Can you explain the concept of straddling and strangling in the context of trading cryptocurrencies?

1 answers

• Dec 27, 2021 · 3 years ago
  Straddling and strangling are two trading strategies that can be applied in the context of cryptocurrencies. Straddling involves buying both a call option and a put option with the same strike price and expiration date. This strategy allows traders to profit from significant price movements in either direction. On the other hand, strangling is a strategy where traders buy both a call option and a put option, but with different strike prices. This strategy is used when traders expect a large price movement, but are unsure about the direction. By employing these strategies, cryptocurrency traders can potentially capitalize on market volatility and fluctuations.
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