ladder-trading-heading-iconLadder Trading

Ladder trading with AlphaBinary

Ladder Options is one the trading tools that has attracted many due to its high reward profile. It is considered as the best binary options strategy for traders to execute transactions while being in the money, with minimum investment risks.

This newest feature is currently offered by a handful of brokerage firms and AlphaBinary is proud to be part of it. The Ladder trading tool, found on the main trading platform, is much appreciated by advanced and professional traders.

If traders have a desire to adopt the ladder options tool, they primarily need to have a clear notion of classic binary options as well as a broad understanding of the financial market. However, a strong analytical skill would probably be an advantage for traders to scrutinize market fluctuations in real time.

Ladder Options Tool Explained

By definition, Ladder Trading refers to an option contract that give traders the exceptional opportunity of choosing a multitude of strike times, that can generate better returns. It allows you to benefit some earnings even though the asset price declines below the predetermined strike time by the last minute. In other words, traders can predict long term behaviors of an asset and collecting profits as the targets are reached, along with minimizing loss if it occurs.

How Does Ladder Trading Work?

  • A trader has a selection of strike levels at equal intervals just like the rungs of a ladder. He/she then has to make price forecasts after analyzing a particular asset market. That is, the trader will have to indicate whether the asset price will rise beyond or decline with respect to the predetermined strike level at expiry time.
  • For this trading strategy, traders are allowed to use both the ABOVE and BELOW options at 5 different set time intervals for the same asset transaction. However, as said earlier, success is only guaranteed if the traders has made a good financial market analysis before proceeding with the trade.

Here’s a hypothetical example:

Suppose GBP/USD is trading at 1.3244 at 5p.m and a trader wants to invest on this asset using the ladder options tool. He/she chooses 5 different price levels for the transaction and the expiration time would be by 10p.m.

Consider the following set of 3 strike times.The payout rates depend on the market fluctuations and in this case is an approximate percentage

  • GBP/USD to be above 1.3254 (25%)
  • GBP/USD to be above 1.3261(35%)
  • GBP/USD to be above 1.3275(50%)

How will the trader benefit?

  • For the first transaction, as GBP/USD price level rises above the set interval by 10p.m, that is greater than 1.3254, the trader will be entitled to get a payout of 25%.
  • For the second transaction, GBP/USD will have to surpass the forecasted strike time that is greater than 1.3261 to earn his /her lock-in gain. In this case, the payout rate would be of 35%.
  • For the trader to be in the money this time, the predetermined strike time will have to hit above 1.3275, ensuring him/her a payout of 50%.

Advantages of using ladder options tool

Limited investment risks

Traders have the opportunity to benefit from lock-in gains as a forecasted strike time is reached on the graph.

Outstanding payouts

The potential payout rate generated by this trading instrument can reach up to 1000%.

Real time trading experience

Trade transactions can be replicated instantaneously.

A portfolio of strike times

Traders can choose their own strike time, thus getting more money-making opportunities.

How to trade ladder options with AlphaBinary?

  • Traders need to simply login into their AlphaBinary account to start trading.
  • In case traders do not have an account, they can create a binary options trading account. To activate their accounts, they must ensure that all the required compliance documents are sent prior to depositing funds.
  • To start off, traders need to click on ‘Trading Arena’ on the menu bar and then click on ‘Ladder’. The expiry time and an investment amount ranging from 25 to 250 should be entered.
  • As traders assess the market fluctuations, they must choose their expiry rates as well as select either Above or Below to place a transaction.
  • Traders can monitor their ongoing transaction from the ‘Open Position’ tab

Isn’t that fascinating? AlphaBinary offers you the opportunity to learn intricate yet rewarding trading tools, all on the same platform. Take your trading skills to the next level while potentially earning exceptional payouts. It is possible!