What is ladder options
The ladder option is one of the tools you would not want to miss while trading. As complicated as it might seem, it is relatively easy to understand and trade with. But first of all, you should have a clear understanding of classic options before heading to the ladder option trading.
What is ladder options?
A ladder option is an exotic option that locks in partial profits once the underlying asset reaches predetermined price levels or "rungs". This guarantees at least some profit, even if the underlying asset retraces beyond these levels before the option expires. Ladder options come in put and call varieties.
A ladder option is an option contract that allows the holder to make a profit as long as the market price of the underlying asset reaches one or more strike prices before the option expires.
This option lets you profit on multiple asset price level on a single chart. On this particular chart, a trader would have FIVE expiry times and each expiry rate will have the two options available on the platform, which is call and put.
The trader might then speculate different expiry price and choose if the asset's price will go below or above this particular expiry price by using the "CALL" or "PUT" button.
The difference between this particular trading tools compared to others, is that you already have a target expiry prices at your reach. All you have to do is to forecast whether it would go above or beyond the price target you chose.
Advantages of ladder options trading:
Get up to 1500% payouts on your trades.
Choose between various expiry times.
Higher chance of being in the money.
See also:
Best options brokers
What is options trading
Best options trading assets
Options trading platforms
60 seconds options
Types options