Brand new in the market of binary options trading are the Ladder options. Although it is the most advanced way to trade binary options, they are not difficult to use.
What are Ladder Options?
Ladder options are a unique feature on binary options trading platform.
Ladder Options are my favorite type of binary options to trade. Anyoption even offers up to 1500% payout when your trade ends up in the money!
The brokers list 5 possible prices for options: two above the current price, two below the current price and the current market rate. Each different strike price offers an up or down button and offers a different pay out rate.
Common binary options are limited to chosing up or down based on the current market rate. You are limited in what you do: the three steps.
With ladder options the options are five times greater. Traders are give the option to open a position above or below the current price.
Ladder binary options explained
Watch the figure above. To use the ladder options, select the asset (1) and take a look at the epiry time below at (2). To the far right you can enter the amount you wish to invest (3) in a range from $10 to $100. The rate for EUR/USD is 1,35673 (4). To the right you can see the prices for up and down (5). You have a payout for each option at each strike price. Are you able to predict the rate very accurate? Then the Ladder Options are your way of trading the binary options market.
The highest pay out rate visible is 586,68%. However, ladder options can go up to 1250% pay out rates!
Ladder Options Strategy
‘There are at two possible strategies in trading ladder options which I would like to explain to you.
1. Let’s say that for example you think the rate of the EUR/USD will go up in a certain time frame. In the figure above you see the current price rate and two rates above the current rate. When you are willing to invest $300 dollars in this particular option, you might want to devide that by three. You can now open three call positions with $100. This might be better than to invest $300 in a single position. Minimizing the risk!
2. A trader can also use the ladder option as a second investment. Opening another position when your previous ended in the money is an example of a ladder options strategy.
Ladder Options Underlying Assets
GOptions have expanded the Ladder options tradable assets with more pairs. You can now trade:
Please note on the screenshot below that the current price is 1,36247. When the price hits above 1,36393 and stays there, the payout rate is almost 1000%! The difference between the platform price and the strike price is a very low 1,1 cents.
In other words: when the price goes up 1,1 cents on expiry, you will receive the 997,69% payout!