What is a Tunnel Bet and How Does it Work

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Types of Binary Bets: Tunnel

The Tunnel binary bet is a type of binary options trade where the trader purchases a contract to bet on whether the price action of the asset he has bought will stay within a price range, or break out of that price range. The Tunnel binary trade is also known as the boundary binary trade or the In/Out binary trade.

Now it is important to mention here that there are two variations of the In/Out bets. A few brokers offer both varieties, but most will only offer the conventional variant. These variants are:

– Stays between/Goes outside

– Ends between/Ends Outside

In the first variant, if the trader selects “stays between”, the price has to stay within the tunnel but does not touch any of the price barriers that mark the boundaries of the tunnel throughout the duration of the trade. If he selects “goes outside”, then the price has to touch either barrier before trade expiration for the trade to end in profit.

The second variant is the conventional tunnel trade where the price has to be within the price barrier on expiration, or strictly outside either the top or the bottom price barriers on expiration.

How does this trade setup work?

Firstly, the trader has to setup the trade by selecting the asset he wants to trade. After that, the next thing is to select the price ranges that would create the “tunnel”. This consists of a price ceiling, and a price floor. Once this is done, the next thing is to select the expiration time for the trade, and then select the trade direction which in this case, would be either in the tunnel (IN), or outside the tunnel (OUT). Once this is done, the trader can then execute the trade.

Now it seems pretty easy right? Yes, it seems and sounds easy in theory, but the practice of this trade is a different reality.

For an “In” trade to be successful, the trader has to basically assume that the price will remain in a state of consolidation. In other words, the asset has to be range-bound or trading sideways without any defined trend. This trade condition usually exists before a major news event is to occur in the market. The markets are usually unpredictable and there is no way of knowing with certainty that the price of the asset will remain range-bound until your trade expiry. The situation is made more difficult by the fact that some brokers do not allow traders to set expiry dates at anything less than 5 to 7 days for a tunnel trade; giving a seemingly range-bound asset time to experience a major trigger to breakout and neutralize the trader’s position.

On the other hand, the asset has to experience a major breakout to put the trader’s position in the money. Brokers will generally give a better payout if you stretch the boundaries of your tunnel. So for an “OUT” trade, it is a case of stretching the tunnel boundaries for better payouts, or limiting the boundaries to get a smaller payout. Even in these instances, it is not guaranteed that the breakout needed for this trade to succeed will occur.

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So how can a trader profit from the tunnel trade? Picture this image above, which is a depiction of the tunnel trade. The yellow area is the tunnel, which is where the “IN” trader would want his asset to end up on expiration. The green and blue areas are where the “OUT” traders hope the asset would end up. You can use the trade definitions above to understand how to map your trade strategies out.

There are various ways of trading the tunnel binary bet. One school of thought likens the image above to a dart board, where it is more difficult to hit the yellow area than either the green or blue area. This trade type will then aim to use the “goes outside” strategy to pick a trade.

Recall that you only need the market price to touch any of the barriers just once during this trade. Please note that this is not to be confused with the Touch/No Touch binary where the trader has to define the price barrier to be touched. In this binary trade example, the trader does not need to define which barrier must be touched. All that is needed is for any of the two barriers to be touched for the trade to succeed.

VPN tunnel: What is it and how does it work?

A Virtual Private Network (VPN) tunnel is an encrypted link between your computer or mobile device and an outside network. In 2020, CNET reported that around 16 per cent of Australians were using a VPN to protect their privacy online 1 .

A VPN tunnel allows for your IP address to be hidden and encrypts all data you generate while using the web.

But why is this so important?

Much like your home address, an IP address identifies your location while online. Whether you are using your smartphone, laptop, computer, or tablet, your online activity can easily be tracked by potential threats. This means without a VPN, businesses, government bodies, or even hackers, have access to your personal information and browsing activity.

Are you worried yet?

Don’t fret; if you are prepared, you can maintain your safety. A VPN acts similar to a shield, protecting you from harms way.

Using one is highly recommended when you’re logging onto the internet using public Wi-Fi at hotels, coffee shop, or library.

How does VPN tunnelling work?

To connect to the internet through a VPN tunnel, you’ll first have to sign up with a virtual private network service, better known as a VPN. The VPN is the key to hiding your IP address and hiding your information from predators.

Before visiting websites, you’ll log into your VPN provider’s service. When you then start searching online, the websites you visit and your internet service provider — ISP, for short — won’t see your IP address. Instead, they’ll see the IP address of your VPN provider, helping to protect your privacy.

Put simply, when you click on links or download files from a site, no one will be able to see this activity. Figuratively, your VPN provider has built a tunnel around your online activity, providing a barrier between it and everyone else.

Using a VPN alone may not be enough to protect your online privacy. That’s why you need a VPN provider that takes further measures to encrypt the data you send and receive while you are online. When your data is encrypted, it is scrambled, preventing external bodies from interpreting and deciphering it.

