How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to activate Level Up Bonus?
Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.
Short Strangle Option
Short Strangle Option
Short Strangle is an option strategy with limited profit potential and conditionally unlimited risk, based on selling volatility. The use of such a strategy makes sense when the trader has a prediction that the price will not change much before the expiration. In this case, the seller of the options receives his premium, but does not fulfill any obligations and does not incur any losses associated with them.
The advantage is that the seller of options in short strangle strategy receives at once a double option premium for two differently directed options. As well as the possibility to profit in the absence of any noticeable price movements and volatility.
The short strangle strategy is selling call and put options with the same expiration date but different strike prices. It works like this: you sell put options with a certain strike price and then sell a similar number of call options with a different strike price. The strike of the call option must be greater than the strike of the put option. All options have the same expiration date.
Let’s take a short strangle example. Suppose the call option has a premium of $25 and a strike price of $100. The put option has a premium of $15 and a strike price of $90. The total premium is $40 ($25 + $15). Thus, the first breakeven point is at $140 ($100 + $40), and the second one is $50 ($90 - $40), respectively. If the asset stays in the $50 to $140 price range, we will make a profit of $4000 ($40 * $100). And we will lose money if the price moves out of this price range.
2022-04-22 • Updated