What Is Tunnel Binary Bet
Tunnel binary option is a type of binary options trading in which a trader has to choose two different price levels between which they expect the value of an underlying asset to remain within a prefixed time period. In simple terms, a price range has to be selected in which the assets worth is supposed to be in before the time of expiry of the trade. As an example, you have to speculate that the stock of a firm would stay within the $100-$150 price range for an hour.
There is a variation of this trade where traders have to choose a price range outside which they predict their asset worth to close. The trade would be termed successful if the prediction comes true. As an example, you have to predict that the price of a stock would break out of the $100-$150 price range for an hour.
Advantages Of The Tunnel Trading
These options also referred to as boundary binary options or In/Out binary options, and promise very significant returns to investors. The greater you stretch the price range, the better your payout will be. Conversely, you get a smaller payout for a smaller boundary.
Although most brokers offer only the stay-between tunnel options, some also offer both stay-between and end-outside varieties. These options are lucrative for traders who wish to make big profits in the binary options market. But there are some risks involved, and you have to make a careful analysis of the market conditions before you select a price range for your stock or asset.
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