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When you trade binary options, the trend can be your friend. Sometimes markets will just chop sideways, showing almost no direction. As you can see. Since choppiness appeared to be ruling the day, the decision was made to pull up the 11am-1pm Nadex charts and look for an opportunity to trade an Iron Butterfly.
Since the market had been ranging between and , it was time to wait until the market traveled to the middle point of this range, around The SELL leg filled at With an hour left in the trade, it was time to manage the trade.
If either leg was threatened by a breakout, it would be time to exit the trade for a small loss. But that never happened on March The market continued to drift sideways, expiring at This was a textbook example of an Iron Butterfly, and this strategy can work quite well if you are trading a sideways-moving market.
Iron Butterflies can be an effective trading strategy if you know a market is likely to move sideways. Aliquam lobortis magna accumsan erat fermentum, at dapibus neque maximus. Fusce lacinia rutrum justo ut hendrerit. Phasellus mattis vulputate erat. Suspendisse libero nibh, fermentum vitae consectetur id, placerat eget dui. Mauris non libero suscipit, ullamcorper enim quis, ultrices ipsum. The information contained above may have been prepared by independent third parties contracted by Nadex.
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