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  1. #1
    Moderator Kolyo's Avatar

    dollars 1 Ladder Binary Options – What is it and How to Trade Them? !!!

    Maybe some of you know what are ladder binary options, but I am sure many of the traders here are not aware actually what is it ladder option

    So I decided to explain in brief about these specific type of binary options.

    So here it is – a Ladder Option is an option that locks-in gains once the underlying asset reaches predetermined price levels or "rungs," guaranteeing some profit even if the underlying security falls back below these levels before the option expires.

    For example, if a ladder call option in USD/JPY with an underlying price of 99.50, with a strike price of 99.75 and rungs at 100.00, 100.50 and 101. If the underlying price reached some of these levels, even if the underlying falls below these levels before the expiration date the option will be considered won.

    So in brief binary options ladder indicates the level to which the price of an asset should change for a given period of time. If we have an opinion about touching given level it will be better to use such option than regular high/low because it will have better return. In other words ladder options are kind of High/Low but may be much more complex with different levels.


    If some of you have experience with trading ladder options share your experience here with us!
    Last edited by Kolyo; 04-10-2015 at 09:07 PM.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  2. Thanks linda_fx thanked this post
  3. #2
    Senior Member linda_fx's Avatar
    Thanks for this interesting thread. I haven't heard about this before, but it sounds cool.

  4. #3
    Legendry Member Michael Hodges's Avatar
    ladders are awesome, they harness the power of spot binary and the 0-100 model providing set strikes with variable payouts based on how far in or out of the money they are, they can be used for hedging too... really cool stuff.

  5. #4
    Active Member hecky3's Avatar
    I haven't actually used these instruments yet but have been thinking about possible strategies for them. I came across them while browsing the IG index site. The only difference between your description, Kolyo, and their's is that their's is continuously traded so you can take profits at any time before expiry. This gives the flexibility to use many strategies.
    Last edited by hecky3; 04-11-2015 at 07:18 PM.

  6. #5
    Legendry Member Michael Hodges's Avatar
    R u looking at IG markets? cuz they aren't exactly the same as spot binary, they sell CFD's if i'm not mistaken, sold in lots and traded 0-100 style.

  7. #6
    Active Member hecky3's Avatar
    Quote Originally Posted by Michael Hodges View Post
    R u looking at IG markets? cuz they aren't exactly the same as spot binary, they sell CFD's if i'm not mistaken, sold in lots and traded 0-100 style.
    Yes, I think they use that name as well. They offer CFD accounts in countries where spread betting is illegal but their binary options markets are only available via spread betting accounts so you probably don't see them searching from the USA. You're right about them being priced 0-100 but they are continuously quoted so they can be sold at any time before expiry. They offer a rise market, a fall market, a greater than and a less than market in indices (the number of points varying with the index in question) touch markets spaced as a ladder and ladder markets. The spread betting site is directed at the UK market.

    Other than binary.com they are the only firm I know of serving the UK market in binary options, though I'm sure there will be others.
    Last edited by hecky3; 04-13-2015 at 06:46 PM.

  8. #7
    Active Member hecky3's Avatar
    Quote Originally Posted by Michael Hodges View Post
    R u looking at IG markets? cuz they aren't exactly the same as spot binary, they sell CFD's if i'm not mistaken, sold in lots and traded 0-100 style.
    Yes, I think they use that name as well. They offer CFD accounts in countries where spread betting is illegal but their binary options markets are only available via spread betting accounts so you probably don't see them searching from the USA. You're right about them being priced 0-100 but they are continuously quoted so they can be sold at any time before expiry. They offer a rise market, a fall market, a greater than and a less than market in indices (the number of points varying with the index in question) touch markets spaced as a ladder and ladder markets. The spread betting site is directed at the UK market.

  9. #8
    Master Member SeasaltMcFish's Avatar
    I didn't know about these Ladder Options. Do they have them with 24Option?

  10. #9
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    I didn't know about these Ladder Options. Do they have them with 24Option?
    no, the ones I know of the most are with spotoptions brokers but some other platforms have similar as well....

  11. #10
    Master Member SeasaltMcFish's Avatar
    k, thanks

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