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stock market trading for fixed odds

Updated on February 28, 2008

What is Fixed Odds Trading?

Fixed Odds trading allow you to trade or bet on price movements, much like those in Fi-nancial Spread Betting, but the key difference is that you have a managed loss or profit. Fixed Odds Trading is safer and what’s more it is easier to open an account with a Fixed Odds Trading Bookmaker and you need even less money to open an account. You can open one with just $5. Can I make money with Fixed Odds Trading?

Absolutely. Using the Insight Support Limited services and trading system will empower you to profit from either trading in Spreads or Fixed Odds. Some people prefer the fact of knowing how much they can profit from each trade, or indeed lose should that trade not go in their favour.

What is the difference between Spreads & Fixed Odds?

Trading the Spread is where you can make a possible endless profit or loss, which can be locked in with a Stop Loss order – you trade £10 per point, for each point up or down you make or loss money per point. Depending if you traded Long or Short. Financial Spread Betting is more volatile than Fixed Odds. Financial Spread Betting could be said to have gearing and leverage to its power.

Fixed Odds are different. You stipulate how much you wish to win and you are then pre-sented with a trade/bet price based on that value. If the trade you make goes in your fa-vour, you win that amount, if it doesn’t you lose the amount it cost you to open the trade. Fixed Odds don’t rely on gearing for profit. You have a FIXED profit and cost to open that trade. You decide how much you want to risk, by how much you want to win.

Will my knowledge in Financial Spread Betting help?

Without a doubt. If you combine the knowledge you have gained from Financial Spread Betting, together with the techniques you can learn at the end of this workbook – not only will you understand Fixed Odds better, but also be able to profit greater from your knowl-edge of Financial Spread Betting .

Can anyone open a Fixed Odds Account, as I’ve heard that American Residents cant open a Financial Spread Betting account in the UK?

Yes, anyone can open an account with a Fixed Odds Trading Bookmaker. What is more Insight Support Limited has developed a whole section of its website for Fixed Odds Trad-ing – so you can benefit even further.

How to trade in Fixed Odds:

Now we have answered your questions, I’d like to explain how the trading in Fixed Odds works. The terminology is different to that of Financial Spread Betting , but that is where the differences remain. From having read all about Financial Spread Betting , you will fully grasp the rest – so I wont teach you to ‘suck eggs’.

Double Up/Down Bets

There are currently two types of Double Up/Down bets: There is the standard Double Up/Down bets and the Intraday Double Up/Down bets.

1. Double Up or Down bets expire at the close of business the day the bet was opened. The bet pays two times the initial cost of opening the trade. For instance if you wanted to trade/bet $100 going LONG on the DJIA and being higher at close then when the trade was opened - you would win $200. This is known as a Double Up bet.

• Double Up – Open a trade/bet to win double the cost of the trade if by close of business that day, the choose market is HIGHER. This is similar to going LONG in Financial Spread Betting .

• Double Down – Open a trade/bet to win double the cost of the trade if by close of business that day, the choose market is LOWER. This is similar to going SHORT in Financial Spread Betting .

2. Intraday Double Up and Double Down. Intraday trading allows you to trade between two given hourly times, during that day. You chose an opening time and a closing time. By getting the market right, you win double the cost of the initial trade.

• Intraday Double Up - Open a trade/bet to win double the cost of the trade if by close of business from your choose start hour to closing hour, the choose market is HIGHER. This is similar to going LONG in Financial Spread Betting .

• Double Down – Open a trade/bet to win double the cost of the trade if by close of business from your choose start hour to closing hour, the choose market is LOWER. This is similar to going SHORT in Financial Spread Betting .

Expiry Bets

Expiry bets let you set a value of an Index on the close of business, on a set day by you, that is either higher or lower (dependant on Bull/Bear – LONG/SHORT trade) – if you’re correct you are paid the winning amount.

There are two types of expiry bet:

• The “Bull/Bear” bet – You decide if the market at the close of business on a given day is either going to be higher or lower than the barrier level you have set. If you’re correct you receive a payout.

• The “Expiry Range” bet – This bet lets you set a higher and lower limit, should the best stay within these two boundaries on close of business that day – you receive a payout.

Boundary Bets

Boundary Bets are paid out should an Index go past a set boundary target. The Index only needs to reach these set level once in order for a payout.

There are currently 5 types of “Boundary Bet”:

• The “One Touch” bet – The payout is triggered should the choose index touch (just once) the preset barrier you chose during that days trading.

• The “NO Touch” bet – This bet is the reverse of the “One Touch”. The bet is ONLY paid out if the price of the Index DOESN’T hit the set barrier limit you chose during that days trading.

• The “Range” bet – An extension of the above “No Touch” bet. Only this time there are two barriers and upper and a lower. If the bet stays within both the upper and lower set limits during that days trading, you receive a payout.

• The “Double Touch” bet – The bet is paid out should the trade touch two set trigger barriers, upper and lower.

• The “Up or Down” bet – The bet is paid out should the Index touch either the upper or lower price pointes set by you, during that days trading.

Run Bets

Run Bets are very quickly intraday trading bets, that can cover minutes, even seconds. Run bets vary from Fixed Odds Bookmaker to Bookmaker. Here are two common types of trade:

• Lucky 10 Digits Bet – Make 10 times your money if you predict the last decimal digit after 5 ticks of a given market.

• Quick 10% Bet – Make a 10% quick profit, if you can predict what the last digit of the 5th tick will NOT be.

All the above trades/bets are highly profitable ways of making money from the markets. Some people prefer them to Financial Spread Betting , in that you know exactly how much you are risking and all but one of the trades close at the end of business that day.

There are many Fixed Odds Bookmakers around. But the best and the easiest is www.betonmarkets.com

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