What is the Ladder Bet and How Does it Work

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Types of Binary Bets – Ladder

In continuation of our series on binary options bets, we will discuss the Ladder binary option trade. It is a new variety of binary options trading which was introduced by IG Markets and is gaining popularity.

What exactly is the Ladder trade, and why does it get the name “Ladder”? A Ladder option is a type of binary option trade in which the trader is given a range of price levels which are lined at equal intervals like a ladder, for the trade to finish higher or lower than, at the end of the trading day. More simply put, a ladder binary option specifies that the market has to rise beyond a certain price level, after a certain period while the trade is active.

What this means is that there are several price levels to be set, and several periods to be set. The price levels are arranged just like the rungs of a ladder. For the trade to be successful, the asset has to have “climbed the steps” at certain times in order for the trade to be in the money.

Trade Example:

Let us imagine that the EURUSD is trading at 1.2789, and you want to trade a currency ladder binary trade with your broker. You want to perform a ladder trade with three price levels: 1.2750, 1.3023 and 1.3060. How do you trade this for the trade to be profitable?

In setting your trades, the first thing to do is to choose an expiration time, which for the purpose of this example, we will set to 2300hrs. The next thing is to look at the array of the trade this way:

  • EURUSD to be above 1.2750 1.20 (20% payout)
  • EURUSD to be above 1.3023 1.35 (35% payout)
  • EURUSD to be above 1.3060 1.50 (50% payout)

What does this translate into?

  • For trade number 1 to be successful, EURUSD has to close ABOVE 1.2750 (i.e. > or = 1.2751) by 2300hrs. The trader will then get a 20% payout.
  • For trade 2, EURUSD must be > or = 1.3024 i.e. must close ABOVE 1.3023 by 2300hrs for the trade to be successful. The trader will then get a 35% payout.
  • For trade 3 to be successful, the EURUSD must close ABOVE 1.3060, i.e. > or = 1.3061 by the expiration of the trade at 2300hrs. This will guarantee a 50% payout.

What this means is that the trader has to do his analysis on how the price action of the EURUSD will look like on the trading day, and then choose from any of the ladder trade options.

One strategy that a trader can use to play the ladder trade is the pivot point strategy. To use a pivot point strategy, the first thing to do is to plot the pivot points on the charts of your chosen asset using a pivot point calculator. This will show as three lines of support (S1, S2, and S3), a central pivot point and three lines of resistance (R1, R2, R3). The chart below illustrates how pivot points will look like.

Next, use the pivot points as guides to what the price could do during the day. Since we are using an intraday expiration, the trader could use a 1-hour chart for analysis. Typically, you would be looking at prices that are just above support levels for a bearish market, or in a bullish market, look for prices that are just above resistance levels that have been breached to become intraday supports.

With those points in mind, you can look at ways to set your trades, using these levels as a benchmark to set your ladder rungs. You would typically be looking at setting your ladder price levels at about five pips above the necessary levels. That way, you can be sure that your trade has a sure chance of success.

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You can trade the ladder strategies with brokers like IGMarkets. If you are a US citizen, then try using NADEX.

Please practice making simulated trade calls using a demo platform. You can download a platform from FxPro, a forex broker that also offers trading in crude oil, spot metals and index futures, hence it is a good place to practice trade calls.

How do Sports Odds Work?

When gambling on sporting events, odds determine the winning payout amount in relation to the amount that was bet.

Betting on rugby matches is common in Europe.

In the UK, odds are typically displayed as fractions.

Information about the health of starting players is used to adjust a game’s line before it starts.

Horse tracks allow for a number of different kinds of bets on races.

  • Originally Written By: K. Waterman
  • Revised By: A. Joseph
  • Edited By: L. S. Wynn
  • Last Modified Date: 11 March 2020
  • Copyright Protected:
    2003-2020 Conjecture Corporation

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Sports odds work by offering gamblers the chance to profit if they can correctly guess the outcome of a sports event or predict something that happens in sports. The odds represent the financial contract between the gambler and the bookmaker. The three main ways that sports odds are displayed are known as American odds, fractional odds and decimal odds. These three types of odds look different but represent the same thing: the payout for a winning bet in relation to the amount of money that was bet. Point spreads and over-under bets are other types of sports odds.

