eejit explained the basics. It's basically a third blind equal to double the big blind (some places allow up to 3 times the big blind) put in by the player UTG. It acts as a bet, however the straddler gets an option to check or raise once it's back around to him.
The next player can restraddle for double the straddle, it can in theory go all the way up until the button, who is not allowed to straddle, but the most I've seen is a straddle and 4 restraddles
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