Ladder Binary Options – The Ladder Option Explained

Ladder binary options are an interesting new contract type that offer a unique risk/reward profile and trading opportunities. These options are quite different from any other kind of binary option contract but are still relatively easy to learn and use. They are, however, currently only offered by a small handful of brokers (we will cover a couple of the best ones at the end of the post) and there is not much information about them out there. Hopefully we can contribute to rectifying this at least a little bit with this article.

Definition of Ladder Binary Options

An option contract that locks-in gains as the underlying asset price reaches predetermined levels (or “rungs” on the ladder), returns rising with each step up. This guarantees at least some profit even if the asset price ends up declining back below those levels before expiry (Source:

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This new type of binary option contract was first introduced to the market by IG Markets, a predominantly CFD (Contracts For Difference) and forex broker that offers some binary trading. Odd that it came out of there but that’s what happened so there you go. While these options have been gaining in popularity they are still relatively little-known and not very widely available at all yet. Obviously bland definitions only get us so far in understanding what these option really are and how they are traded though so let’s get down to business.

The fact is that every broker who does offer these options handles them somewhat differently and we can’t cover every variation in this article. What we can do, however, is show you how they are generally structured and traded. Any variations from what is described here should be relatively minor.

What Are Ladder Options?

Starting with the basics and picking up where the definition left off, a Ladder binary option is a type of binary option contract in which you are presented with a range of price levels at equal intervals (ladder rungs), combined with various expiry choices. And, of course, Call or Put options. Sound confusing? It does to me. Luckily, it isn’t actually as confusing as it sounds.

Ladder binary options trade example image

Example Ladder Binary Options Trade

For our hypothetical example trade let’s assume that we are bullish on Google overall, and expect a rise today specifically, thanks to a positive earnings report after market close yesterday. Prior to market open the price of Google stock is $1,123.00 and we decide to open a position using the ladder binary options contract offered by our broker.

The first thing we will have to do is choose an expiry time. We want to give it some time to act so we choose the latest expiry for the day at 23:00 GMT. Once we choose our expiry the fields showing your broker’s offered return rates will be populated. In our example we would have something that looked like the following.

Google – Above/Below @ 1,138.00 – 470%/07% Return
Google – Above/Below @ 1,133.00 – 321%/18% Return
Google – Above/Below @ 1,128.00 – 175%/56% Return
Google – Above/Below @ 1,123.00 – 78%/124% Return
Google – Above/Below @ 1,118.00 – 23%/276% Return
(The 1st # being the return for Above, the 2nd for Below)

This table is roughly what we might be presented with given the above outlined parameters. Now we just choose our trade(s) based on the offers from our broker for that expiry. If we think, for instance, that Google will at some point during the day reach a price of 1,133 then we would choose the Call (or above) option which is offering a 321% return rate. Now if at any point during the day the price of Google stock so much as briefly touches that 1,133 level, we would receive our 321% payout. Even if the price falls below that level — or even below our entry-level — prior to expiry we would still receive that same high payout.

CherryTrade newly offered ladder options trading starting early 2016

Once you reach a ladder “rung,” the return rate associated with that rung is locked-in no matter what happens afterwards. This makes ladder binary options somewhat similar to the more widely known one-touch binary options offered by many popular brokers. Somewhat similar, but also quite different. For one thing, Ladder options can be traded any time markets are open, not just on weekend like one-touch options. The other big difference is the “stepped” nature of the return rate on these contracts as opposed to the single, large payout on a “long-shot” one-touch trade.

Unfortunately, we can’t really get any more in-depth than that regarding these options due to the fact mentioned earlier that each broker who offers them does it somewhat differently. These contracts are so new at this point that they have not yet been standardized across the industry. This will surely happen in time as ladder options continue to gain in popularity. But for now, you will have to consult individual brokers for more detail than that provided here.

Currently the most popular and reliable brokers offering these contracts are:
#1 Finpari – (4.86/5.00) – Gladly Accepts US-Based Traders! (Including ourselves!)
#2 CherryTrade – (4.13/5.00) – Also Happily Accepts US Traders!
#3 TradeRush – (Read Detailed Traderush Review Here) – Sorry…No US Allowed :-(

Trading With 60-Second Binary Options Expiries

Some Features & Tips When Trading 60-Second Binary Option Expiries

The only thing better than generating profits is generating fast profits. Binary options trading allows traders to do just that via expiry times on trades that are as short as 60 seconds. In fact, as of just very recently, an exact title would have to include 30/60/120/5-Min. Expiries, but that would make for quite the cumbersome title wouldn’t it? However, we will be touching on those other short expiry windows. 60-second turbo binary options trading platform and overall review It is entirely possible to earn hundreds, even thousands of dollars in a minute or less if you do your homework and make wise decisions. On the flip side, fast trades can equal fast losses, so let’s examine the best use of this type of trade. When short expiry time periods first entered the marketplace (introduced by TradeRush) 60 second trades were the only option. Today, some binary options brokers now include additional expiry times of 30 and 120 seconds. What each of these expiry times present you with is the opportunity to generate profits from short-term price movements. Additionally, they present you with the chance to profit from multiple trades whenever the price of your selected asset is trending in one direction or the other.

