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Financial Fixed Odds

Financial Fixed Odds are probably the simplest way to bet on the markets. If you understand how to back a horse then you understand how to back a market move.

With financial fixed odds prices are the usual fraction form we know and love with sports betting. 2/1, 7/2, Evens, and so on.

Therefore if the bet, "The FTSE to end up on the hour" is 2/1 and you bet £10 and you win the your winnings are £20 and you get your original stake back as well.

Example:

Brent Crude Oil to end up on the day is offered at 9/2. You bet £5.

In the event it does end up on the day so you get your original stake back plus £5 x 9/2 = £22.50.

Naturally, the better the odds the less likely your beloved financial bookmaker believes the event to happen. Therefore if we are offering the bet "Wall Street to be down at 8.25pm" at 33/1 you can be sure we don't think it will go down. However, events change - the markets move about - and that can be where your money is made.

If a bet is offered at 1/20 then at that moment your friendly neighbourhood bookmaker thinks the event is "nailed on" or a certainty. But events can change…

A good thing about financial fixed odds is that you know your maximum exposure when you place your bet because it is the amount you staked. This is a good way to start out betting on the markets because you can focus on the market moves instead of sweating over how much money you might or might not win or lose.

People Who Read This Also Read: About Binary Bets

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