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Trade Strategies: What is a ‘Caught in the Hole’ trade

Bund 13 August 2018

A ‘Caught in the Hole’ trade is all about market positioning. Traders get themselves ‘trapped’ in a position buying or selling a market away from value. The reason they are trapped is that they are reliant on a continuation of the move the following day, which means new positions have to be put on at the open. If the continuation is not seen, then the positions established the night before are often quickly exited resulting in a move back towards value.

In this live AXIA debrief the key identifiers of a ‘Caught in the Hole’ trade and how such a trade could be executed are reviewed, as well as an additional reason to take a trade based on the movement in T-Note.

Technical Trading is covered early in the Axia Futures 8-week Intensive Trader ​Training Career Programme and trade setups such as the ‘Caught in the Hole’ trade, which is based on Profile, are covered in detail in the dedicated Volume Profile week of the course.

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