Skip to content

ForexGen ForexGen
You are here:ForexGen arrow Forex Academy arrow Professional arrow News Trading Methods
News Trading Methods PDF Print E-mail

Straddles

Straddles are really easy to set up and require very little thinking, but it is probably the riskiest method of trading the news. To set up a straddle, you basically put a limit order to go long a few pips above the market before a news report, and simultaneously put in a limit order to go short a few pips below the market. If the report creates enough volatility your orders will be automatically triggered, and your stops and profit levels will also be automatically executed if hit. Simple as that.

 

There are two types of the Straddles:

 

Long Straddle:

A long straddle involves going long (i.e. buying) both a call option and a put option on some stock, The owner of a long straddle makes a profit if the underlying price moves a long way from the strike price, You may take a long straddle position if you think the market is highly volatile, but does not know in which direction it is going to move.

Short Straddle:

The short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration dateThe profit is limited to the premiums of the put and call, but it is risky if the underlying security's price goes up or down much.This strategy is called "nondirectional" because the short straddle profits when the underlying security changes little in price before the expiration of the straddle.
 
< Prev   Next >
[ Back ]

User Login






  New User
Lost Password?

Control Panel

Request A Call Back
Download Platform
Trading Academy
My Account
News Center
Customer Care
ForexGen FAQs

Popular

Partnership



Start Trading Now With Forexgen

Live Chat

Chat with us now

FX QUOTES

Quotes informer:

Search ForexGen

Accounts

Open A Demo Account
Open A Live Account
Open Institutional Account

Promotions

ForexGen Contests
ForexGen Promotions
Refer A Client

Visitors Popular Searches

forex, forex trading, forex broker, online forex trading, forex market, forex trading software, forex trading system, forex trade, forex software, forex currency trading, forex currency trading system, forex seminar, currency forex online trading, forex online system trading, forex trader, learn forex, forex chart, forex trading platform, forex trading education, currency forex learn online trading, online forex, forex signal, forex news, online forex trading platform, forex trading strategy, forex loan online trading, mini forex trading, forex option, forex exchange, forex training, global forex trading, forex rate, learn forex trading online,business forex online trading, forex trading signal, forex profiting, forex book, forex trading software online, managed forex account, free online forex trading course, broker forex trading, genuine online trading forex, forex day trading, forex system, commodity forex online trading, forex custom indicator, learn forex trading, forex india online trading, forex in india online trading, free forex chart, easy forex, forex online option trading, online forex broker, forex information, global forex, forex factory, forex stock trading, forex scalping, day forex tactic technique thirty trade trading trading wiley, course forex online trading, learn to trade the forex, forex online platforms rating trading, forex trading course, forex real time, forex online strategy trading trading weekly, forex trading training, forex forecast, forex capital market, forex strategy, forex day trading system, forex exchange rate, beat forex from high identify in market odds pattern percentage profit trading trading wiley, forex data, forex investment, forex made easy, managed forex, forex trading style, forex forum, spot forex, forex course, forex currency, forex tutorial, forex education, forex quote, free forex signal, forex stock, forex charting, forex cargo, acm forex, forex forex forex seminar, forex demo, enterprise forex, forex converter, money forex, exchage forcast forex, forex made easy,ways to trade the dollar, forex platform, forex currency trading beginner, forex mini, forex signal system trading, noporn 

RSS News