The Straddle – Binary Option Trading Strategy

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Straddle is a trading strategy that can be used in volatile market conditions. The strategy is very often used by experienced traders who're trying to limit their risk and gain the maximum profit out of moving markets. The straddle, is one of the widely used strategies.

It can be complex to use but is regarded as one of the best trading strategy to survive and profit in volatile market conditions. Idea behind the straddle strategy is to place put and call option on the same underlying asset with the same expiration time. High fluctuations of market provide opportunity of placing call and put option on the same asset. However, this binary option strategy requires advance awareness of financial markets.

This way a trader can place orders on both: Price fluctuations within the boundaries can double the profit. However if price exceeds any limit of the boundary, one of the options placed will still be in the money. Trading straddle benefits from volatile nature of market and mostly those who love aggressive trading like the strategy as well. A trader might use the straddle trading strategy if he thinks that market will behave in one of the following three manners:.

Considering that market is fluctuating and change is volatile. Investor might use straddle option to overcome the situation. Investor places a put option. Similarly, call option is being placed at the lowest observed point of Doing this will ensure that in any case trader is going to profit.

If market price remains within The best way to execute this strategy is to start an investment by purchasing any one of the options call or put with long expiry, observed market and wait it out to purchase your next option. This strategy is highly yielding and limits the risk.

The Straddle - Binary Option Trading Strategy Straddle is a trading strategy that can be used in volatile market conditions. A trader might use the straddle trading strategy if he thinks that market will behave in one of the following three manners: Supposing that the perceived fluctuations will significantly move up in a short while.

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