Lesson 4 of 1625% Complete

Stays Between/Goes Outside: Trading the Path Range

Intermediate22 min2025

Can you lock the market inside your price boundaries for the entire trade duration? The Stays Between/Goes Outside contract is a Path-Dependent Range Option where the outcome is determined by the market price's movement relative to two user-defined Barriers at any point between execution and expiry. Touching either barrier results in immediate settlement - the contract doesn't wait for expiry.

Welcome to Lesson 4

You've mastered directional prediction (Rise/Fall), single-barrier targeting (Higher/Lower), and expiry range contracts (Ends Between/Ends Outside). Now you'll learn path-dependent range trading - where the journey matters more than the destination.

The power of instant settlement: Unlike other contracts that wait for expiry, Stays Between/Goes Outside can terminate immediately when barriers are touched, offering unique profit opportunities and risk management.

Strategic Insight: Stays Between wins in ultra-calm markets where price barely moves. Goes Outside wins when you expect explosive volatility that will quickly reach distant price targets. The early termination feature transforms your trading rhythm from "wait and see" to "instant profit."


Lesson Chapters

1Chapter 1: Introduction and Definition

🎯 Path-Dependent Range Mechanics

Stays Between/Goes Outside is a Path-Dependent Range Option. The outcome is determined by the market price's movement relative to two user-defined Barriers at any point between execution and expiry. Touching either barrier results in immediate settlement.

Two Contract Types:

  • Stays Between: You predict the market price will NEVER touch the High or Low Barrier throughout the contract duration
  • Goes Outside: You predict the market price will touch (or exceed) either the High or Low Barrier at least once before expiry

Key Difference from Ends Between/Ends Outside:

  • Path-Dependent: Checks price movement throughout the entire contract duration
  • Early Settlement: Contract terminates immediately when barriers are touched
  • Instant Results: No waiting for expiry - win or lose happens the moment price hits a barrier

⚡ Early Termination Advantage

The early termination feature creates unique trading opportunities:

For Goes Outside:

  • Win instantly when price touches either barrier
  • No need to wait for expiry
  • Immediate profit realization allows for faster capital turnover

For Stays Between:

  • Lose instantly if price touches either barrier
  • Forces you to be extremely selective about market conditions
  • Requires near-perfect volatility prediction

Strategic Implication: This contract type rewards traders who can accurately predict not just direction, but the timing and magnitude of price movements.

Ready to practice?

Test with virtual funds

2Chapter 2: The Mechanism

🎲 Dual Barrier Path Mechanics

This contract uses a High Barrier and a Low Barrier, set by offset from the current price.

Stays Between Win Condition:

  • Price remains strictly between the Barriers until expiry
  • If a barrier is touched at any time, it's an immediate loss
  • Requires perfect price containment

Goes Outside Win Condition:

  • Price touches either the High or Low Barrier
  • If a barrier is touched, it's an immediate win
  • Contract terminates early upon barrier contact

Loss Conditions:

  • Stays Between: Loss occurs instantly upon touch
  • Goes Outside: Loss occurs only if price fails to touch either barrier by expiry

🎯 Stays Between Scenarios in Action

Stays Between Success

Price stays within barriers = Win at Expiry

Price stays within barriers = Win at Expiry

Stays Between Failure

Price touches barrier = Instant Loss

Price touches barrier = Instant Loss

🎯 Goes Outside Scenarios in Action

Goes Outside Success

Price touches barrier = Instant Win

Price touches barrier = Instant Win

Goes Outside Failure

Price stays within barriers = Loss at Expiry

Price stays within barriers = Loss at Expiry

⏰ Time vs. Touch Dynamics

Path-Dependent Monitoring:

  • System continuously monitors price against barriers
  • No waiting for specific time intervals
  • Instant reaction to barrier contact

Early Settlement Logic:

  • Goes Outside Win: Contract closes immediately with full payout
  • Stays Between Loss: Contract closes immediately with total loss
  • No Settlement: Contract continues until expiry if barriers aren't touched

