Financial Fixed Odds
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Welcome to the CleanFinancial.com guide to Financial Fixed-Odds
Quick and simple answers to the most common Financial Fixed-Odds questions:
Q) Where can I Trade Financial Fixed-Odds?
Q) What are the Main Fixed-Odds Trades / How do they work?
Q) What Financial Fixed-Odds Markets can I Trade?
Q) Where can I find Free Fixed-Odds Trading News?
Q) Where can I find Free Fixed-Odds Trading Charts?
Q) What is the Difference Between Fixed-Odds and Spread Betting?
Q) Where can I find a Free Financial Fixed-Odds Trading Platform / Software?
Q) Where can I find a Free Fixed-Odds Demo Account?
Q) Where Can I Trade Financial Fixed-Odds?
Financial fixed-odds betting offers an excellent way to trade markets with small limited stakes yet with big potential gains.
You can currently trade Financial Fixed-Odds at:
Q) What are the Main Fixed-Odds Trades / How do they work?
There is a wide variety of bets available eg:
- Flash Trades (short-term)
These are made available for short periods of time, eg a few minutes. They will pay out if the market rises (up bet) or falls (down bet) over that period of time.
Good for:
- Letting traders take advantage of very short-term trends
- Bets on US markets such as the Dow Jones, S&P500 and NASDAQ, especially around market moving news events such as the FOMC interest rate announcements
- Intra-day Doubles / Trend Multipliers
Traders who can spot stronger and more persistent trends can capitalize by using these bets to back a rise or fall in successive 15-minute to one-hour periods.
Bet duration: 30 seconds to 4 minutes
- Bull / Bear
These fixed-odds trades pay out if the market is either above or below a certain specified level at the end of the bet.
Bet duration: hours, days, months.
Good for: Taking a directional view of the market or hedging.
- Expiry Range / Expiry Miss
Chartists use these to make money when the market either finishes between a high (resistance) and a low (support) barrier or outside this range respectively.
- One Touch / No Touch
A One Touch trade pays out if the market hits the specified level within the chosen time frame.
A No Touch trade is the exact opposite.
These can be used in a number of ways, including backing a breakout from support or resistance.
- Barrier Range Trade / No Touch Range
These can be used to make money from range-bound markets by stipulating that the price will not hit either the specified higher or lower level during the life of the trade.
- The Up or Down Trade
This is a pure volatility trade. It pays out if the market touches either the higher or the lower level within the lifetime of the trade. Some traders use it with wide boundaries ahead of an important economic announcement in anticipation of an extreme move in either direction.
What Financial Fixed-Odds Markets can I Trade?
These days the financial fixed-odds operators offer a good range of bets and you should expect to see:
- Indices: FTSE 100 (UK 100), DAX 40 (German Index), S&P 500 (US SP 500 Index), Dow Jones (Wall Street Index) etc
- Forex: Euro / British Pound, Euro / US Dollar, British Pound / Japanese Yen, British Pound / US Dollar etc
- Commodities: Gold and Crude Oil
- Shares: A selection of UK and US equities
Also see - financial fixed-odds markets.
Where can I find Free Fixed-Odds Trading Charts?
You can get free charts with companies like BetOnMarkets.
You can alter the charts to see market data by the minute, by the hour, by the week etc. There are also a number of other settings such as easily adding Moving Averages, Bollinger Bands etc to help you analyse the charts. Example chart:
Q) What is the Difference Between Fixed-Odds and Spread Betting?
Spread betting lets you profit from a market going up or down. In the most simplistic terms, the more right you are, the more you win, the more wrong you are, the more you lose.
With spread betting, your liabilities are bigger than your stake.
With fixed-odds, your maximum liability is your stake.
Many Spread Betting Companies offer a Stop Loss so if the market moves a certain amount of points against you, your would bet would be closed. This helps protect your downside. However sometimes spread bets are closed due to a short term contra movement.
Let’s say you think Sterling will strengthen against the Euro and you make a spread bet with a stop loss 100 points away. The trade starts off going in your favour but due to an unfavourable economic release Sterling crosses your stop loss before rebounding. That would close your bet.
The main advantage of a fixed-odds trade over a spread bet with a stop loss is that the position cannot be stopped out early (apart from a One Touch bet). This means a bet could go wrong but then rebound and finish in profit.
A Big Win for Minimal Market Movement
Another difference between fixed-odds and spread betting is that you can still make a big gain with just a small market movement. Take the example of a “one-day Double Up” trade on gold.
The objective in each trade is to make a £100 profit.
The fixed-odds position would pay out if the price finishes higher than the entry point plus the spread. With the market at $850 and a spread of $1, this means that a bet costing £100 would give £100 in profit as long as gold ended the day anywhere above $851. A double bet pays a 100% return less a small factor which is the financial bookmakers margin.
An equivalent one-day spread bet with a stake of £3 per point would require a stop at 33 points below the current price to limit the potential loss to £100. This runs the risk of being stopped out early and would only make £100 profit if the price finishes 33 points up.
Having said that, your spread bet remains open if the market moves 40 points up, 50 points up etc so you still have the possibility of a larger upside.
In this case, if you are not expecting a big market movement then the fixed-odds trade might be the better option.
Why Fixed-Odds?
The point of fixed-odds trading in my view is not to say that fixed-odds is better than spread betting or CFDs or buying shares etc. Fixed-odds should be viewed as another string in your bow. Some days the markets suit a spread bet, other days a CFD, others a fixed-odds trade etc.
