: Some traders use this method—often called a "straddle"—to profit from significant price breakouts. They wait for the market to move decisively in one direction, close the losing side, and let the winning side "run" to capture the momentum.
: By maintaining equal and opposite positions, a trader creates a "net zero" exposure where price movements in either direction have minimal impact on the overall account balance.
: Instead of closing a losing position and realizing a loss, a trader may open an opposite position to "freeze" the current drawdown while they re-evaluate the market structure. 2. Tactical Applications Forex Trading: Buying And Selling Simultaneously - Ftp