Strategic Timing:

  • Goes Outside benefits from longer durations (more time to reach barriers)
  • Stays Between benefits from shorter durations (less time for price to wander)

Apply What You've Learned — Master Stays Between/Goes Outside Trading in Action

Practice volatility-based range strategies

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3Chapter 3: Key Features and Flexibility

🔧 Contract Parameters

FeatureDescription
AssetPrimarily traded on Synthetic Indices for their clear volatility environments
DurationFlexible, but early termination makes longer durations suitable for Goes Outside
Payout StyleFixed Payout - Stays Between offers lower payouts (higher probability)
Unique ConditionPath-Dependent with early settlement capability

Duration Strategy:

  • Goes Outside: Longer durations give market more time to reach barriers
  • Stays Between: Shorter durations reduce exposure to unexpected volatility

📊 Payout Dynamics

Stays Between Payouts:

  • Lower payout percentages (reflecting higher probability)
  • Suitable for calm, low-volatility market conditions
  • Risk: Instant loss if price touches barriers

Goes Outside Payouts:

  • Higher payout percentages (reflecting lower probability)
  • Suitable for volatile, breakout-prone market conditions
  • Reward: Instant win if price touches barriers

Early Settlement Benefit:

  • Goes Outside winners get immediate capital return
  • Faster position turnover increases trading efficiency
  • Reduced overnight risk exposure

Practice Contract Parameters

Test different barrier widths and durations to understand payout dynamics.

4Chapter 4: Risk and Reward Profile

🛡️ Risk Profile

Risk Characteristics:

  • Limited Risk: Loss is strictly limited to your initial Stake amount
  • Instant Loss: Stays Between contracts lose immediately upon barrier touch
  • Path Sensitivity: Even brief barrier contact results in total loss

Risk Management Considerations:

  • Stays Between requires near-perfect volatility prediction
  • Goes Outside requires accurate timing of breakout moves
  • Early termination can work for or against you

💎 Reward Profile

Stays Between Rewards:

  • Lower reward for higher certainty
  • Only achievable in extremely low-volatility, calm markets
  • Suitable for range-bound, sideways market conditions

Goes Outside Rewards:

  • Higher reward for lower probability
  • Trades on expectation of sudden, strong market spikes
  • Benefits from explosive breakout scenarios

Early Settlement Advantage:

  • Instant profit realization for Goes Outside winners
  • Faster capital turnover increases overall profitability
  • Reduced time exposure to market risk

Risk Warning: The Stays Between contract is highly sensitive. Even a small, brief fluctuation that touches the Barrier results in an immediate loss. Only use this contract when market flatness is nearly guaranteed.

Practice Risk Management

Understand the reward profiles and practice with proper risk management strategies.

5Chapter 5: Best-Use Scenarios

✅ Stays Between Perfect Use Cases

Extreme Low Volatility Scenarios:

  • Market Flatlining: When price is essentially moving sideways with minimal fluctuation
  • Pre-News Calm: During quiet periods before major announcements
  • Weekend Gaps: When markets are expected to remain stable
  • Range Consolidation: During extended periods of price containment

Market Conditions:

  • Volatility indices showing extremely low readings
  • Price action confined to very tight ranges
  • Minimal economic calendar activity
  • Low-volume trading sessions

Success Factors:

  • Requires near-perfect volatility prediction
  • Suitable only for experienced traders
  • High risk due to instant loss on barrier touch

✅ Goes Outside Perfect Use Cases

High-Momentum Spike Scenarios:

  • Breakout Anticipation: When expecting massive directional movement
  • News Events: Before major economic announcements
  • Technical Breakouts: When price approaches key support/resistance levels
  • Volatility Expansion: During periods of increasing market volatility

Market Conditions:

  • Volatility indices showing high readings
  • Price approaching significant technical levels
  • High-impact news events scheduled
  • Market tension building in consolidation patterns

Success Factors:

  • Benefits from explosive price movements
  • Early settlement provides instant profit
  • Suitable for momentum-based trading strategies

🎯 The Pre-Breakout Tension Strategy

Strategy Overview: When the market has been consolidating in a tight, observable range for a long time (building tension), place a Goes Outside trade with barriers set just outside the range.

