Fixed odds financial betting is a type of investing on the stock market to include a variety of financial markets. It is a simple type of betting and easy to understand.
Fixed odds financial betting involves the betting on a financial instrument, such as an index, with odds given by a financial betting company. The financial betting company will present odds that the price of the index will be a certain amount. The odds may be 5/2 which means the bettor could win £50 for a £20 wager. The bettor would need to front the wager. In this case, the bettor stands to win more money than deposited.
Some financial betting odds have the wager being more than the potential profit and these can be identified by examining the fixed odds. Odds with the numerator being smaller than the denominator signify that more money will be wagered when compared to the potential profit. An example of this is in the odds 1/4 which means the bettor could make £25 for a £100 wager. Odds like these in financial betting shouldn’t be avoided, in fact theses odds tell a bettor the likelihood of the event happening is great.
Fixed odds financial betting is easy to understand once one comprehends the idea of the ratios.