An Outbound Option is a binary options tool in which a trader needs to speculate on whether a certain asset will arrive at a rate that is outside of a predetermined extent of values by the expiry time of the option.
Conventionally speaking, binary options trading revolves around the act of speculating on whether the expiry price of an underlying asset will be higher or lower than the strike price, by the end of a given time frame.
Trading an Outbound Option not only revolves around trading within a specific time frame, but it also involves speculating on whether or not the expiry level will be outside a specific range of values.
One of two possible selections in a Boundary Instrument, an Outbound Option has a predetermined payout rate in the event of a win, and the trader will lose the investment amount in case of a loss in both scenarios.
An example of such a trade involves placing a trade on a certain asset with a target price hypothetically varying between 1.35579 and 1.35585. If the expiry price does not fall within that range, the trade is In The Money. If it does, the trade is Out Of The Money.