Jump to content


Next High Impact Market News Event:
Retrieving events...

Toggle shoutbox The Traders Chat Open the Shoutbox in a popup

@  kalc : (02 July 2020 - 09:04 AM) trading has made me fat anyway TP ha ha
@  traderpusa : (02 July 2020 - 06:52 AM) @kalc, getting more fat every day under quarantine lol
@  kalc : (02 July 2020 - 04:01 AM) and by the way if that guy trys to sell you stuff dont buy it, he's just ripped off some indi's over at forex-station lol its all freely available
@  kalc : (02 July 2020 - 04:00 AM) lol hey TP hows it going young man
@  traderpusa : (01 July 2020 - 01:53 PM) So is the market lol
@  David : (30 June 2020 - 08:00 AM) yall are savage :D
@  David : (30 June 2020 - 08:00 AM) haha
@  Sambo : (29 June 2020 - 05:04 PM) If there's one thing i've learned, it's that the most profitable traders are the least boastful.
@  happyjas : (27 June 2020 - 09:50 PM) We understand what took place, you won a lot of money and bought a new "BMW M4 cake", you got down on your knees, put your little hands together and sounded like this: "My name is my name, if you ask me again I'll tell you the same, I won a lot of money, and already shove it on my candy back-end, but there's one problem, everyone knows already that I ABSOLUTELY SUCK."
@  happyjas : (26 June 2020 - 05:43 PM) the R8 Audi thing -_-
@  happyjas : (26 June 2020 - 05:42 PM) :unsure: 'Can't afford the BM thing, 'just got the 2018 Audi 2016 :(
@  happyjas : (26 June 2020 - 05:41 PM) :unsure: 'Ca
@  Dyabolus : (26 June 2020 - 03:45 AM) so were u verified by David at last? how about that 'pic'
@  David : (25 June 2020 - 04:48 PM) sure post a pic
@  euro_rapp : (25 June 2020 - 04:17 PM) sorry im bragging again, i sincerly apologize. Just wanted to share with you :(
@  euro_rapp : (25 June 2020 - 04:13 PM) By the way do you wanna see my new BMW M4?
@  euro_rapp : (25 June 2020 - 04:13 PM) where do you read that closure stuff?
@  happyjas : (25 June 2020 - 07:45 AM) thanks anyways MAster David, a million times :)
@  happyjas : (25 June 2020 - 07:41 AM) *closure
@  happyjas : (25 June 2020 - 07:39 AM) feeling anxious about what I read about BOE (the enclosure, i guess) :(

Photo

nadex straddle

premimum straddle

  • Please log in to reply
6 replies to this topic

#1 nadex girl

nadex girl

    Member

  • Members
  • PipPip
  • 48 posts

Posted 20 June 2013 - 03:05 PM

Ok..this is my first thread..so spare me if i create too much confusion...lol

 

So today m gonna talk a different way of straddle on nadex...lots of you might know it already but those who dont...use it

 

This method can be used to find better price and less risk and more profit...

 

Whenever you think to place a premimum straddle on nadex......try to use two pairs for straddle ie eur/usd and gbp usd  as these pairs moves in same direction....if one goes up the other one goes up as well.......

 

So lets say its 2:45pm and u r going to place a straddle

 

go to eur/usd and select a desired strike price ie   eur/usd> [email protected] and place a CALL

 

then instead of choosing another contract on eur/usd to place a put go to gbp/usd.

 

why?

 

Because if u will do it on eur/usd then u have to choose a strike either 10-20pips away from ur CALL strike which will be too expensive or there will be no strike available.

 

as example lets say u chose eur/usd>[email protected]  current buy price is $50<<<<underlaying market is right now around this strike...lets say at 1.0095

then u chose eur/usd>1.1020(20 pips up) u will get a sell price around $20(or less) because bin is already deep in the money because ur underlayin market is already 25pips below this strike

 

lets say u did this around 2:50 pm now market either can go down either can go up or stay in between ur strike prices...

 

if market stays in between ur strike prices u will win both ie eur/usd expired at [email protected] which is higher than ur call and lower than ur put....but this happens rarely...in very slow market....and at that time mostly bins are too expensive too...

 

now according to above given example price is 25pips below ur put and 5pips below ur call...and u have 10mins for market to move...and market move down or stays where it is....expire below ur call order....so u will loose ur call order which is $50 and u will win put which is $20 but u overall lost $30...

 

now if u do this on 2 different pairs....

 

eur/usd >[email protected] [email protected]

 

gbp/usd>[email protected] [email protected]

 

now everything is same except one thing better put price....instead of $80 risk u have a less risk and more profitable put order..