Keep in mind that a massive trade volume is quite easy to accomplish under such circumstances. Almost unavoidable for that matter. Asset prices do not remain the same for very long after all. There is a constant push and pull in the market, with buying and selling always moving asset prices along. For traditional market traders, volatility can be quite frustrating. For the binary options trader it can be quite profitable.
CTOption Binary Option review for USA binary options traders and brokers Although a long-term price trend could allow you to lock in a large number of profitable trades, brokers offering 60-Second binary options trading can and will allow you to profit from much shorter-term movements, essentially adding a multiplier to your profit margins. These movements can be reasonably interpreted on the asset price chart of your choice with a little (then a lot) of practice. Risk is always a part of trading, whether you are trading binary options, CFD’s, Forex, or within the conventional markets. The risk level associated with 60 Second trades can be higher than that of any other trade type. However, danger lies in how you use and treat them.

If you treat these instruments with the seriousness and respect that any financial product deserves, then you should be just fine with a little practice. If you treat them like the roulette table at a casino…well, you’re likely to get better results at the casino. In short, treat these financial instruments with the respect they deserve as financial speculation instruments, and not as some form of gambling mechanism. You WILL lose in the long-run if you treat it like a casino, of that I can assure you.
porter finance review of trading platform and services 2015 Since 60-second binary options do last such a short period of time, you must be able to know when to trade or not trade. This is an even more important skill than usual with extremely short-dated contracts like these. When market conditions are not optimal for this trade type, then don’t make the trade(s). Walk away and live to fight another day! Either select a longer expiry window, one more suitable to current market conditions. There are many choices and combinations to choose from, so you should rarely, if ever find yourself in a position of not being able to find a suitable trade anywhere. One of the best things about 60 Second binary options trading strategies is that they can reduce the time commitment associated with analysis. One analysis session could point you in the direction of several profitable trades.

For an example of the above discussion: If you’ve determined that an asset is likely to trend upward over the next 15 minutes, you could choose to enter into several fast trades in order to profit from that movement multiple times. When 60 Second trades were first introduced within the binary options industry they were an immediate hit. Traders were clearly able to see the benefits of being able to opt for much shorter expiry periods when attempting to profit from short-term price movements. Some traders exclusively use this trade type now, while most others choose to mix things up with the trading of multiple contract types. There is no right or wrong, so long as you’ve taken the time to conduct some analysis and opt for reasonable investment amounts. We hope you found at least some use in this short, but informative introduction to the very short-dated binary option contract: the 30-second, 60-second, and 120-second binary options trading contracts now available at a growing number of brokers as the contract’s popularity continues to grow.

Good luck to everyone in all your trading activities, whatever they are and wherever they are done!
The BOTrading Bosses

Power Of Asset Price Trends In Binary Option Trading

Importance of Asset Selection & Pricing In A Binary Option Trade

There is no type of asset price movement that binary options traders cannot profit from. With that being said, the most profitable type of price movement is always going to be a steady up or down movement. Not only is this type of movement easy to spot on price charts, it can also continue on for a time, creating multiple profit opportunities. This is where the saying “The Trend is Your Friend” comes from, and it is even more true with binary options trading than with probably any other type of trading.

porter finance webinars for binary options asset pricing trends

There is no binary option asset that is immune to trending. However, there are some popular assets which receive a higher level of attention from investors and are therefore likely to trend more often. The ingredients needed for a trend are supply and demand, along with strong investor sentiment. If investors are generally feeling indifferent towards an asset, you can expect sideways (flat) price movement until some event changes investor sentiment.

For novice binary options traders, nothing is better than a price trend, and we rarely recommend “betting” against the trend unless and until you really feel you know what you’re doing. Steady price movement in a single direction produces the easiest profit opportunities of all. The key is to simply be able to identify the price movement. This is quite easy using a basic binary options chart that uses basic lines, bars charts, or candlestick charts (our personal favorite) to track the movement of the asset price. When the line is generally moving up or down for a time, that is considered a binary option trend. These periods are a trader’s best friend. The amount of time that this price movement may last will depend on just how strong the market sentiment actually is.

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What action should be taken when a trend is noted? There are several possibilities. Many traders now like to make use of Sixty-Second binary options trading, as this super-short expiry time can allow for a number of profitable binary options trades to be completed in a short amount of time. These are not the only option though, as price movement characteristics vary. Sometimes a trends will only last for a few minutes (From Turbo Options to Hourlies). Other times you’ll want to consider the longer term price movement to see if the price has been steadily climbing or falling over a period of week or month (daily or weekly options).

Pullbacks during a trend are normal (and can be a great time to enter the trade). These are times during which the asset price will try to move back towards its average or median price. These movements can cause problems when using the aforementioned Sixty-Second binary options broker trades. To work around this, observe the price movement for several minutes to see just how many times it pulls back. If this is occurring frequently, yet the trend is still generally in place, consider longer expiry times such as 15 or 30 minutes. A one-hour expiry may be a good choice under these conditions as well.

There simply is nothing more powerful than a price trend when it comes to profiting from binary options trading. It makes no difference what your experience level is or what type of assets you prefer, you should nearly always be entering into trades when you can be fairly confident in the continuation of the trend. Obviously, some opportunities will be missed from time to time, but so long as you closely monitor market news you’ll know just where to look for the best opportunities.

Good luck and Trade Smart out there folks!

how to predict binary option asset pricing trends

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… and that list is shrinking fast my friends. There is certainly more than just what we have listed…unfortunately, knowing that there is little to no competition in the market, some brokers accepting US clients are basically just taking their money/deposits outright, so you have to be careful and diligent these days is–like us–you are a US-Based binary options enthusiast. We know you want more than 3 choice, as do we, and we are HARD on the lookout for trustworthy, reliable new to newish brands that we can positively review and feel comfortable putting our name and reputation behind. Sadly, for now these are the choices we’ve got for our American friends. Soon my friends, soon.

Good luck in ALL your trading activities!