the majority tries to predict the price will be out of range, let's try in the range. According to statistics, traders lose more when trying to trade during news and buying “OUT” options. According to the probability theory, “IN“ options have a higher probability of being profitable than “OUT.”
It’s hard to guess how the price will react to news; it will react, but how it can that be shown on charts. Sometimes, the price needs just two or three points to break the range, and these two or three points can cost us our money.
Let’s consider the example of range options trading with broker 24option. On 24option.com, select Boundary options. Go directly to the asset. I suggest choosing the asset GBP/USD. Now go to the well-known site investing.com and look for options trading signals.
The technical indicator signals tell us “strong buy,” so the market expects important news, which can affect the price and break the range. Accordingly, it can be concluded that all investors are aimed at the growth of the asset price. Logically, we need to acquire an option GBP/USD “OUT of range."
Remember that the broker is interested in us losing our money and can push the boundaries off the range before we notice it. So let's acquire the option "IN."
Now, look at the result. We purchased the range option "IN." After 15 minutes, the price of the asset demonstrated high dynamics but not out of range.
The same situation occurs with the absence of news. During the absence of news, the probability that prices will break the range is at a minimum, and it’s better to buy “IN” options. In this case, they have bigger possibilities to profit.
Using this range options strategy, you can trade options at any time.