An inbound option is a component of the boundary instrument that can be used to trade in the binary options market. By using this tool, a trader needs to identify whether a given asset will expire within the upper and lower boundary or not. The broker predetermines the upper and lower boundary.
How does an Inbound Option work?
An inbound option is used for trading binary options within a given time. Only after analyzing the market trends and seeing the minimum and maximum price boundary of an asset should you make a decision.
Once you have correctly understood the market, you can predict whether the expiry value will be within the decided level or not. If your predictions are accurate, you will win. However, if the asset expires outside “outbound”, you will lose your money.
Example of Inbound Option
Here’s a quick example to understand the inbound option.
Let’s assume you are trading on gold. The maximum and minimum price range of this asset set by the broker is 1.35282 and 1.35211, respectively. For a successful inbound option trade, the value of the asset should expire within the range. If it does, the trade will be In The Money, and you will win.
An inbound option is a component of boundary trading that is getting popular lately. It is easy to understand simple to execute.
To make your inbound option successful, you can understand the basic market trend of the particular asset you are trading in.
Read other important articles in the binary glossary.
(Risk warning: You capital can be at risk)