W.G. Hill Books, Underground Knowledge, Offshore Banking and Investing
Page: TorOption: Placing binary options straddle trades

How to Place Binary Options Straddle Trades

Placing calls and puts using binary options straddle strategy

Binary options are an alternative to more traditional types of trading. Multiple bets can be made on a variety of assets including stocks, commodities, currencies, and indices. Traditional option strategies can also be applied to binary options trading. In this article, we discuss the straddle strategy.

What are binary options straddles

A straddle is when a call and put are bought on the same asset. By buying a call, the trader expects the asset to rise, while a put buyer bets on its decline. In some situations, the trader will make money on one side of the trade, while lose on the other. The issues arise when that straddle trade isn’t profitable.

Let’s say you bet $100 on gold’s rise with a payout of $80, and bet another $100 on its fall with the same payout. Now, if gold rose, you’d get $180 back, but on the investment of $200, resulting in a loss of $20. One way to go around it is to bet more on the side you feel is more likely to occur. By betting $200 on a call and $100 on a put, you’d get $360 from a call while paying $300 overall, a profit of $60.


Instead of more traditional type of trading, binary options straddle strategy helps you buy a call and put
on the same asset.

Using technical analysis to place straddle orders

Another way to use straddles is to buy calls and puts at different times based on a price action. This, like most trading, involves technical analysis. A trader can look at a chart and see that a price of an asset reaches a peak and is expected to fall. This prediction can be made by looking not only at charts but also at other indicators.

For example, a trader sees that the asset reaches its resistance level (a point at which price of it bounced back in the past.) At the same time, the short-term moving average crosses below the long-term average, meaning the upward trend is losing momentum. This is further confirmed by falling Relative Strength Index (RSI). Based on these circumstances, a trader sees a high likelihood of a decline. This is when a put option is bought.

To continue with this example, when a price approaches the bottom on the charts (a support level at which prices bounce), while moving average reverses (short-term average rising above long-term average) and RSI starts to turn around, a trader buys a call on the same asset. With this setup, the binary options trader hopes to first make gains with a put and then a call.

Betting on volatility straddle strategy

Yet another straddle strategy involves betting on volatility. This includes using One Touch options such as those offered by TorOption. One Touch options are different from other binary options (whether these are 60-second, 5-minute, or long-term options). While with latter options the trader needs to wait until their expiration, with One Touch options the price needs to reach certain level prior to expiration in order to result in a payout.

So, if a trader buys call and put One Touch options, and the volatility goes in both directions during the time the options are active, a winning on both sides takes place. Here it’s not only necessary to predict correctly how volatile the price will be, but also the time period during which it will happen. And it needs to happen prior to options expiration.

Still another strategy bets on little volatility. Here a trader makes bets on both sides (up and down) that the price will not reach certain levels, but rather will stay within a narrow band. With options, it is possible to make money whether asset goes up, down, or stays the same- but a right bet must be made.

When your binary options broker doesn’t allow straddle trading

Some online binary options brokers don’t allow certain straddles. But, traders have other alternatives to deal with it. It involves opening an account with two brokers, and then placing a call with one broker and a put with the other one.

Having more than one broker is beneficial by having access to more than one trading system. Different brokers provide different tools, and even different binary options types. By combining two systems, traders get access to expanded trading opportunities, customer service, technical trading tools, and analysis.

There are also trades that seek to take advantage of concepts in binary options trading without actually buying both puts and calls on the same asset. For example, let’s take an American dollar and commodities. Since many commodities are priced in dollars, often a rise in a dollar with depress commodity prices, and vice versa.

In that case, a trader can see a rising dollar and buy a call on it. At the same time, put on gold or oil is bought. This way, a winning bet is possible on both sides.

Binary options trading offers many options, while limiting risk. Traders can make straddle bets with as little as $20- a great way to start for many novices.

  Forex Trading Strategies Explained
Forex Trading Courses
Automated Trading System
Basic Tools for Trading
Best Forex Books for Beginners
Binary Options Straddle
Binary Options Strategies
The Blade Runner Trading Strategy
The Camarilla Equation
Day Trading vs Swing Trading
Elders Force Index Strategy
Forex Trading Platforms
The Gartley Pattern
Finding Forex Broker
Forex Fundamental News
Forex Market in Currencies
Forex Markets Trading
Forex Trading Account
Forex Trading Beginner Tips
Forex Trading Explained
Forex Trading Worldwide
International Currency Trading
Most Profitable Forex Indicator
Picking Forex Software
Retracement Levels
The 38.2% Retracement Level
Stochastic Oscillator in Forex
STP / ECN Trading Model
Support and Resistance Forex
Safe Haven Currencies
Successful Trader Traits

