At Stellar Finance, we make it a point to ensure that our trading services are adapted for traders of all walks. As such, we made Ladder Trading available. Ladder Trading though being essentially more focussed on traders having some form of experience, beginners are also welcomed to give it a try – we all need to start somewhere. What does it consist of? Here are the main points every trader should know.
What is Ladder Trading Tool?
Ladder trading is among the newest trading tools available in the industry. In fact, this tool was primarily created for traders with some experience in trading binary options as it requires some level of analytical skills to understand market fluctuations.
Traders need to have a basic knowledge of binary options trading to use the Ladder tool. For this, Stellar Finance has created an extensive Academy where traders can learn everything regarding binary options.
Traders using this binary options trading tool,will have to forecast the stage-by-stage changes in an asset’s price throughout a determined period of time. Provided that the quoted price moves in accordance with the trader’s predictions, the latter will earn several Return on Investment based on the different stages.
Hence, traders should be able to forecast the long term behaviors of an asset to capitalize on the profits as the trade position reaches the expiry time.
Now that you know about the different aspects of Ladder Trading, here are the steps needed to use this tool well.
How to make optimum use of Ladder Trading Tool?
As we mentioned above, trading using Ladder tool requires some basic understanding of binary options and of how the market can actually impact on the assets’ behaviors. The main steps into using this efficient tool are:
Choosing the asset
First of all, traders should choose an underlying asset from a wide range of assets available. This tool allows traders to place orders on currencies and commodities only.
Choosing the Expiry Time and the Investment Amount
The next step is to select the expiry time and an investment amount. The expiry time varies for different asset. It normally includes intervals of 15 minutes. The minimum investment amount allowed on our platform is 25 and it extends up to 1000.
Predict whether your asset will go above or below the strike price
Using the Ladder Trading Tool allows traders to place transactions on several strike times. Hence, for each stage traders will have to predict whether the asset’s price will go above or below the strike price.
However, before even deciding upon the asset’s behaviour, it is good to carry out some research on how the market is actually affecting the price movements of assets and focus on long term analysis.
Competitive edge of Ladder Trading
(1) High Payout: Depending on market fluctuations, payouts can reach up to 1500%, such a staggering payout is available only with the Ladder Trading.
(2) Several Strike Times: Related to the above point, Ladder Trading tool also allows traders to select multiple strike times. This guarantees a significantly larger margin of profits.
(3) Everything is live: Trading with Ladder Trading tool gives an overview of how the markets are evolving in real time. Hence, your trades are more accurate but on the other side, this also requires traders to make in depth analysis focussed on long term predictions.
(4) Several assets available: This binary options trading tool allows traders to select their assets based on a wide range of assets made available by Stellar Finance.
Our advices on trading with Ladder Trading Tool
Similar to other trading tools, while using Ladder Trading, some level of expertise and dedication is required from traders. Here are our top advices to traders:
- Begin by learning the basics of binary options. Ladder Trading is a challenging tool requiring traders to monitor assets’ behaviours over several strike times and as such, traders need to master the basics of binary options.
- Carry out some research about the parameters which impact on the asset so as to predict its long term behaviour. This is essential to understand how your assets will behave and what will be the outcome according to the different strike times.
- Investment amount is relatively low: As we mentioned above, the minimum amount required to place a trade with Ladder Trading tool is $ 25. This makes trading even more accessible to beginners.
- Traders should also be attentive to the varying payout amounts and systematically monitor the expiry time.