Binary betting is a relatively new addition to spread betting, but one which can appeal to anyone who wants the stability of fixed odd betting with the possibility of higher wins that spread betting can bring. This is because maximum losses are known from the outset in binary betting, which makes it much more appealing to anyone looking for stability in high volatility markets. Here’s how it works:
Binary prices always start with a figure and a deadline. Say you think that FTSE will finish above what it starts at tomorrow, and want to make a bet on it, but one where you know your maximum possible loss if the FTSE collapses. You see a figure quoted of 60-62. What does this mean?
Binary Betting offers two outcomes
Binary betting always settles on one of two outcomes: 0 or 100. It is a bet which is on something that either happens or it doesn’t, and in this case, the odds are being quoted are 60-62. This simply means that if you take the ‘over’ (in this case 62), and the FTSE does finisher higher than its daily start, it pays out the 100 outcome, and say you bet £1 per ‘point’, you win £1 for every point between 62 and 100 (+38). If the FTSE finishes lower, you lose £1 for every point below 62 and 0 (-62).
The odds are simply expressed as a percentage likelihood of an event happening, with your losses directly correlated to the units of percentage above or below the figure being offered, meaning losses and wins are fully established before a bet begins – something that makes them much more stable and predictable than spread bets.