An offshoot market for sports bettors is financial betting. Bettors place wagers on the price of a commodity on the stock exchange.
You place your bet on whether a stock or commodity price will rise or fall. The prices offered on these stocks and commodities are determined by a broker.
These financial bets allow you to wager both short and long on a wide range of markets, plus there are additional tax benefits as you do not actually own the commodities and stocks you are wagering on. This type of betting is as enjoyable as online pokies, and can be just as rewarding.
Connection With Stock Markets
The odds you receive on your finance betting market correlate with real-time pricing of stocks and commodities. This helps avoid arbitrage opportunities and keeps the market competitive and relevant.
The odds for betting on the market uses the special Black-Scholes formula to determine pricing and expected future and current volatility so that bettors can trade in a realistic manner.
Features Of The Betting Market
One of the main differences between financial betting and stock market trading is the fixed risk attached to your financial bets.
Basically the risk attached to the stock or commodity has been calculated to a specific amount which means you know the risks involved right off the bat. This allows you to make wagers confidently as compared to stock market trading.
You can also withdraw from a wager at any time before the wager is settled, limiting your risk even more by allowing you to opt out.
Leverage is also an important feature of the financial betting market. Basically leverage means that bettors do not need the huge capital injection required y stock trading. You can enter the market with a relatively low cash sum and still make big gains.
The Betting Odds
When taking part in fixed odds financial betting, the odds are predetermined and unchanging. Floating Odds betting is where the odds can change as the market changes.
These two odds systems are rounded out by Binary betting options. Binary bets feature odds that start at 0 and go up to 100.
When the item you have wagered on reaches 100, it means that the event you wagered on has happened and the bet is settled.
A 0 of course means the event did not take place. The specific event can either be bought or sold so it is possible to make a win from the event happening or not happening. The term binary betting comes from this idea that the event either happens or doesn’t happen.
There are two main tools that help bettors manage the risk they partake in at financial betting sites. The first is the Standard Stop Loss Order. These Stop Loss Orders will automatically close a losing trade once it reaches a set price value.
The Guaranteed Stop Loss Order will close a trade at an exact level set by the bettor. This is not entirely risk free as you may be charged an additional fee to take this option.
With stock market betting, you can find a great alternative or addition to your online betting on sports.
There are many benefits to financial betting and allows people from all walks of live to get in on the rewards the stock market offers without a huge capital investment.