Ladder Options – Trading Strategy For Binary Ladders

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Binary Options Trading Strategies

Trading with Binary Options

Binary Options, known also as Digital Options or All-or-Nothing Options are not new financial instruments, but thanks to the new technologies, these are now available to the public and present an easier and faster way to make money.

The Digital option term derives from the digital nature of electronic devices which have only two states of being, “on” or “off” as with digital options trading.

When you hold a digital option, you are either in an ―On‖ state indication which means you are in the money or in an ―Off‖ state implying you are out of the money.

The value of the payout (Some brokers offer up To 85% return) is determined at the onset of the contract and does not depend on the magnitude by which the price of the underlying asset moves, so whether you are in the money by $0.01 or $0.05, the payout that you receive will be the same.

Binary Options are sometimes called all-or-nothing trades, meaning that either you are In-The-Money (ITM) and you get the specified payout, or you are Out-of-the-Money (OTM) and you lose your traded amount.

Binary options trading are a fast and exciting way to trade the financial markets. The payout rate trading digital options is high in comparison to any other traditional financial trading.

From the buyer’s perspective, the main advantage of binary options trading is that the Risk taken is limited to the premium that the trader pays up front to take on a binary option position. So in above example, the Risk taken by the trader is limited to $100 in that particular position.

This benefit means that the binary options trader can feel secure in knowing that their downside is limited to their initial trade size. While they can still profit if their market view turns out to be correct, they avoid having to worry about stop loss order slippage or losing their trading discipline.

Furthermore, binary options are a simpler trading vehicle having a limited risk profile since they either pay off a fixed amount or they do not, depending on where the underlying instrument is trading at the binary option’s expiration.

Another advantage is that binaries can often be traded for shorter time frames (1 hour, ½ hour or even 15 min) via binary options trading platforms then are typically available for normal options offered by exchanges.

Several types of Binary Options can now be traded online using a variety of binary options trading strategies.

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High/Low: The most commonly available binary options are “High/Low” also known as “Above” and “Below” or “Call/Put” binary options. Basically, a trader will receive a payout on a long binary option if the market is higher than the strike price of an above binary at expiration, or under the strike of a below binary.

Fr om the buyer’s perspective, the main advantage of binary options trading is that the Risk taken is limited to the premium that the trader pays up front to take on a binary option position. So in above example, the Risk taken by the trader is limited to $100 in that particular position.

This benefit means that the binary options trader can feel secure in knowing that their downside is limited to their initial trade size. While they can still profit if their market view turns out to be correct, they avoid having to worry about stop loss order slippage or losing their trading discipline.

Furthermore, binary options are a simpler trading vehicle having a limited risk profile since they either pay off a fixed amount or they do not, depending on where the underlying instrument is trading at the binary option’s expiration.

Another advantage is that binaries can often be traded for shorter time frames (1 hour, ½ hour or even 15 min) via binary options tradingplatforms then are typically available for normal options offered by exchanges.

Several types of Binary Optionscan now be traded online using a variety of binary options trading strategies.

High/Low:The most commonly available binary options are“High/Low”also known as“Above” and “Below”or“Call/Put”binary options. Basically, a trader will receive a payout on a long binary option if the market is higher than the strike price of an above binary at expiration, or under the strike of a below binary.

One Touch:Some online binary options trading platforms also offer“One Touch”above or below binary options that generate a payoff as soon as their trigger level trades in the underlying market… even before the expiration time.

Boundary:Another popular type of binary option is the“Range or Boundary”binary that is characterized by a range that is compared to the underlying market at the option’s expiration. Typically, an ―in‖ range binary pays off if the market ends up inside the range, while an ―out‖ range binary pays off if the market ends up outside the range.

Стратегии для бинарных опционов

О Разделе «Стратегии для бинарных опционов»

Стратегии для бинарных опционов – это набор определенных правил, используя которые трейдер анализирует движение актива и принимает решение о покупке бинарного опциона.

Лучшие стратегии для бинарных опционов построены на комбинации как стандартных, так и авторских индикаторов для бинарных опционов.

