Trading Strategy: The Long Straddle
The long straddle is commonly used over news announcements and major economic events to trade an increase in volatility. To execute this strategy with the easyMarkets platform, you buy a Put and Call at the same time with the same strike, expiry, and amount. This results in a profit if the market moves in either direction; the Put option will bring a profit if the market falls and the Call option will bring a profit if the market rises.
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