Casinos and sportsbooks profit when they have to pay out less than they receive in bets. They also collect a commission — sometimes called the “juice” — on certain bet to increase their chances of making a profit. Sports odds typically are set so that the bookmaker can expect equal betting on each side of the bet, which would ensure that the bookmaker would not lose money, no matter what happens in the sports event. If the bookmaker collected juice on each bet, the bookmaker would be guaranteed to profit if the betting on each side was equal.

American Odds

One common way for bookmakers in the United States to display sports odds is to show either a plus sign (+) or minus sign (-) followed by a number. Odds with a minus sign represents how much money must be bet on a favorite — the team or competitor that is expected to win — in order to win $100 US Dollars (USD), and odds with a plus sign show how much money would be won if $100 USD was bet on an underdog — a team or competitor that is not expected to win. For example, the odds for betting on a favorite might be displayed as -120, which means that a gambler must bet $120 USD to win $100 USD. The odds for betting on an underdog might be displayed as +115, which means that for a winning bet of $100 USD, the gambler would make $115 USD. In a sports event that has one favorite and one underdog, such as a football game, the number listed in the odds for the favorite is higher than the number in the underdog’s odds, which increases the bookmaker’s chances of making a profit.

Gamblers should be aware that when American odds are used, the total payout for a winning bet is $100 USD more than the number displayed. For example, if a man bet $120 USD on a favorite with -120 odds and won the bet, he would receive a total of $220 USD back from the bookmaker — his original $120 USD bet plus the $100 USD that he won. Likewise, if he won a $100 USD bet on an underdog with +115 odds, he would receive a total of $215 USD back — his $100 USD bet plus the $115 USD he won.

It is not always necessary to bet exactly the amount shown. A gambler might choose to bet much more than $100 USD or want to win more than $100 USD. For example, a woman could bet $3,000 USD on an underdog with +130 odds, and if she won the bet, she would get back a total of $6,900 USD — her original $3,000 USD bet plus $3,900 USD, which is $130 USD for each $100 USD of her bet.

Fractional Odds

In the United Kingdom and in horse racing everywhere, odds typically are displayed in fractions, such as 8/5, 3/1 or 10/1. When spoken, these odds are read like ratios, such as “eight to five,” “three to one” or “ten to one.” The first number is the amount of money that can be won on a bet in the amount of the second number. For example, if a gambler won a bet at 3/1 odds, he or she would win $3 USD for every $1 USD that was bet. Like American odds, the payout number does not include the amount of the original bet, which also is returned to the gambler. So a man who won a $250 USD bet at 3/1 odds would receive $1,000 USD back from the bookmaker — his original $250 USD bet plus his $750 USD winnings.

Decimal Odds

Unlike American odds and fractional odds, decimal odds show the gambler exactly what the payout will be based on the amount of the bet — the return of the original bet amount is built into the number. As the name implies, decimal odds are expressed in decimals, such as 1.50, 2.50 or 4.25. In these three examples, a winning bet of $200 USD would result in a total payout of $300 USD, $500 USD or $850 USD, which are simply the amount multiplied by the decimal shown in the odds. Decimal odds must be higher than 1.00, or even a winning bet would result in the gambler losing money. This method of displaying sports odds is popular in Canada, continental Europe and Australia.

Point Spreads

For a sports event in which a score is kept, gamblers can bet on who will win as well as the margin of victory. Betting on who will win is referred to as a straight-up bet or betting on the moneyline, and betting on the margin of victory is referred to as a point-spread bet. Point spreads are expressed in numbers preceded by minus signs for favorites and plus signs for underdogs, such as -7.5 for a favorite in an American football game and +7.5 for the underdog in the same game.

A bet on a favorite is won when the favorite wins the game by more than the point spread, and a bet on the underdog is won when the underdog wins the game or loses by less than the point spread. For example, if a gambler bet on a team at a point spread of +8 and the team lost by only six points, the gambler would win the bet. On the other hand, if a gambler bet on a team at a point spread of -6 and the team won by only one point, the gambler would lose the bet. Bookmakers typically set the point spread based on both the expected result of the game and what odds will bring in equal betting on both sides.

Point spreads are sometimes listed with odds for the bet, such as -7(-110), -7(11/10) or -7(2.10). All of these odds represent the same bet — a team favored by seven points, with winnings of $11 USD for every $10 USD that is bet. If no odds are displayed with the point spread, it typically is implied that the odds are -110, 11/10 or 2.10.


