Ladder strategy - High winnings through levels

binary options test winnerBinary options can be traded using a wide variety of trading types. One of these trading types or strategies is the ladder strategy, which is currently only offered by a few brokers and can therefore be used. These brokers include GOptions, CapitalOptions and GTOptions.

But what is so special about this strategy that we at Forexaktuell.com present it and recommend it to you as a trading method? When is the ladder strategy worthwhile and when would it be an alternative for your binary options trading? We would like to analyse and explain all this and much more for you in this article.

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The unknown brokers

You are probably wondering which brokers we have just listed. After all, these names are rather unknown in German-speaking countries. And you are right. The three brokers who currently offer the ladder strategy are really only represented to a limited extent in our part of the world. One reason for this is the fact that these brokers do not offer German-language support. This is less nice, but can be compensated for quite well by other advantages.

And these advantages are quite impressive. They all have a free demo account that allows you to try out the new trading method without any problems. And without risk and without the pressure of being able or having to use and lose your own money for the test.

In addition, the brokers offer their investors a very well-structured video tutorial which, alongside a free eBook, explains binary options trading very well and also illustrates it. In addition, the providers' trading platforms are also offered in German. The charts are clearly laid out and very detailed. The only thing you have to accept with these brokers is that telephone contact or contact by e-mail is only possible in English and not in German.

All other aspects of the broker are very conclusive and definitely worthwhile. If you are fluent in English and are looking for a good broker for the ladder strategy, then we can definitely recommend the brokers mentioned above. Just test it out at your leisure. You will soon realise that German-language support is not really necessary in order to be able to trade well and safely.

Registration and trading

Once you have decided to place your trust in one of the brokers, the first step is to register with the broker in question. This is just as easy as with any other broker and only takes a few minutes. Please enter the required details and confirm them by e-mail. Your registration will then be processed quickly and you can open a customer account, which you will need for trading binary options.

A minimum deposit of 250 euros must be made into the account. A wide range of deposit options are available to you for this. Just as you are used to with all other brokers. You must then stake at least 10 euros per trade. These are completely normal figures that you will also find with many other brokers. Withdrawals are also offered in various ways and are possible several times a month. Here too, there are no significant restrictions or changes compared to other brokers.
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How the ladder option works

But now to the ladder option or strategy, which is relatively new and therefore particularly exciting. It is primarily intended to appeal to experienced traders and offer them an additional incentive to trade binary options. If you are not yet an "old hand" at trading, this does not mean that the ladder strategy is not for you. Nevertheless, try it out and see if this strategy suits you. However, place your trades carefully and always make sure that you do not speculate.

The ladder strategy works with the help of a chart that shows the current price and a history of the price. This "historical" display can range from half an hour to eight hours, depending on the duration of the trade. A ladder is then placed over this chart. This ladder usually has five levels and shows price limits set by the broker. A call option or a put option can be placed on each of these price limits. You can therefore use this ladder to place five options for a rising price and five options for a falling price. However, you do not have to fill all the ladder levels, but can also select individual levels.

The further away the step of the ladder you want to bet on is from the current price, the higher your potential return will be. This is because the higher the risk involved. If the step is very close to the current price, the return is correspondingly low. However, if you choose the level furthest away and you end up being right with your assessment, the return can be up to 1,000 per cent or more. The 10 euros you bet can quickly turn into 10,000 euros.

Please note that this trading system must be regarded as a dynamic system. The broker can and will permanently adjust the position so that the returns also change permanently. The duration of the trades to which the ladder strategy can be applied is between ten minutes and twelve hours. You can participate in a speculation and place a deposit up to 10 minutes before the trade expires.

Different strategies within the ladder strategy

Every investor pursues their own strategy, which aims to achieve a good return in the end. You can also proceed differently with the ladder strategy. For example, it is possible to bet on a stagnating price. To do this, set two price thresholds between which the current price moves. If the price remains within this range, you have definitely won. Regardless of whether the price rises or falls.

However, you can also use the trend-following strategy with the ladder strategy. To do this, observe the price and its development. Then place your trade in the direction in which the price has recently moved. For example, you can place your first trade on the first rung of the ladder upwards if you think that the price will continue to rise. Then also place a trade on the second rung of the ladder. If the price rises above the first rung of the ladder, you have achieved a call option. If the price does not continue to rise significantly and remains below the next step you have bet on, you also have a put option, which also guarantees you a profit.

The returns on a ladder strategy

As long as you take a broad position with the ladder strategy and do not risk too much, this is a very safe strategy. Of course, brokers are also aware of this and adjust their returns accordingly. As an investor, you can only expect a return of between ten and twenty per cent on a safe position that you take when you bet on a level that is very close to the current price. At first glance, this may not seem like much. But if you are a small investor and can gradually build up a small fortune through this fairly safe strategy, you will quickly appreciate this safe route with the modest return.

If, on the other hand, you take a higher risk, this will also be reflected in the return. With a return of up to over 1,000 percent, even the biggest sceptic will soon be satisfied. However, you must assume that such a return is very difficult to achieve. Therefore, don't get stuck on it and start at a lower rung on the ladder. That way, the proverbial fall won't be too painful and will be easier to cope with.
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The special features of the ladder strategy

The ladder strategy naturally thrives on its dynamics. With another Trading with binary options you are dealing with variable returns. These are actually always fixed. In addition, the ladder strategy allows you to combine fairly safe options with speculative options, resulting in a broadly diversified position. We can only hope that other brokers will soon discover this strategy for themselves and make it available to their investors.

Perhaps you have now become interested in the ladder strategy. It is very easy to use and, with a little expertise and patience, should lead to a good return that can gradually build up. If this is the case and you would like to try out this strategy, then contact one of the brokers already mentioned. They will provide you with the right platform and the right environment.

Conclusion

The ladder strategy is a great way of trading that is unfortunately not yet very well known in our part of the world. But if you can decide to place your trust in a foreign broker without German support, then this strategy can be your personal key to success. This is because it can be applied without much effort and promises a good return coupled with the security that binary options trading generally provides.

 

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Simone Aescher is the founder and operator of the successful crypto blog aescher-ai.ch.

After studying business administration at the Frankfurt School of Finance, she gained over 5 years of professional experience in the financial sector. However, her passion has always been the financial markets and investments.

In 2019, Simone Aescher finally turned her hobby into a career and founded her blog. She shares her in-depth knowledge of shares, ETFs, cryptocurrencies and much more.

As an active trader, Simone is constantly testing new brokers, robo advisors and trading apps. With her honest product reviews, she helps her readers to separate the wheat from the chaff.

With her academic background, many years of experience and practical expertise as an investor, Simone Aescher combines the ideal prerequisites for competently analysing and evaluating the financial markets.

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