Straddles In FX by Solomon Chuama
News releases around the world can impact the currency markets. How can you take advantage of trading opportunities that can come up? Here’s a profitable trading strategy you can apply to forex trades.
High-impact news releases such as nonfarm payroll (NFP), Consumer Price Index (CPI), retail sales, central bank meetings, interest rate decisions, and trade balances can impact the forex markets. They’re binary events, so you don’t know what direction prices will move after the news is released. The straddle strategy, which was developed to trade high-impact news releases, intends to catch the move caused by the news release regardless of the direction of the market ...