 

now market move down and ur call trade u loose and but put trade u win....overall result u lost nothing and won nothing....but if u rsmart enough....u can do this

 

the time when u took these trades was 2:50pm 10 minutes before 3pm expiration

now at around 2:56 and 2:57 close the call trade which is loosing....your risk on call was $50 now it should be priced around $30 or so if market didnt move too deep....then if u close it now instead of losing $50 u will loose $20 but on other side on ur put u will win $50 so ur overall profit is $30 better than doing straddle on same pair..

 

now last scenario which can happen here is that when u closed ur call trade @2:57 and market move above than ur put strike u will loose dat trade....on the other side same pair have advantage on this....but hey...this strat is not for news period or fast moving market...its for slow range market....so chances are less that market will move that high in 3 mins.....

 

there are a lot other things which have advantage on same pair straddle....but this is just an idea....use it or leave it......lol

 

comments are welcome and i am just a NOOB here....


  • marijan993 and cabtrading like this

#2 marijan993

marijan993

    Member

  • Members
  • PipPip
  • 444 posts
  • LocationDubrovnik, Croatia

Posted 20 June 2013 - 03:14 PM

This is not a straddle, this is sort of a iron butterfly. :)

But brilliant idea.

Thanks, NG.

 

Kind regards,

Marijan



#3 KAPITAL

KAPITAL

    Member

  • Members
  • PipPip
  • 77 posts

Posted 21 June 2013 - 11:16 PM

Great strategy NG!



#4 nadex girl

nadex girl

    Member

  • Members
  • PipPip
  • 48 posts

Posted 23 June 2013 - 11:35 PM

thank u guys



#5 KAPITAL

KAPITAL

    Member

  • Members
  • PipPip
  • 77 posts

Posted 01 July 2013 - 10:03 PM

One thing I would like to add is to have  tear-off tickets for both trades showing on your screen so that when price moves against one of the trades (most likely price changes will be swift since if it's close to expiration) your ticket will already be open to quickly close the trade.



#6 apexinvesting

apexinvesting

    Member

  • Members
  • PipPip
  • 27 posts

Posted 04 August 2013 - 07:00 PM

Correct this is a cross market butterfly. This is assuming that the pairs stay correlated and this is not the case as often as one would think. (unfortunately been there done that got the scars - at least in demo :)

 

Though they "generally" do stay correlated in the grand scheme due to the USD the intraday correlation can easily be off a few ticks - and both could finish OTM

 

Buying the eur/usd and selling the gbp/usd is being long EUR - Short GBP - long usd and short USD - cancelling out the USD - so basically you are buying the EUR/GBP (or if inverting are selling the EUR/GBP)

 

The eur/gbp goes up because either the eur moves up faster than the gbp moves down - or the eur moves up faster than the gbp moves up

 

The eur/gbp goes down because either the eur moves down faster than the gbp moves down - or the eur moves down faster than the gbp moves up

 

As stated the total risk on the trade is $100. Guessing your willing to close both sides  to help reduce the risk? out at a $20 loss on each side? Also if you only have few minutes till expiration the price can go from 50 to 10 in a matter of  a few ticks and one tick could make it drop from 50 to 30 easily knocking you out of both trades on very little volatility-  making the exit strategy very difficult - also if it happens in the last 2 minutes you could lose on both if there is a inversion in correlation for the last 25 or so quotes and not be able to close either side - which is highly possible.

 

Not trying to be negative just trying to provide some insight - i hope it helps.

 

Another choice to accomplish the goal of getting narrower strikes while avoiding inverted correlation you can use intradays strikes for the 3pm expiration that are only 10 ticks wide on fx and also you have the dailies expiring at that time adding to the strike selection available and you ensure correlation by using the same fx pair.


  • cabtrading likes this

#7 KAPITAL

KAPITAL

    Member

  • Members
  • PipPip
  • 77 posts

Posted 13 August 2013 - 03:58 PM

Another choice to accomplish the goal of getting narrower strikes while avoiding inverted correlation you can use intradays strikes for the 3pm expiration that are only 10 ticks wide on fx and also you have the dailies expiring at that time adding to the strike selection available and you ensure correlation by using the same fx pair.

 

 

 

 

 

 

GREAT IDEA!

 






0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users


USA REGULATION NOTICE: There are many binary options companies which are not regulated within the United States. Most of these offshore companies are not supervised, connected or affiliated with any of the regulatory agencies such as the Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

It is our STRONG opinion that you do not operate with any unregulated brokerage firm as they may steal or try to scam you out of every dime you have. Please take notice that any unregulated trading activity by U.S. Citizens should be considered unlawful.

Risk Disclosure: Binary Options Edge does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. Binary Options Edge doesn't retain responsibility for any trading losses you might face as a result of using the data hosted on this site. The data and quotes contained in this website are not provided by exchanges but rather by market makers. So prices may be different from exchange prices and may not be accurate to real time trading prices. They are supplied as a guide to trading rather than for trading purposes.