Another common way to bet on sports event in which a score is kept is the over-under bet, also called betting on the total. In this type of bet, the gambler is betting on the total points scored in the game, regardless of how many points each team scores or which team wins. For example, if the over-under for a basketball game is 180, a gambler could bet the “over” and win if more than 180 total points are scored or could bet the “under” and win if fewer than 180 total points are scored. Just like point spreads, over-under bets typically are implied at -110, 11/10 or 2.10 odds unless otherwise specified.

Other Types of Bets

There are seemingly endless other ways for gamblers to bet on sports. Just a few examples are future bets, in which the bet depends on a result that will take place much later, such as a betting before the season on which team will win the championship; parlays, in which gamblers bet on multiple things and must win all of the bets to receive the payout, usually at very high odds; and proposition bets, in which gamblers bet on very specific results, such as the points scored by a single player or the number of times a certain thing happens in a game. There also are over-under bets that involve things other than the total points scored, such as the combined number of free throws for both teams in a basketball game or the combined number of passing yards for both teams in an American football game.

About Us: What Does Ladder Do?

We get this question a lot. Whilst almost everyone is looking for new ways to grow their company, they don’t always understand or need what we offer. This post is our way of being transparent and helpful (two of our core values) so that nobody wastes time considering working with us when we wouldn’t be a good fit. If after reading this post, you’re nodding your head more than shaking it, get in touch:

Ladder is an ROI-driven growth solutions company. We help companies test new ways to grow through three major solutions:

1) Technology: we have a platform called the Ladder Planner that automates your marketing plan and acts as a system of record for your testing strategy.

2) Consulting: we work with you to develop your growth strategy and ensure you’re planning and executing each test in a way that drives results.

3) Agency: if you don’t have the relevant skills in-house, we offer a retainer-based full-service relationship where we execute everything for you.


Our Values

Whilst our technology and experience certainly help, our secret sauce is the way we approach marketing and what we value. It’s what has helped us attract and retain the best talent and repeatably drive success for our clients and customers. We have five main values:

1) Transparent: we’re honest with you, even if the truth hurts. For every test we clearly spell out our hypothesis, and if it fails we own that failure (and move on to something that does work).

2) Persistent: truth be told, we can be a little annoying. Expect us to chase you when tests are being held up. Don’t expect us to let up even after we’ve seen success.

3) Test-driven: we only trust data if it came from a controlled experiment. Quantitative and qualitative analysis helps us spot opportunities, but the case isn’t closed till we run a test.

4) Creative: some of the best marketing campaigns in history would never have worked in a spreadsheet. We work to make sure good, original ideas don’t get shot down.

5) Helpful: business advice, custom analysis, excel help, sense-checking, intros to investors, prospects and employees… we’re always on the lookout for ways to be helpful.

Our Process

Note: We expanded on this explanation in a blog post, which you can find here: https://blog.ladder.io/growth-hacking/.


Your strategist pulls together a weekly report detailing your marketing funnel (by channel) and digs deeper into the data to learn what is working (or not). They send across a concise summary explaining what they learned and why that matters for your business.


Now the strategist consults our tactic database (you can see an example here: https://ladder.io/playbook/?utmsource=blog&utmmedium=content&utm_campaign=about) which is sorted within the Ladder Planner in order of likely impact on your business. They choose the three tactics most likely to work based on everything they know about your business so far.


Each tactic proposed goes through two layers of approvals. First the strategist’s choices are ‘stress-tested’ by a panel of other strategists and senior leadership. If their logic and data holds up, they then pitch the tests to you on their weekly call for final approval.


All tests due to go live are built in the relevant platforms. They get a final check from another team member to catch any issues, and you’re notified as they go live. The budget, creative, tracking and test duration were all approved ahead of time, so there should be no surprises here.


We run final health checks going into the weekend to make sure no tests is exhibiting unusual behavior and that performance isn’t suffering. We make any optimizations and adjustments needed and then get on with in-depth training and post-mortems to share knowledge across the team.

Does it Work?

Ladder’s founding team developed the testing methodology the product is built on through decades of experience, spending over $40m across marketing channels for fast-growing startups and large corporations. At Ladder we’ve used this process to good effect, helping Y Combinator, 500 Startups, and TechStars companies grow and launch new products for global public companies. Over 1,000 tests launched across a database of 1,000+ tactics have contributed to our client’s success, with several exits, series A rounds and double-digit revenue growth.

While our approach won’t work for everyone, we’re confident that if it’s possible to grow your business, we’ll find the way.

At Ladder, we build software and offer services to help high-potential businesses accelerate their growth. Is that something you need?

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  • Binomo

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