Прибыльные стратегии для бинарных опционов определяют не только нужный момент для покупки опциона, а и дают трейдеру возможность правильно определить время экспирации опциона, свой потенциальный доход, сделать его постоянным и уберечь от потери депозита.

Стратегии для бинарных опционов – это то, без чего невозможно получение стабильной прибыли при торговле бинарными опционами.

“Ladder” trend strategy – Olymp trade

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Many traders prefer to binary options trading because it let them spend less time in front of their computers.

We present you a trading strategy, which will be perfect for making profit on small time periods. Its working principle is the breakdown of the support and resistance levels. These levels are formed with the “shadows” of Japanese candlesticks.

What is a Japanese Candlestick?

Japanese candlesticks is a special representation of the price chart with the help of colored rectangles. Look at the picture – the rectangles really look like candles. The red candlesticks mean that the price went down, and the green ones indicate that the prise went up.

The line above a candlestick is its “upper shadow”. It shows what level the price has been able to achieve. The line below a candlestick is its “lower shadow”. It indicates the lowest price level for this time period.

Fig. 1 Japanese Candlestick Structure

How are the Support and Resistance Levels built?

Horizontal lines are built on the basis of upper and lower shadows of the candlesticks. One of them touches only the upper points of the shadows (it is called the resistance level), and the other touches only the lower points (it’s the support level).

Fig. 2 Local Support and Resistance Levels

Observe any price chart. Soon you will see that the price reaches its “ceiling” and then begins to drop down again. Having reached the “floor”, it starts moving upwards. To build the support and resistance levels, you need to draw a straight line through the upper and lower points of the chart. Note that the position of these levels will vary depending on the time period you have chosen.

You can change it on the top menu bar. If you choose “5 minutes”, each Japanese candlestick will show you the price movement within five minutes. And if you choose “1 minute”, the candlesticks will indicate how the price has been changing every minute.

Setting Up Our Strategy

This method can be used to trade both when the price goes up and when it goes down.

To begin work you will need the Japanese candlestick chart, which you can find in the “Technical Analysis” module on the OLYMP TRADE platform:

Open the currency pair you want to trade and select a time period (time frame) 5 minutes. You will only need this period.

Signal to trade “DOWN”

You should trade DOWN when there is a breakdown of the lower level on the previous candlestick of the same color. Look at the picture: right after the first red candlestick, the second one of the same color was formed. And it went down much more than the previous one had done. Now wait until this second candlestick pass the minimum of the first candle. Now you will be sure that the signal is accurate. At this point you can open the binary options “DOWN”.

If the trend is strong, you will be able to make up to 5-7 successful trades in one direction.

Signal to trade “UP”

You should trade UP when there is a breakdown of the upper level on the previous candlestick of the same color. Look at the picture: right after the first green candlestick, the second one of the same color was formed. And it went up much higher than the previous one had done. Now wait until this second candlestick pass the maximum of the first candle. Now you will be sure that the signal is accurate. At this point you can open the binary option “UP”.

If the trend is strong, you will be able to make up to 5-7 successful trades in one direction.

Results

The arrows on the chart indicate the moments when it was possible to trade. As you can see, the market often forms trends of several candlesticks of the same color. Note that you should not start trading until you have seen a second candlestick of the same color. This second candlestick has to be “longer” than the previous one and also it has to surpass either the upper or the lower level.

OLYMP TRADE Recommendations

The “Ladder” strategy works with any financial instruments such as currency pairs, metals, and oil. It is best to trade when the European session is active (especially within the first two hours which is from 09:00 to 11:00, Moscow time) or the American session is active (from 15:00 to 21:00, Moscow time).

However, when the important US news are released, this strategy should not be applied. Also note that the Pacific and Asian sessions (from 20:00 to 08:00, Moscow time) are not the best for using this strategy.

The trading time must be the same as the time frame of the candlesticks. In our case, it’s 5 minutes. Thus you will use the signals of this strategy as profitable as possible.

It will not be long before you learn how to use the chart and notice good opportunities for trading. Good luck!

General Risk Warning! your capital may be at risk

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Broker 2020!
    Perfect For Beginners!
    Free Trading Education!
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    Get Your Sign-up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

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