Hedging strategy issues

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    Renan 2013

    Hi guys

    I’m a bit confused regarding the content of one of your articles. In the article on Hedging strategy (http://www.binaryoptionswire.com/the-hedging-strategy-for-binary-options/) you state that a trader using this strategy should place both CALL and PUT trades at the same time before the release of economic data and then double-up on the direction the market actually moves in. It makes sense on the surface however with those two initial trades cancelling each other out what is the point of placing them in the first place? You can always just place the third trade after you know which way the market is moving, without having to place the opposing two. It says in the piece that you secure a better strike price by going in early but if these two initial trades cancel each other out then the better strike price is neither here nor there, it’s the strike price on the third trade that earns you money.

    I don’t see the point in placing the first two trades.

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