Strategy “Strangle”
“Strangle” is one of the simplest binary options strategies, so it is mainly used by novice traders, albeit professionals, in order to reduce the risks of a financial portfolio.
How to trade with the “Strangle” strategy
The “Strangle” strategy is based on the assumption that the binary options market allows you to open opposite trades at the same time. A trader can open a trade to buy a PUT and a Call at the same time. The time of execution of the transaction (expiration) may be different. This strategy reduces risks and increases profits.
Chart of the binary strategy “Strangle”
Reduce:
- Lower TB is the lowest break-even point.
- The top of TB is the upper break-even point.
- Qi Put is the strike price of the purchased Put option.
- Qi Call is the strike price of the purchased call option.
To trade with this strategy, a trader does not need to use technical indicators. All you need is to follow the economic news. The best results can be seen during the release of important economic news. The strategy is designed to earn money on rising prices for underlying assets or on falling prices. Opening trades in different directions will make it possible to increase profits or reduce losses.
Benefits of the strategy
- Profit can be made regardless of the direction of price movement.
- Limited risks.
Disadvantages of the strategy
- To make a profit, the price of an asset must change significantly
Strategy “Strangle” at the broker FiNMAX
Comfortably work with strategy signals in the terminal of the FiNMAX broker, while getting a good income. Advantages of the trading platform: the availability of the necessary tools, a guarantee of high profits, a simple personal account, quick withdrawal of funds, transaction history, up-to-date analytics. You can see what the terminal workspace looks like in the image below. By choosing a FinMax broker, you increase the efficiency of your work on the strategy at times!
A detailed review of the FiNMAX broker is here.
Go to the official website of the FiNMAX broker here.
In order to purchase a
CALL
option in the FiNMAX trading terminal, follow these steps by going to the finmaxbo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to purchase a
PCI
option in the FiNMAX trading terminal, follow these steps by going to the finmaxbo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
FiNMAX broker bonuses
The official FiNMAX website constantly holds promotions and contests for its users, which you can get acquainted with here. By trading with bonuses, you save personal capital and work much more efficiently.
Tournament on demo accounts from FiNMAX
Free tournaments of the official FiNMAX website are held for market players with any trading experience who have a demo account on the broker’s platform. The tournament supports talented traders, giving them the opportunity to get real money for further trading without replenishing the deposit. This money can be withdrawn in any convenient way or traded on the site.
Participate in the FiNMAX tournament
Findings
The “Strangle” strategy is suitable for all traders, does not require prior knowledge. It is often used by professionals to reduce risks. Novice traders can also make significant profits with minimal risk.
Tagged with: Binary Options Strategies on the News • Binary Options Strategy
