Range Option is a type of Binary option that is neither call nor a put option that gives the traders specific payoff if the underlying currency remains within a predetermined price range by the option expiration.
Binary Range Options are attractive holdings for investors who believe that a currency will not change within a given trading price and that’s why they are ready to risk a recognized and predefined premium to get a particular maximum return. So both the payoff and risk are known in advanced.
Binary Range Options give many benefits. It gives a buyer the ability to profit from a reduction in volatility. With traditional put and call options it is only the seller of an option who can benefit in the event volatility contracts. Binary Range Options offer the buyer similar benefits that sellers of traditional options may avail themselves of without the necessary higher suitability or credit requirements.