from www.fintrader.net

Transcription

from www.fintrader.net
BetOnMarkets.co.uk
Can’t wait? - If you would like to take a look at the
betonmarkets.co.uk trading system and set up a demo account,
then please go to www.betonmarkets.co.uk
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THE SMARTER WAY TO TRADE
Imagine you had a hunch that the earnings from BP would be disappointing to
the market or that the US dollar would rise
against the British Pound in the next week
or perhaps that Abbey National would be
approached by HSBC Holdings in a potential merger. How would you go about
profiting from this? How would you make
money out of the Footsie losing 25% in a
year? How can you buy and sell shares
all over the world without major inconvenience to yourself? This is what we had
in mind when we launched
Betonmarkets.co.uk in 2001.
Fixed Odds Financial Betting allows you
to trade or bet on price movements, much
like those in spread betting, but the key
difference is that you have a managed loss
or profit. All bets pay a fixed amount (or
nothing) on expiry. In other words, when
you buy a fixed-odds bet from
Betonmarkets.co.uk, you are entitled to
receive a payout, which is a fixed multiple
of the amount you have staked. The
unique structure of fixed odds betting
means that under the umbrella of one dealing account, traders are able to deal in
many financial instruments including: Individual UK and US Stocks, Global Stock
Indices, and Currency Pairs.
With digital bets you always know how
much you may win, and how much you
stand to lose if the market moves against
you. If you want to bet £5, you can be
sure that you will only lose £5 should the
markets move against you. There are no
hidden surprises. This is very different from
financial spread betting where if you judge
wrongly, you might lose a great deal; over
and above the amount deposited. Digital
bets also offer several advantages compared to buying shares through a traditional stockbroker. There is no stamp
duty, profits are not subject to capital
gains tax, and punters can easily bet
down on a share price as well as bet up.
Unlike futures or stocks, when you buy a
fixed odds bet, you have no right or obligation to accept delivery of the contract,
share or commodity, as all settlements
are cash in nature.
"It's like
shooting fish
in a barrel!"
Jane Bollinger from
profitonmarkets.com
Bets can be customized in real time on
the website. All you need to do is to determine the desired payoff, the currency
pair (or equity or stock index), the target
levels, and the expiration date. The site
then delivers the price of the bet based on
the market conditions at the moment.
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BetOnMarkets.co.uk
Betonmarkets.co.uk is also enhanced with
unlimited historical financial data and
charts on the markets which you can mine
for the exact information you need to help
you trade successfully. These services
are free and very simple to use.
Once a bet has been executed this will
be displayed in your portfolio and you have
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the possibility to close your bet out before the final settlement, to cut your losses
or pick your profits out early. You can
also place market orders allowing you to
buy bets at lower prices than those
prevailing at the time the bets were priced
or 'stop loss' orders enabling you to
automatically sell bets back to us once
the market price hits a specified level.
HOW DOES IT WORK ?
1. Decide on your view on a particular
market direction - This may be the hardest thing to do, especially for the novice
trader. We offer our clients a variety of independent market information as well as
technical information, which can aid a
trader in determining their directional view
on the market.
2. Decide how much of a Payoff you
would like to receive should your view prove
to be correct.
3. Decide your time horizon i.e. the running period for the bet in question.
4. Calculate the cost - The cost of a bet
is dependent on current market conditions
and the likelihood that the bet will end up
in the money.
5. Once a bet is purchased the money
is debited from your Betonmarkets.co.uk
account and the bet will be displayed in
your portfolio.
correct about the movement of the Dow
Jones. You buy a BEAR bet to "Win £1000
if Dow Jones during the next five days will
be lower than 9270 points."
c) The computer system calculates that
the cost of this bet is £460. If you are
satisfied with this price, you can buy the
bet. If your prediction proves correct and
the Dow is lower than 9270 points after 5
days, then the bet will expire with a pay
out of £1000. Alternatively, if the Dow Jones
turns out to be higher than 9270 points on
the expiry date, then the bet will expire
with a value of zero.
d) You can sell your bet back to us before it expires, if you see the Dow Jones
going higher and there is a reducing possibility of winning the bet. Alternatively, the
Dow Jones may be falling and the bet is
worth more and you simply want to cash
in while you are ahead. The present price
of the bet, i.e. the amount you will be paid,
is re-calculated considering the current
situation on the markets.
