Do you know what a ladder option is?

If you want to win more initiative in the futures field, you must have your own advantages. And master enough futures knowledge and investment experience is king. However, many investors often do not pay attention to the study of futures knowledge, but only pay attention to investment practice. Wait until time flies, only to find that they should learn things is so much. In order to be able to let everyone every day harvest, do not regret the time flies, today I will introduce to you what is ladder option, for everyone to learn and reference.

In the field of futures, ladder option is a kind of more complex option, so investors need to seriously think and ponder, in order to understand its essence. In the ladder option, investors need to pay a higher price for it. Lock in profits. That sets the bar for investors who can’t afford the high prices. In order to break these thresholds, the option is set in several ways in addition to the line price. Cascade price & throughout; (rungs), which locks in a level of profit once the underlying asset price reaches a certain level. In this way, not only dropped the threshold, and let many investors get more profits. In the field of futures, there exists a concept of underlying assets, which mainly refers to the assets that can be bought or sold when exercising the option. Such assets that can be bought or sold are very beneficial to investors’ investment. In order to better let you know and understand the underlying assets, let’s take an example. If the current market price of a share is 50 yuan and the exercise price of a ladder call is 55 yuan, then different levels of ladder prices can be set. For example, three echelon prices of 60, 65 and 70 yuan can be set, so that profits can be made according to the three different echelon prices. If the stock rises to $59, the option holder will make a profit of at least $5 (55-50), which is very beneficial to the investor. Let’s say the stock goes up to $69, then locked in a profit of $15 (65 & NDASH; 50). That way, all sorts of steps go up and investors can sit back and wait for gains. In addition, the Ladder option is also known as the Ratchet option or the lock-in option.


So that’s what a ladder option is, and I hope it helps. In order to expand their investment horizons, investors must go to learn more basic financial knowledge.

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