Tool for binary options trading "Ladder": Strategies

With the development of option trading, many professionals use other variations of this tool in addition to the classic binary options (“higher / lower”), and I was no exception. One of these types of non-standard options is the Ladder. In this article, I will tell you about what the “Ladder” is, and how it differs from ordinary options, as well as share another profitable strategy.

The principle of operation of the “Ladder” strategy The main idea of this option is to determine the state of the price relative to the established option levels before the moment of expiration (expiration).

Advantages of the Steps over Classic Options In the standard “higher / lower” option, you can get the same profit (for example, 70-80%) with 50/50 chances that the price will go one way or another. Ladder provides several advantages at once:

• You can trade more conservatively, making less profit, but with a much greater probability;

• there is a chance to get super-huge profit with abnormal movements of quotes (more than 300, and sometimes 1000%);

• Experienced traders can earn significantly more due to accurate currency forecasts;

• a combination of trading from different levels is possible, which allows you to apply several trading strategies at the same time.

The only drawback of the Steps is the difficulty for beginners, since it is necessary to have sufficient experience and understand the price movement and level. Classic options are simpler in this regard, since there are only two directions of movement, and there are no levels.

Strategies for Trading with Steps

To effectively trade this type of option, you need to have a clear understanding of the trend. In classical technical analysis, the upward trend is considered to be the price movement with the constant updating of highs (extremes). Accordingly, a downtrend is vice versa.

As you can see, the main sign of such a trend is the constant updating of highs after each rollback. Immediately after the price cannot update the top, we can talk about the cessation of the upward trend.

Conservative strategy - trading from the lower / upper level No. 1

Idea:  the price is more likely to not be able to cross the lowest or highest level against the current trend. In all incomprehensible situations, it is better to use an exclusively conservative approach.

Main conditions:

• there are no important news on the instrument in the economic calendar;

• the presence of a pronounced trend up (we open a deal that the price does not exceed the lower level) or down (we open a deal that the price does not exceed the upper level)

• expiration time - at least 30 minutes

• financial instruments - any, including the spot market;

• risk management - maximum 2% of capital in one transaction.

The optimal strategy is to trade from the two lower / upper levels No. 1, 2.

We open deals with the fact that the price does not exceed two lower or upper levels against the trend. Accordingly, two options are acquired at once from various levels of the Step. This strategy is best suited when there is a classic and understandable market situation for you.

Key points:

• there is no important news on the instrument in the economic calendar;

• the presence of a pronounced trend up (we open a deal that the price does not exceed the lower level) or down (we open a deal that the price does not exceed the upper level)

• expiration time - at least 60 minutes

• financial instruments - any, including spot market;

• risk management - a maximum of 5% of capital in one transaction.

Barry Copeland

In 2003, Barry Copeland received a degree in Journalism from the University of Sheffield. He is a sophisticated financial journalist with more than 10 years of experience in the monetary business and the media.Also collaborates with top managers to consider expenses through financial research. His goal is to become a community-level organization consultant, so he plans to continue his training

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