As the name suggests straddling an asset refers to placing trades in order to cover both sides at once. This is one of the main reasons that the straddle is often confused with hedging, which also calls for the purchase of CALL and PUT options.
The main difference between straddling and hedging strategies is that in the case of straddling the two conflicting options are not placed at the same time or even close together, but rather they are placed at the respective top and bottom of the trend being monitored.The above screenshot is a perfect example of a straddle strategy being deployed efficiently and profitably.


As a result both trades close in the money.As you can see straddling can be a very useful tool to capitalise on particularly volatile markets and also to cushion potential losses on a trade that is looking like it may be expiring out of the money. The downside of the straddle is that it only becomes useful in certain very specific situations that are not as forthcoming in times of low volatility.
Promoting and guiding new traders to the binary options market is Nancy''s way of saying "thank you" to the industry that helped her realise her dreams.





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