An inbound option is a type of boundary instrument that can be traded in the binary options market. A trader must use this tool to determine whether or not a given asset will expire within the upper and lower boundaries. The upper and lower boundaries are predetermined by the broker.
What is an Inbound Option?
An inbound option is used to trade binary options within a specific time frame. Only after analysing market trends and observing an asset’s minimum and maximum price boundaries should you make a decision.
Once you understand the market, you can forecast whether the expiry value will be within the predetermined range or not. You will win if your predictions are correct.
You will, however, lose your money if the asset expires outside of “outbound.”
Inbound Option Example
Here’s an example to help you understand the inbound option.
Assume you’re trading in gold. The broker has set the maximum and minimum price ranges for this asset at 1.35282 and 1.35211, respectively. The asset’s value should expire within the range for an inbound option trade to be successful. If it does, the trade will be profitable for you.
An inbound option is a component of boundary trading, which has recently gained popularity. It is simple to understand and execute.
To make your inbound option successful, you must first understand the general market trend of the asset you are trading in.