There is also the added benefit of reducing your risks by using different trading formats to hedge eg opening a spread bet but using a fixed-odds bet to cover extreme movements.
Q) Where can I find a Free Financial Fixed-Odds Trading Platform / Software?
Some of the trading firms offer software / trading platforms you have to download but most offer free web based platforms that allow easier access from home, the office and most other places with Internet Access.
The following also offer free live prices and candlestick charts:
Q) Where can I find Free Fixed-Odds Demo Account?
If you are looking for a free Practice Account / Test Account where you can trial financial fixed-odds, including Indices markets like FTSE 100, UK and US Shares, Gold etc then you can you can always try:
The above currently offers a free demo account.
The above comments do not constitute investment advice.
The author(s), Clean Financial and any company mentioned do not accept any responsibility for any use that may be made of them.
Advert:
BetOnMarkets >>
Live Prices and Charts, No Commissions, No Fees.
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Please Note: Financial fixed-odds can become addictive. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Financial Fixed Odds' by DB, updated 26-Jan-12
For related pages also see:
Financial Fixed Odds, updated 26-Jan-12
Your questions answered. Where can I trade Fixed Odds? What are the main Fixed Odds markets and how do they work? Where can I find...read article.
Financial Fixed Odds News, updated 22-Jun-09
Financial Odds News: It seems like the stock markets have lost their magic, as the FTSE 100 has dipped back into the red for the year. Concern over...read article.
Fixed Odds Trading w/c 29 June, updated 29-Jun-09
It was certainly a mixed week for world stock markets last week with Monday's opening slump almost being cancelled out by Thursday's strong rally. The S&P 500 just managed to nudge into...read article.
Fixed Odds Trading w/c 15 June, updated 15-Jun-09
Last week, equities were dead in the water, with no meaningful moves in either direction on all the world's major stock markets. The FTSE's weekly trading range was just 135, its lowest level since May 2008...read article.
Fixed Odds Trading w/c 8 June, updated 08-Jun-09
There was a mixed reaction to Friday's Non Farm Payroll numbers. Job losses came in at much less than anticipated causing short term volatility on equity futures and forex markets. Treasuries plunged and stocks surged at the open, but...read article.
Fixed Odds Trading w/c 1 June, updated 01-Jun-09
Funds are flowing out of 'safe' assets into riskier, more inflation resistant assets, such as equities, gold and crude oil. Oil and Gold in particular are in demand with...read article.
Fixed Odds Trading w/c 25 May, updated 25-May-09
Gold appears to be taking up the slack, as investors hunt for the combination of safety and inflation hedging that gold...read article.
Fixed Odds Trading w/c 18 May, updated 18-May-09
Markets were placed firmly on the back foot last week as the previous week's rally was strongly reversed. Dark clouds are gathering over the green shoots. A slew of poor economic data has...read article.
Fixed Odds Trading w/c 11 May, updated 11-May-09
Equity markets extended their winning run with the FTSE, CAC, DAX and S+P 500 all now up for 2009. The Nasdaq was the notable laggard last week. High tech share such as Apple, Google and Intel have been hit hard after...read article.
Fixed Odds Trading w/c 4 May, updated 04-May-09
US markets were also strong with Nasdaq 100 making it eight winning weeks on the trot. The rally came despite record continuing jobless claims in the US. However, it is thought that the...read article.
Fixed Odds Trading w/c 27 April, updated 27-Apr-09
The strongest performance came from the Nasdaq 100 which rose 3.24%, its 7th winning week on the trot. The Nasdaq was buoyed by...read article.
Fixed Odds Trading w/c 20 April, updated 20-Apr-09
Despite all this, it has been a relatively good week for the US Dollar, clawing back losses made in the early part of the week against...read article.
Fixed Odds Trading w/c 13 April, updated 13-Apr-09
One way to play this is through a No Touch bet with BetOnMarkets. A No Touch trade predicting that the Dow Jones (Wall Street) will not touch 10,000 at any time during...read article.
Fixed Odds Trading w/c 6 April, updated 06-Apr-09
Gold has remained in a relatively tight trading range over the last month or so a break out could be overdue. A One Touch trade predicting...read article.
Fixed Odds Trading w/c 30 March, updated 30-Mar-09
Markets shot out of the gates last Monday, and more importantly, managed to hold those gains for most of the week. The news flow continued to be mixed, but investors chose to take a 'glass half full' rather than a 'glass half empty' philosophy. For example on Wednesday, markets were buoyed by...read article.
Fixed Odds Trading w/c 23 March, updated 23-Mar-09
The massive influx of money from the US Fed and UK Treasury led to a substantial increase in both crude oil and gold prices last week. Crude prices pushed through the...read article.
Fixed Odds Trading w/c 16 March, updated 16-Mar-09
The euro enjoyed a strong week against the dollar and pound, pushing sterling to its lowest levels since...read article.
Fixed Odds Trading w/c 9 March, updated 09-Mar-09
Last week, major stock markets marked their fourth losing week in a row. The Dow fell 6.2% on the week while the S+P 500 fell 7%. S+P 500 hitting its lowest level since...read article.
Fixed Odds Trading w/c 2 March, updated 02-Mar-09
Gold is normally seen as a safe haven in troubled times, but last week the precious metal retreated further from the $1,000 level to close...read article.
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