MUST READ - Binary Options Brokers Warnings
(+) You must always be careful when trading with binary options brokers, some of them that look to be legit and even are regulated have turned out to be nothing more than boiler rooms and bucket shops.
(+) When first dealing with ANY binary options broker first deposit a SMALL minimum deposit for trading.
(+) Never take ANY bonuses! After making profits from first trade ask for an immediate withdrawal.
(+) If you are called on the phone and asked to make any LARGER deposits ALWAYS say NO.
(+) After making a successful withdrawal of first profitable trade + deposit amount you can start to trust the broker.

When to Trade in Ladder Options


Ladder Options

Binary Options Blog - Ladder options are special kinds of options that guarantees the locking in of profits once the underlying reaches a pre-established rung or price level. Even if the price of the underlying falls prior to expiry of the option, the profits are guaranteed. This is a viable way of reducing the risks usually associated with options trading. Nevertheless, ladder options do not guarantee profits. They simply ensure that if profits are made, they are guarantee once the profit is made before expiry.

Ladder OptionsIn ladder trading, the broker normally allows the trader to choose at least three (3) different strike prices and three (3) different expiry dates for the underlying asset of choice. The strike prices chosen should be equidistant from each other just like the rungs on a ladder. This is what creates the “ladder” or rung effect and it is this feature that makes this type of trading attractive to some investors. As the trade progresses and the stock price changes, once you correctly predict how the stock price will move in relation to the strike price within the expiry dates chosen, your profits are guaranteed regardless of how the stock price may move going forward. Some brokers allow traders to close a position early.

Even though these types of options guarantee a lock in of profits, the minimum deposit required to participate in this type of trading is usually higher than regular options trading. This makes it more expensive and therefore not in the budget of some investors. Nevertheless, this type of options trading should ideally only be pursued by more seasoned traders who have a good understanding of how options trading works. Beginners who decide to invest nevertheless, should limit their investments to the minimum required in order to minimize their trading risks.

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