Execution Steps:

  1. Identify a prolonged consolidation pattern
  2. Set barriers just outside the consolidation range
  3. Choose longer duration to allow for breakout
  4. Execute Goes Outside contract
  5. Wait for inevitable high-momentum breakout

Why It Works:

  • Consolidation creates pent-up energy
  • Breakouts often exceed initial range boundaries
  • Early settlement captures profit immediately
  • Reduces exposure to post-breakout volatility

Apply Best-Use Scenarios

Practice the Pre-Breakout Tension Strategy and test different market conditions.

6Chapter 6: Step-by-Step Trade Execution

📋 Complete Execution Workflow

Step 1: Select Contract Type

  • Navigate to TradeOptionsDigital Options
  • In contract type dropdown, select "In/Out"
  • Then select "Stays Between/Goes Outside"

Step 2: Set the High Barrier

  • Locate "High barrier offset" input field
  • Enter positive value (e.g., +1.00)
  • Platform calculates: High Barrier = Current Price + 1.00

Step 3: Set the Low Barrier

  • Locate "Low barrier offset" input field
  • Enter negative value (e.g., -1.00)
  • Platform calculates: Low Barrier = Current Price - 1.00

Step 4: Choose Duration and Stake

  • Select expiry time (e.g., 30 Ticks or 5 Minutes)
  • Enter your stake amount
  • Review the payout percentage displayed

Step 5: Execute Contract

  • Click "Buy Stays Between" (betting price stays within barriers)
  • OR
  • Click "Buy Goes Outside" (betting price touches barriers)

Step 6: Monitor for Early Settlement

  • Watch for instant termination if barriers are touched
  • Goes Outside wins terminate immediately upon barrier contact
  • Stays Between losses terminate immediately upon barrier contact

⚡ Early Settlement Monitoring

Real-Time Monitoring:

  • Contract status updates instantly when barriers are touched
  • No need to wait for expiry time
  • Immediate profit/loss realization

Goes Outside Early Win:

  • Contract closes immediately with full payout
  • Capital becomes available for next trade
  • Faster position turnover increases efficiency

Stays Between Early Loss:

  • Contract closes immediately with total loss
  • Risk management: Limit position size accordingly
  • Learn from barrier touch patterns

Strategic Advantage:

  • Early settlement provides immediate feedback
  • Allows for faster strategy adjustment
  • Reduces overnight risk exposure

Practice Step-by-Step Execution

Follow the complete workflow and practice early settlement monitoring.

7Chapter 7: Common Mistakes and How to Avoid Them

❌ Path Confusion Mistakes

Common Mistake: Accidentally using Stays Between during volatile times

Why It Happens:

  • Confusing path-dependent with expiry-dependent contracts
  • Not recognizing current market volatility levels
  • Misunderstanding instant loss mechanism

How to Avoid:

  • Use Ends Between instead for volatile ranging markets
  • Check volatility indices before choosing Stays Between
  • Understand that even brief barrier contact causes instant loss
  • Practice with demo account to experience instant termination

❌ Goes Outside Duration Mistakes

Common Mistake: Setting duration too short for Goes Outside trades with wide barriers

Why It Happens:

  • Underestimating time needed for price to reach barriers
  • Not accounting for market consolidation periods
  • Focusing on payout percentage rather than probability

How to Avoid:

  • Give market enough time to complete the move
  • Consider current volatility levels when setting duration
  • Use longer durations for wider barrier distances
  • Test different duration/barrier combinations on demo

