Financial Betting Sites
Before we begin, please note that entire books can be written on financial betting. Keep that in mind as you read this general overview of financials betting. We will get into more detail on these topics later but for now, we are going to keep this as a very brief overview and explanation of financial betting.
Best Financial Betting Sites
Financial betting sounds like a redundant idea because it’s based on the stock market and various exchanges around the world. The first thought people often have is if you’re going to bet on financials, why not just trade them like everyone else does? Well, there’s a subtle difference between betting and trading.
With financial betting, you don’t actually own the assets you are betting on. The bookmaker simply follows the market, sets the odds and you bet on the various trading instruments. It’s comparable to betting on a sports match that you watch but don’t participate in.
The biggest advantage to financial betting is that with fixed odds financial betting, your risk is limited to your initial bet. You can’t have unlimited losses with fixed odds betting like you can with other types of trading. Spread betting is a different story but we’ll get to that a little bit later.
Another advantage to financial betting is that it offers immediate liquidity. When you place a financial bet with a bookmaker, you pay in cash and you are immediately paid back in cash. You don’t actually hold assets and have to trade them.
The downside to financial betting is that you don’t own the assets you bet on. This means you can’t hold those assets and watch them grow indefinitely. Of course, owning assets also opens up a whole new door of taxes and regulations. In the UK, financial betting is considered gambling so you don’t have to pay taxes on your winnings.
Types of Financial Betting Markets
Below is an extensive guide to all types of financial betting available at online betting sites for real money
Individual Shares
Financial betting on individual shares is the most basic form of financial wagering. The process simply involves selecting a specific share and betting on whether that share will increase or decrease in value in a pre-determined amount of time. Finding shares on which you would like to place a bet will likely lead you to one of these following indexes:
- AIM (Alternative Investment Market) Shares
- FTSE (Financial Times Stock Exchange Index) 100 Shares
- FTSE 250 Shares
- DJ 30 (Dow Jones Industrial) Shares
- S&P 500 Shares
- European Shares
Individual share betting is also available in smaller markets, such as Ireland and Greece. A well-rounded individual shares bettor should familiarize his or her self with the action in all the markets - even the smaller ones - to find the shares that most lend themselves to this type of wagering.
Betting On The Stock Markets
Financial betting on the stock markets is the process of wagering on the movement of a specific market as a whole. Because the market's entirety is, of course, much greater than an individual stock, the opportunity for substantial profit - or substantial loss - in a short period of time is always there.
The history of volatility within a specific market should be carefully considered when selecting on which market you will place your financial bet. If you are a day trader with a lot of aggression, then betting on a market with a recent history of wild fluxuations might be the way to go.
Conversely, if you prefer action with a chance for decent profit, then more historically stable, or possibly smaller, markets might be the best bet.
Betting On Commodities
Financial betting in the commodities market is an avenue worth exploring to the financial gamblers. Generally, commodities have been seen as a more long term - or at least seasonal - investment. However, certain commodities can certainly see the occasional major fluxuation within the course of a day or even a few hours.
Oil and gold both have histories of volatility. For instance, a play in the oil commodities market during a time of strife or extreme weather prediction in the oil producing regions can provide some major swings in price.
When commodities such as oil go through fluxuations, they are quite often extreme, with sudden rises and collapses. This makes huge profits possible, but no more so than huge losses.
Betting On Currencies And Forex
Interest in the currency market at financial betting sites has piqued over recent years. One of the interesting aspects to betting on the currency market is that it is open 24 hours a day, outside of weekends. This allows day trading to turn into night trading, which can present more opportunities for a financial bettor.
The trade volume in currency betting is very high, but the room for profit is generally lower, due to less excessive, or wild, swings in the market. Financial betting on currency is not as high risk/reward, but if done properly, can turn a profit.
Bond and Interest Rates
Within the world of interest rate betting, one needs to understand the difference between short term and long term interest rates. Long term interest rate trading is, of course, held for longer periods of time. It is also important for the finance bettor to understand the difference between spread betting on foreign bonds, as opposed to buying them.
Buying foreign bonds exposes the investor to the whims of the currency converter, while spread betting on them insulates one from this variable.
Financial betting on bond and interest rates, like betting on currencies, is generally not as given to wild swings. Bond and interest rate betting is a good area for those with a sense of adventure, but who are not willing to take the truly big risks.
Financial Spread Betting Online
Financial Spread Betting is different than normal financial betting. It’s still in the same category but there is one major difference: in spread betting, your wins and losses are not limited to your initial stake. It’s nice to know you can have unlimited wins but it’s also frightening to know that your losses are also unlimited. The good news is that you can set stop loss orders that automatically close your position if the losses reach a point that you specify in advance.
Spread betting allows the bettor to wager on the movements of a certain stock, currency or other financial product. When you place these bets, you are wagering a certain sum of money on each point of movement of that product.
For example, let’s say you believe the price of a certain stock will go up in the near future. You buy into that trade at $10 per point. Now let’s say that stock moves up 7 points. You would make a profit of $10 x 7 points, or $70. If the market had instead gone down 7 points, you would have lost $70.
With spread betting, an entire fortune can be (and have been) made in very short order. At the same time, entire fortunes can be lost in very short order. Before you jump right into financial spread betting, it would be a good idea to read a book or two and practice online with demo trading.
Fixed Odds Financial Betting
Fixed odds betting, also known as binary betting, is the safest form of financial betting. In fixed odds financial betting, you place a simple wager on a specific financial instrument either going up or down. If the instrument moves in the direction you predicted, you win your bet. If not, you lose the bet.
With fixed odds financials betting, betting sites and bookmakers set the odds of certain events so you know exactly how much you have to risk and how much you can get paid if you win. There’s a set risk (your initial bet) and a specific payoff. With fixed odds financial betting, you either win or lose the bet. When trading in the stock market, your risk and potential payouts aren’t always known.
The risk you take on with fixed odds financial betting is limited to your initial stake. Your wins are also limited but that’s the price you pay for having limited risk. New financial bettors should start out with binary bets because of their limited downside.
Financial Flash Betting
Flash bets are wagers that are based on short term market movements. You can place wagers on the market moving up or down over the next X number of minutes. After that period of time has passed, you will either win or lose depending on whether the market is higher than or lower than where it was at the time you placed your bet.
One Touch Financial Market Betting
One touch bets are wagers that a certain asset will touch a certain level within a certain time frame. You get to choose the target price, the time period and the payout if you are correct. The betting site will then automatically compute how much this bet will cost if you are correct. The more difficult your bet, the less it costs.
Double Touch Betting
A double touch bet is perfect for especially volatile assets. This is a wager that the asset will touch one price above the current level and one price below the current level. The more difficult your bet, the more you make if it is successful.
No Touch Financial Bets
This is a wager that the asset will not hit a certain level within a time frame that you specify. If the asset has not touched that level by the end of the time frame, you win the bet.
Double No Touch Bet a.k.a. Barrier Range Bet
This is a great bet for stagnant assets. You set two price levels, one above and one below the current price. If the asset stays within those two levels during the duration of the bet, you win the bet.
Break-Out Financial Bet
This is a bet for volatile assets. If you think an asset is going to make a big move, but you don’t know in which direction, you can make a break-out bet. This bet sets two price levels, one above and one below the current price. If the asset touches either one of those price points, you win the bet.