Straddle Strategy

Aim: Trade high-impact macroeconomic reports.

Method: Trade Buy and Sell positions simultaneously with Take Profit &
Stop Loss.
This strategy can work best when high levels of market volatility are anticipated…

…& is often applied to situations where the outcome is unknown.

Both BUY and SELL orders can
be selected, with equal
volumes.
A Take Profit between 20-30
pips can be selected, along
with a Stop Loss of 5-10 pips.
The trader can opt to purchase both BUY and SELL positions, around five minutes before the
report is released.
If the market moves upwards, the SELL position could close due to the Stop Loss, allowing for the
BUY position to potentially close due to the Take Profit.

If the market moves downwards, the opposite could ensue.

If the loss on one direction is 10 pips, but the profit on the opposite direction is 30 pips,

the 20 pips difference would represent the trader’s net profit.

 The below is a visual representation of the Straddle setup.

BUY Take Profit

20 Pips
SELL Stop Loss

5 Pips
1.10885
5 Pips
BUY Stop Loss

20 Pips

SELL Take Profit

 The below is a visual representation of an upwards movement that hits the Take Profit.

BUY Take Profit

20 Pips
SELL Stop Loss

5 Pips
1.10885
5 Pips
BUY Stop Loss

20 Pips

SELL Take Profit

The below is a visual representation of a downwards movement that hits the Take Profit.

BUY Take Profit

20 Pips
SELL Stop Loss

5 Pips
1.10885
5 Pips
BUY Stop Loss

20 Pips

SELL Take Profit

The financial products offered by the company carry a high
level of risk and can result in the loss of all your funds. You
should never invest money that you cannot afford to lose.