The Fundamental Concept of Financial Betting

Financial betting is rapidly gaining popularity in the betting industry. It means placing a bet on a financial instrument’s price development, against the odds given by a bookmaker. The bet is usually placed based on the current price or instrument of the financial instrument. In simpler terms, financial betting means wagering that financial instruments will act in a certain way, on a financial betting site. This is completely different from investing, rather, it is the same concept as placing a bet on the outcome of sporting activity. Your victory is certain if the market acts as you have predicted. 

Financial betting sites have a long list of bet types you can select from, depending on your preference. There are no grey areas when it comes to financial betting. You either win or lose. The prize is usually paid in cash and is usually fixed, unlike spread betting where the loss or gain is determined by the level of the underlying instrument’s price. Before the settlement date, you can sell your bet and have the opportunity to bet accurately as the market moves.  In this article, we will discuss the different types of financial betting.

Types of Financial Betting

Financial betting sites offer three different major types of bets that can be placed as regards financial betting. As always, read through the detailed lists below and choose your most preferred betting type.

• ·        Fixed Odds: Fixed odds wager involves placing a wager on whether a financial instrument will attain a certain price within a certain amount of time. For instance, you can place a bet that will price of silver will increase to a certain amount within the next six hours. A list of different price options will be provided by the financial betting site you are playing on. As it is with other betting games, the more likely an outcome is, the lesser your possible payout will be. The betting odds are usually fixed but the strike price where there is a win is determined by the current level fluctuations. 

The amount of money to stake to win a certain amount if your predictions are right is calculated by the fixed odds company. Also, you know the exact amount you are staking on the bet. Fixed odds are quite simple to understand and are a great place for players that are new to financial betting to start from. Another advantage they have over the other two is that they have a lower risk so you do not have to worry about losing so much. Fixed odds can be used on a wide range of financial markets like currencies, stocks, and indices. Also, note that you do not have to pay taxes on your profits from fixed odds betting!

·        Binary options: In binary options, you will place a wager on if a financial instrument or market will go up or down within a certain period. What distinguishes binary options from fixed odds is that in binary options, you do not have to pick a precise value. Binary options offer six types of methods for you to choose from.

The most common type of binary options offered on financial betting sites is the digital options. In digital options, you will be placing a wager on if the price of a financial instrument will increase or decrease at the time of expiration of that wager. For example, you can place a wager on if the price of silver will go down by the end of trading on a certain day. Financial betting sites give you the chance to place digital options on a wide range of financial markets.

The second type of binary option to discuss is the touch option. A unique feature of the touch option that differentiates it from the digital option is its specificity. In touch options, you place a bet on if the financial instrument will touch (hence, its name) a particularly high or low value before the wager expires. For instance, you can place a wager that you expect the price of a stock to reach $4,000 or $5,000 before the end of the day. If the price of that stock reaches $4,000 or $5,000 at any point within your wager period, you win. You should know, however, that the instrument doesn’t have to remain at the touch price at the end of your wager. What is important is that it gets to that high or low price before the wager expires.

Another type of binary option is the range options. Like every other financial bet, they are also available to be played on financial betting sites. As the name suggests, you are placing a bet on whether a financial instrument will expire within a certain range or not. If you place a wager that a particular instrument will end within a range, and it is within that range when the wager expires, then you win. You need a good understanding of the financial instrument you are betting on.

Turbo options, which are very similar to digital options, allow you to place a wager on whether the price of a financial instrument will increase or decrease within a short period of time. One benefit of turbo options is that you don’t have to wait for too long to get the outcomes.

The one-touch option is an alternative to the touch option. The distinguishing feature is that there is only one touch price in the one-touch option.

If you think turbo options are not fast enough, then try five-tick options. In five-tick options, you place a wager on if the value of an asset will increase or decrease in five-ticks. A tick is a shift in the price of a financial instrument.

·        Spread betting: This is the third type of financial betting. In spread betting, you will bet on which direction the financial asset will be moving in, and also how much it will move. You do not own the underlying financial instrument that you wager on.