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Binary options straddle explained

Discussion in 'Education, Tutorials & Courses' started by ForexLive, Apr 20, 2016.

  1. ForexLive

    ForexLive Forum Member

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    What is a straddle? A straddle means two transactions sharing the security, including positions offsetting one another. One of the operations is responsible for extended risk, the other for short. As a consequence, it involves the buying or selling of option derivatives that give the holder access to profit according to the moves in the price of the underlying security, with no regard to the direction of price change. The buying of particular option derivatives is called a long straddle, and the selling of the option derivatives is referred to as a short straddle.

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