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.