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Published On: Mon, Apr 8th, 2013

Inbound option

The inbound option is an option on a boundary instrument offering a pre-set or fixed 75% return if the underlying asset expires “inbound”, or within a given range formed by the upper/lower values.

If the inbound option expires “outbound”, or outside this range, 15% of the invested amount will be refunded.  The opposite situation occurs under the outbound option, such that it will offer a 75% return if the underlying asset expires “outbound” or outside the range formed by the upper/lower target values.  It follows that this outbound option expiring “inbound”, or within the given range, 15% of the investment will usually be refunded.  A range option, found in binary trade rooms, is a specialized binary option where traders predict if an asset will expire within or outside of a pre-set range at the expiry time.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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