What are the risks and rewards of using strangle trading in the cryptocurrency industry?

1 answers

• Mar 19, 2022 · 3 years ago
  Strangle trading in the cryptocurrency industry can be a high-risk, high-reward strategy. It allows traders to potentially profit from significant price movements in either direction. By buying both a call option and a put option, traders can take advantage of market volatility. If the price moves significantly, one of the options will be profitable. However, there are risks involved. The cost of purchasing both options can be expensive, and if the price doesn't move as expected, both options can expire worthless. Timing is crucial in strangle trading, as options have expiration dates. Traders need to accurately predict the timing and magnitude of price movements to make a profit. It's important to carefully assess the risks and rewards before using this strategy.
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