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Financial betting is rapidly growing to become one of the hottest investment options for people across the world. It is cost-effective and lucrative in a variety of ways. More importantly, it opens up the world of financial markets to literally everyone out there. Investors don’t have to go to a stockbroker to bet on financial markets Financial betting allows them to make investments from any of the hundreds of stock market betting sites which also double up as sports betting sites. That’s right, financial betting and sports betting have a long history together.
Today, many of the sports betting websites allow their players to bet on financial markets by providing them financial betting services. More often than not, players from a vast number of countries can place bets on the stock market trends and fluctuations happening in completely foreign countries, which would otherwise be unavailable to them.
Financial betting offers many advantages over stock market investments. Firstly, there is no need to approach a stockbroker, which saves the investors a significant amount of money in fees or commissions. Secondly, stock market investors usually have to pay a variety of taxes including capital gains tax. Financial betting does not come with any tax implications. Lastly and more importantly, smart investors can make money whether the stock markets are booming or crashing.
When you register to bet on financial markets, you always look for a stock that is going upwards. You carefully take into account the company’s financial fundamentals, the economic and political risks it is exposed to, study its recent trends, and gather all information you can find on the company. You assimilate all of this information to arrive at a rational conclusion as to whether the respective company’s stock is going up or down. If you feel that its stock is going up, you invest in it. Whenever you feel that the stock is going down, you sell. Once you purchase a stock, you hold a small ownership in the company. You are literally invested in the growth of the company. You not only stand to gain from the price appreciation, but also from the dividends that the company hands out, if it ends up making a profit. As you can imagine, stock and derivative investments are long term investments.
On the contrary, financial betting allows you to bet on the growth or fall of the company. You are not invested in the company in any way. You don’t have to shell out huge sums of money, as required for the stock market investments. You can make loads of money with financial betting by betting on a fraction of the money. However, the losses can cause you to lose more money than what you had invested. More on this later.
In the case of financial betting, you never own any asset, be it stock or derivative. You simply bet on the possibility of the asset’s value going up or down. This too requires a significant amount of research, intuition, and experience to be accurate.
Financial betting offers a bevy of advantages over stock market investments. Here are some of them:
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Stock market betting sites typically offer 3 types of financial betting options to their players.
In the case of fixed odds betting, you know exactly how much money you are risking by placing a bet. Typically, players can place bets that a particular stock will move above or below a particular level. If the movement happens in their favour, then they win the bet. If it does not, then they lose their betting money.
 | Many of the stock market betting sites offer 3 variations of fixed odds betting. In the first case, the player places odds against bets. Suppose the player places a £10 bet at 5/1 odds. If he wins the bet, then he will get £50, in addition to his £10. If he loses, then he loses only his £10. In the second case, the player places even money bets. Suppose the player bets £10. If he wins, he gets £10 in addition to his £10. If he loses, then stand to lose the £10 that he had wagered. Pretty straightforward. In the last case, the player places odds on bets. Suppose a player places a £10 bet on 1/5 odds that a particular stock will behave in a specific manner. If he wins, then he stands to get £2 in addition to the £10 that he wagered. If he loses, then he loses all the £10 that he had wagered. |
The most important characteristic of spread betting is that it comes with virtually unlimited liability. The losing player may potentially lose an unlimited amount of money. Despite the high risk, it is the most popular financial betting option among the players because it brings huge profits. The size of the win or loss is dependent on the degree of movement of the underlying financial instrument. The better it performs in your favour, the more you win. The worse it performs, the more you lose.
Here, the betting website offers a buy price and sell price. The difference between these two prices is the spread. If the player thinks that the price is too high, they sell. Conversely, if the player thinks that the price is too low, they buy. In simple terms, the more right a player is, the more he stands to win. Likewise, the more wrong he is, the more money he stands to lose. That’s why the unlimited liability.
Binary betting is similar to spread betting, minus the unlimited liability. The odds offered are on an index of 0 to 100. In the case of binary bet, the outcome is binary – either it will happen or it won’t. If your prediction is correct, then your winnings are in line with how much right you are. Likewise, if your prediction is wrong, then your losses are calculated by how much wrong you were. Unlike spread betting, however, you know exactly how much you stand to lose in these bets.
Financial betting has always been immensely popular among the general masses because of its easy access. Investors don’t require a fortune to make the investments. Naturally, the number of stock market betting sites offering this service is also rapidly growing. With the advent of the internet, more and more gamblers are rushing online to make money off of financial betting. By offering RTPs of about 93%-96%, these websites are making a killing. Naturally, financial betting development services are in huge demand. Our software development agency with highly professional casino game developers also creates the web apps that support financial betting for the online gambling sites. With the demand for financial betting on the upswing, the gambling sites and the developing services are raking in huge profits.
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