📊 Contract Comparison Table

FeatureStays Between/Goes OutsideEnds Between/Ends OutsideTouch/No Touch
BarriersTwo (High & Low)Two (High & Low)One (Custom Barrier)
Win CheckPath-Dependent (Touch/No Touch)Expiry Spot OnlyPath-Dependent (Touch/No Touch)
Key MechanismEarly SettlementFixed Expiry SettlementFixed Expiry Settlement

Key Differences:

  • Path vs. Expiry: Stays Between/Goes Outside monitors entire path, others only check at expiry
  • Early Settlement: Only Stays Between/Goes Outside can terminate before expiry
  • Settlement Timing: Instant vs. fixed expiry timing

Practice Avoiding Common Mistakes

Test different scenarios and market conditions to avoid common pitfalls.

8Chapter 8: Demo Challenge Task

🎯 Your LeTechs Demo Task: Test Early Termination

Objective: Experience the instant settlement mechanism of path-dependent contracts.

Step-by-Step Challenge:

  1. Switch to Demo Account and select a Volatility Index (e.g., Volatility 75)

  2. Place Goes Outside Contract:

    • Set narrow barriers (e.g., +/- 0.1 points)
    • Choose 1-minute expiry
    • Use small stake amount
  3. Observe Early Termination:

    • Wait for price to move
    • If price touches a barrier before 1-minute mark, trade should close immediately with a win
    • Note the instant settlement time
  4. Reflection Questions:

    • How does early profit realization change your trading rhythm?
    • What are the advantages of instant capital return?
    • How can you use this for faster position turnover?

💡 Advanced Challenge Variations

Variation 1: Stays Between Test

  • Set very narrow barriers during low volatility
  • Experience instant loss on barrier touch
  • Understand the sensitivity of this contract type

Variation 2: Barrier Width Impact

  • Test different barrier distances
  • Observe payout percentage changes
  • Understand risk/reward relationship

Variation 3: Duration Optimization

  • Test shorter vs. longer durations
  • Find optimal timeframes for your strategy
  • Balance between opportunity and risk

Complete Demo Challenge

Practice early termination mechanics with the challenge task.

Summary

Key Principles (0/4)

Path-Dependent Early Settlement
Stays Between/Goes Outside is a path-dependent option that can settle before expiry
Stays Between Strategy
Stays Between bets on price never touching barriers (ultra-low volatility)
Goes Outside Strategy
Goes Outside bets on price touching barriers, offering instant profit potential
Early Settlement Advantage
Early settlement transforms trading rhythm from "wait and see" to "instant profit"

Quiz

What happens when a Stays Between contract touches either barrier?

Answer:

The contract terminates immediately with a total loss. Unlike other contracts that wait for expiry, Stays Between/Goes Outside monitors the price path continuously and settles instantly upon barrier contact.

Which contract type benefits from longer durations and why?

Answer:

Goes Outside benefits from longer durations because it gives the market more time to reach the barriers. The contract only wins if price touches either barrier, so more time increases the probability of this happening.

What is the key difference between Stays Between/Goes Outside and Ends Between/Ends Outside?

Answer:

Stays Between/Goes Outside is path-dependent and can settle early when barriers are touched, while Ends Between/Ends Outside only checks the price at expiry and settles at the fixed time regardless of path movement.

When should you use Stays Between contracts?

Answer:

Only during extremely low volatility periods when you're confident the price will remain flat. Even brief fluctuations that touch barriers result in instant loss, making this contract highly sensitive to market conditions.

🚀 LeTechs Insight

Master the Path, Not Just the Destination: Stays Between/Goes Outside teaches you that in trading, the journey matters as much as the destination. By monitoring price movement throughout the contract duration, you gain insights into market behavior that other contract types can't provide. The early settlement feature isn't just a technical detail - it's a strategic advantage that transforms how you think about time, risk, and profit realization.

Practice Path-Dependent Trading

Master the art of instant settlement with Stays Between/Goes Outside contracts.

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