   Bye Bye Big Brother Black Book
   Bye Bye Big Brother CD ROM
   Bye Bye Big Brother Package
   Citizenship Residency Requirements
   Confidential Communication for PTs
   Paper PT An Important Concept
   What Is PT All About
   The American Expatriation Guide
   Become an Honorary Diplomat
   Brazil and Paraguay Confidential
   Campione Confidential
   ESCAPE by Grandpa
   Instant Legal Residence Abroad
   The Invisible Investor
   Latvia Confidential
   The Monaco Report
   Panama Confidential
   Perpetual Traveler
   PT4 Grandpas Special Collection
   Portable Trades and Occupations
   The Second Passport Report
   Think Like a Tycoon
   WG Hill PT Collection
Bye Bye Big Brother
BBBB Free Chapter
   Basics of Investing Your Money
   Collectibles Worth Investing In
   Cryptocurrency Business Ideas
   Guide to Investing in Debt Funds
   Investing in Penny Stocks
   Investment in UK After Brexit
   Investment Options for Beginners
   Investment Trends to Watch
   Investor Protection for Expats
   Low Risk High Return Investments
   Non-Dom Reforms for British Expats
   Overseas Family Led Investments
   Price of Crude Oil and Stock Market
   Protecting Investments in Bankruptcy
   All About Commercial Lending
   Bankruptcy As A Solution
   Banks Don't Need Your Money
   Basics of Business Branding
   Blockchain Impact on Business
   Business Cloud Software
   Business Financing Sources
   Divorce and Finances Abroad
   Fund Your Small Business
   Hire Business Plan Consultant
   Learn About Finance Online
   Manage Business While Travelling
   Solve Cash Flow Problems
   Forex Trading Courses
   Automated Trading System
   Use Basic Tools for Trading
   Best Forex Books for Beginners
   Binary Options Straddle Trades
   Binary Options Strategies
   Blade Runner Trading Strategy
   The Camarilla Equation Formula
   Day Trading vs Swing Trading
   Elders Force Index Strategy
   Top Forex Trading Platforms
   The Gartley Pattern Chart
   Finding Good Forex Broker
   Forex Fundamental News
   Forex Market in Currencies
   Forex Markets Trading
   Forex Trading Account
   Forex Trading Beginner Tips
   Forex Trading Explained
   Forex Trading Worldwide
   International Currency Trading
   Most Profitable Forex Indicator
   Picking Right Forex Software
   Retracement Levels in Flats
   The 38.2 Retracement Level
   Stochastic Oscillator in Forex
   STP ECN Trading Model
   Support and Resistance Forex
   Safe Haven Currencies
   Successful Trader Traits
   5 Benefits of Antigua Passport
   Costa Rica Offshore Corporation
   Dubai Offshore Banking
   Offshore Outsourcing Tips
   Stress Factors of Expatriates
   The 10 New Bali Project
   Hottest Real Estate Markets
   Real Estate Investment Online
   Return on Property Investment
   Smart Real Estate Investments
   Technology and Real Estate
   Ways to Invest in Real Estate
   Business of Investing in Wines
   Fine Wine as Loan Collateral
   Investing in Wine in Australia
   Start Wine Trading Business
   BBBB Abridged Book
   The Gold Report
   Offshore Banking Guide
   Offshore Road to Riches
   PT2 The Practice
   VIP Divorce Kit
   The Invisible World
   Invisible Banking
   High Yield Investments
   High Yield Investments 2
   Future Wealth
   Financial Crisis
   The Offshore Investment Guide
   Underground Knowledge 1
   Underground Knowledge 2
   Underground Knowledge 3
   Underground Knowledge 4
   Scams and Fraud
   Alan Greenspan's Housing Bubble
   America's Oversized Deficits
   April Job Losses the Lowest
   Bank of America Bonus Payments
   Bank Stress Test Results
   Banks Stress Tests Flawed
   Bank Stress Tests Questions
   Banks Financial Trickery
   Canadian Oil Companies
   Card Issuers Meet Obama
   China Detroit's Lifeline
   China Taiwan Investment Accords
   China's Yuan Carry Trade
   Ciena Corp Recommendation
   Credit Default Swaps
   Elliott Wave Disciple
   General Motors Savior
   How to Buy Banks
   India's Slow Growth
   Japan's Lost Decade
   Long-Short Investing Strategies
   Money Morning Bank Stress Test
   Oil Prices Could Jump
   Russia and China Energy Deals
   Russian Economic Model
   Small Caps Proven Profitability
   Solar Energy Comeback
   Sustained Economic Recovery
   World's Reserve Currency
   Online Transactions Survey Findings
   Millionaire Mindset Charateristics
   Real Estate Investing in Panama
   Strategies for Achieving Success
   New Orleans 2015
   Casey Summit 2015
   Antigua Conference
   Recipes for Success
   Cancun Seminar
   Panama Seminar