When you enable this added layer of protection, businesses, governments, or even hackers, won’t be able to track your online activity.

Hiding your IP address and encrypting the data you send and receive is a powerful combination to help keep your online browsing sessions private.

VPN tunnel protocols

Not all VPN tunnels are equally effective in protecting your online privacy. The type of tunnelling protocol your VPN provider uses determines the strength of the tunnel.

Outdated protocols may provide weaker data encryption, reducing your defence against internet spies. It is imperative to choose a VPN provider that use adopts the most robust tunnelling protocol possible.

PPTP – A Hacker’s Prey

Point to Point Tunnelling Protocol (PPTP) is a dated version, that is still in use today. It may be incredibly fast, but this is at the expense of strength and protection.

The data encryption is weakened alongside its lightning-fast speed, meaning it is much easier for external parties to prey on your details.

This form is ‘dated’ for a reason; therefore, stronger levels of protection are encouraged.

L2TP/IPSec – Tortoise-speed Net Surfing

Layer 2 Tunnelling Protocol (L2TP), combined with Internet Protocol Security (IPSec), provides slightly stronger protection. This protocol offers two stages of protection – explaining its name. L2TP and IPSec portions of this protocol create their encryption, resulting in two layers of safety.

The downside? This type of tunnelling protocol, because of the two layers of encryption, can result in slower online connection speeds. Additionally, L2TP/IPSec used fixed ports, meaning it sometimes get blocked by firewalls.

SSTP – A Small Window of Opportunity

Secure Socket Tunnelling Protocol (SSTP) is unusual because it is only available on Windows operating systems. This type of tunnelling doesn’t use fixed ports, so can easily pass through firewalls. Its protocol is very secure, making it a safer choice. It also doesn’t use fixed ports, so it’s easier for SSTP to get through firewalls.

The problem, of course, is the ‘small window of opportunity’ in operating system choice. This protocol, being limited to Windows only, blocks out a lot of potential users.

OpenVPN – Your Best Bet

If you’re looking for the most reliable protection while online, you should consider investing in a VPN service provider that relies on the OpenVPN protocol.

This protocol overcomes the limitations with SSTP by being able to use all major operating systems, Linux, Window, and Mac, on the mobile operating systems of Android and iOS. An Open VPN is suitable even for an independent operating system, such as FREEBSD, NetBSD, Solaris, or OpenBSD.

OpenVPN is considered the best form of VPN tunnelling protocol due to its ability to pass through firewalls and strong encryption capabilities. Depending on your provider, OpenVPN can also transfer information at fast speeds.

Protecting your privacy while online

The key to VPN tunnelling is to actually use the service. It is integral to first connect to your VPN provider before accessing the internet. Skipping this step will mean your identity or personal data at risk.

In 2020, the ABC (Australia Broadcasting Corporation) reported that Australian internet service providers (ISPs) are required to collect and store their customer’s metadata for a minimum of two years 2 . This metadata includes information such as all your personal details associated with your account, your IP address and the destination of all your communications.

To ensure you’re completely protected, it is essential to enable VPN protection across all your devices. You may use the best VPN on your laptop, however, failing to utilise on your other devices will still leave you susceptible to internet threats.

The bottom line? VPN tunnelling is essential in this day and age to maintain online privacy (just make sure you’re logged into it first).

Using cannabis to relieve carpal tunnel syndrome

It turns out, certain people in the cannabis business are more prone to carpal tunnel syndrome than others in the industry. Trimmers suffer the most due to the detailed, repetitive nature of their work. People around the world get carpal tunnel, however, from typing, being a chef, a checker or even by a case of bad luck.

The carpal tunnel is a thin tube in your wrist, pretty much from elbow to palm of the hand, that houses the median nerve, which becomes inflamed when the syndrome kicks in. Fortunately, cannabis is here to save the day yet again.

The NSAIDs or corticosteroids that are commonly used to treat the pain associated with carpal tunnel have side effects that range from weight gain and easy bruising to osteoporosis. On the other hand (no pun intended) cannabis’ side effects are short term and include an increase in appetite, dry mouth and the potential for giggles. CBD has no side effects at all. However, depending on the severity of your carpal tunnel, you still may need to wear a splint to bed in order to combat the numb, tingling feelings.

Another problem with using the anti-inflammatories like NSAIDs and steroids is that your body builds up a tolerance to them over time. This can lead to stronger painkillers, more discomfort and an increased moodiness. Cannabis is a known anti-inflammatory and though you may build up a tolerance if you’ve never tried it before, it evens out pretty quickly. Let’s say in a matter of weeks, though it certainly varies from person to person.

Cannabis is a natural remedy for inflammation in soft tissues, for nerve damage and for joint pain—all associated with carpal tunnel syndrome. It makes the most sense to use a substance that’s able to relieve the three symptoms of carpal tunnel and that has additional benefits like mood elevation and the alleviation of other aches and pains. If you’re using a topical cannabis product, however, it will be non-psychoactive, but it will work wonders.

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