A strategy used by option traders that involves taking a long or short position simultaneously in both a call option and a put option that expire on the same date but have different strike prices that are usually set out of the money. A forex option trader might purchase a strangle on the EUR/USD currency pair if they thought that either volatility would rise substantially or that the EUR/USD rate would exhibit a large move one way or the other before the option expires.
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Commodity Futures Trading Commission (CFTC)
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