Financial Range Betting
Financial market levels are constantly on the move and there are many factors which can drive them in an upwards or downwards direction. Therefore, it is no surprise that many bookmakers offer financial betting options that bypass the traditional trading methods. With a traditional agency, any speculator trading on the price of a commodity, currency of market index would have to pay tax and commission on each deal. By wagering on financial range betting with a bookmaker, these extra costs can be avoided.
These type of bets require the bettor to predict whether the price of a particular stock or market will remain within a specified range over a certain time period. If the market does not rise to the higher limit and does not to the lower limit, the bet will pay out. However, if it touches either limit, the bet will not pay out.
If we take the FTSE as an example and assume that the current market level in 5001.49. A punter may decide that the market is going to rise slightly by the end of the next hour. They might set a lower limit of 5001.49 (low barrier) and a higher limit of 5021.50 (high barrier). If the market does not touch either trigger during the hour, the bet will pay out. The bookmaker will set fixed odds for certain range values, so the potential pay-out or loss is also fixed.
Bettors can also forecast the final value of a market after a pre-determined time period. The bookmaker will offer a choice of market levels above and below the current level that cover a range time periods. The punter can choose one high level and one low level and bet at a fixed price that the market will finish between those two benchmarks when the bet expires. In this case, the market can rise above or fall below either of the ranges during the time period as long as it finishes inside the range.
So, if the FTSE 100 is trading at 5001.49 and the bettor believes the index will not move more than half a point either way in the next 10 minutes, they might choose a higher value of 5001.98 and a lower value of 5001 at fixed odds of 10/1. To win the value must fall between these figures when the 10 minute time period is up. A bet of €1 would result in a €10 profit.
This type of betting is only available when the markets are open. So punter that want to trade 24/7 will have to switch to different markets at different times of the day in order to place their bets. With popular markets in Europe, America and Asia covering the whole day, this is not a problem for those with a good knowledge of the global marketplace.
Financial range betting is also a great way for financial betting novices to learn how to bet at fixed prices. The risks and rewards can be calculated in advance so there is no need for the kind of capital outlay that spread betting requires to cover potential losses.
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