Fixed Odds Financial Betting – What Are Financial Bets?

Fixed Odds Financial Betting does pretty much what it says on the tin. Its is regarded as the safest way to play the markets. If you put £10 on a horse to win at 2 to 1, you will either be leaving the bookies up £20 if it wins, or down £10 if it loses.

This is in essence how Fixed Odds works. The principles are pretty much the same as a traditional bookies, but we’re concentrating on financial betting here.

Fixed Odds is a great way to trade in the market, as once you’ve put your bet on you can walk away from your screen, which you shouldn’t do with other forms of trading. There are a wide variety of bet types available, and as online broking is relatively new, software is generally user-friendly, so you don’t have to get to grips with with complex screens – just concentrate on placing winning bets.

Although the process is quite straightforward, please read our Fixed Odds Financials guide below, or go straight to our Brokers Page.

Fixed Odds Bet Example

Lets start with a very simple bet. We’ll use a currency pair as an example, but the principal would be the same for the Dow, Oil or anything else;

  • You’ve logged onto to your Fixed Odds Broker and selected a ‘Flash bet’
  • These bets literally last minutes or even seconds
  • They are a very quick way of winning or losing money

The Bet:

  • You put on a stake of £25 that the Australian Dollar will go down against the Japanese Yen (AUSD/JPY) in the next 30 seconds.
  • It goes down, you win, and you get £25 back (plus your £25 stake).

Variations On A Flash bet:

  • Change to Yen going up against the Dollar
  • Change the currency pair
  • Extend the time limit (Intraday/super double bet)
  • Change the stake higher or lower for a higher or lower payout.

Other Bet Types

  • One Touch bet: e.g. the Dow will rise 50 points over the next week.
  • It doesn’t have to stay risen, just so long as it hits that rise of 50 sometime over the next week.
  • No touch bet: e.g. the Dow will not rise 50 points over the next week.
  • As long as it doesn’t rise over the next week you win.
  • Expiry Range : e.g. in 7 days The UK Index will be between 32,000 and 42,000
  • Expiry Miss : e.g. in 7 days The UK Index will be outside of 32,000 and 42,000

Advantages Of Fixed Odds Financials

  • You know how much you can potentially lose, your original stake, nothing more.
  • You avoid the risk and complexities of leverage, as their is none.
  • You can bet on most ‘instruments’ or ‘products’ – e.g. The Dow Jones, Horses, Gold.
  • If the market is having a bad day, you can still profit.
  • A large variety of bet types are available.
  • The most ‘time friendly’ trading platform.
  • (You don’t have to follow your trades as closely as other platform traders do).
  • Profits are tax free.
  • You don’t need margin to set up a bet.
  • Money management is not as complex as other Forex or Spread-betting

Disadvantages Of Fixed Odds Financials

  • If you put a bet on the FTSE rising, no matter how much it rockets, your winnings will not increase
  • But remember if you put your money on the FTSE going up, no matter how badly it performs, you lose no more than your original bet.
  • You can’t use leverage to increase your potential profit, however, some would argue that is a good thing – particularly for a beginner

Why Bet on Fixed Odds Financials?

Overall, Fixed Odds Financial Betting is one of the most suitable Trading Platforms for beginners, as although profits don’t rocket, they don’t crash and burn either. In short, its a safer environment in which to learn how the markets work and is suitable for playing without substantial capital. There are plenty of reputable Brokers, visit our Fixed Odds Broker Comparison, check out the details and see which one suits you.