Fixed Odds Betting is a Popular Type of Financial Betting

There are three different types of financial betting for investors to participate in and the most popular of which is fixed odds betting. Fixed odds betting is the wagering of a financial instrument against odds created by a bookmaker or on a betting exchange.

In this type of financial betting, the odds are presented normally in fractional odds with the first number representing how much one could win in relation to the second number, the stake size. A fractional odd of 4/1 means a trader stands to make £400 for a wager of £100. Traders who make wagers on fixed odds are awarded the winnings plus their initial stake.

Fixed odds financial betting can be found regularly in betting on sporting events. The bookmaker presents odds on a variety of sporting events which traders then place wagers. Financial betting such as this type has been around for years even before the Internet was invented. Fixed odds is such a popular type of financial betting because of its history among sporting fans.

Financial betting is a type of gambling event which is regulated by the gaming commission and therefore many traders participate in fixed odds investing.

How are Profits Calculated in Spread Betting?

Spread betting can make people large profits with only a small amount of capital wagered. That is because profits in spread betting are calculated by the point movement of the spread times the stake size. The more correct a trader is the more profits. Likewise, the more incorrect one is the greater capital lost.

In spread betting a bet is made on a spread of numbers. A trader may buy or sell the spread for a stake size of one’s choice. A trader places a spread betting buy bet on the spread 23-25 for a stake size of £2. The closing market price ends up being 35, a ten point difference, and is multiplied by the wager and the total profits are £20.

These spread betting profits could have been greater if the trader had staked £5 per point which would have resulted in £50. Another way the profits could have been greater was if the point movement had been more than 10 points. A 20 point movement would have resulted £40 in profits.

Calculating profits in spread betting is will give an approximate value if the bet is in the trader’s favour; however one can never predict the accuracy of the bet.

How is Currency Forex Trading Different from Other Markets?

Currency forex trading is very different from other markets and was mostly traded by financial institutions until technology provided an outlet for the general public to participate in this market. Most markets are traded on a major stock exchange, such as the London Stock Exchange, but currency forex trading does not have a regulated exchange. Continue reading “How is Currency Forex Trading Different from Other Markets?”

How Financial Spread Betting is Different from General Spread Betting

Spread betting is the wagering of the movements of different events or instruments. This type of investing can be separated into two parts, financial spread betting and sports spread betting. Sports spread betting is the wagering of the results of games, such as how many points in a game or which team scores the most points. Continue reading “How Financial Spread Betting is Different from General Spread Betting”