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Range binary

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Range binary
The Range binary structure has been developed primarily for trading purposes and is essentially a bet on a Spot staying within a given Range. The strategy is often linked with a Deposit for Yield enhancement purposes.
A Range is specified by the customer over a fixed period. A Premium is paid up front and provided that the Spot stays within the Range (as monitored on a 24-hour Basis), then a multiple of the Premium invested Will be payable. A rebate Range binary is one in which the Premium invested is rebated if a designated boundary of the Range is breached first. A similar structure, the Limit binary, is also essentially for trading. This is fundamentally a bet on a Spot not staying within a predetermined Range. The customer specifies two Spot rates, one above and one below the current Spot rate. A Premium is paid up front, and providing that both levels trade (as monitored on a 24-hour Basis), a fixed multiple of the Premium invested Will be payable.

See also Trigger condition
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