For Example:
a) You decide, after analysing the Dow
Jones index, that in the next few days the
Dow Jones will fall and will reach a level
lower than 9,270 points (suppose the current level is 9,300).
"love the
website!"
J. Moyers .
b) You decide to win £1000 if you are
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BetOnMarkets.co.uk
Opening An Account is Easy
committing yourself to betting with real
money.
We pride ourselves in offering the easiest and lowest entry to financial betting
as you can open an account in less than
5 minutes and start trading with just £50.
You can register online, fund your account with a credit card or debit card and
start betting in just a few minutes. We
don't require you to fill in and send us any
fax application forms to create your account. You also have the opportunity to
create a virtual money account (i.e. demo
account) to test our system risk-free before creating a real money account and
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What are the Advantages of
Fixed-Odds Betting?
Make money on UK or US listed companies irrespective if the stock market is
crashing, booming or even trading sideways.
Your risk is limited to your stake at all
times yet high leverage is still possible;
you risk a fixed amount of money (purchase price of the bet), which constitutes
your maximum liability.
10 GREAT REASONS TO SELECT US
Instant, Easy, Simple and Flexible - Our
dealing platform offers near-instant executions (average 3 seconds) with unprecedented simplicity and ease of use. You
choose the closing time and date for all
contracts which can be as little as 10
minutes (as for the Intraday Doubles) from
the current time and as long as 6 months.
You choose your potential winnings per
trade and you never have to risk more than
you want to. You don't need to monitor
the bets or regularly follow the markets;
you can let contracts expire on the settlement date without having to determine
when to cut a losing position or to pick
profits.
Tax-Free Profits* - All bets are free of
tax in the UK.
The Demo Account allows you to try our
dealing system risk-free (paper-trade) before using real money.
You can close your bet at any time by
selling it back to us before the final settlement, thus effectively allowing you to play
the intraday fluctuations in the markets.
Bet on world indices, like the FTSE,
Wall Street, Nasdaq, S&P500 as well as
individual shares, gold and currencies.
Versatility - you can adapt or adjust your
positions according to any situation that
arises. This means you can do everything
from protecting a position from a decline
to outright betting on the movement of the
stock markets.
High Gearing is still possible - that is to
say you can win many multiples of your
stake (which is great when you realize that
your stake is the maximum you stand to
lose)
Minimize the risk, limit your losses - set
up triggers and stop loss orders to protect
your positions and automatically sell the
bets back to us once the market price
hits a specified level.
You can bet on the markets for as little
as £5 and as much as £50,000. You
choose your own bet size.
You don’t need to be wealthy to begin
with - You can open an account with as
little as £50GBP.
*Tax Law may differ if you pay tax in a
jurisdiction other than the UK. If in doubt,
please contact your local authorities for
clarification.
Trade Forex, Stocks and Indices from
one account and a single platform.
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BetOnMarkets.co.uk
One Touch Bet
You would buy a one-touch bet if you
believe the market will touch a given point
at least once before the bet expires. In
other words, a one-touch pays out if, at
any time prior to expiration, the market
touches or trades through the specified
barrier.
Example: [Pays £100 if the FTSE
touches X between today and date T]
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Illustrated Example
Suppose you had bought a one-touch
bet on the 16-Jun-03 (when the FTSE was
quoted at 4190.4 points) for a cost of £95
with a payoff of £1000 should the FTSE
index trade at or through 4087.9 at any
time within the 9 days which followed (i.e.
expiring on the 25-Jun-03). You would have
made more than 10 times your stake
(£1000/£95) since the FTSE traded
through the 4087.9 level on the 22-Jun03.
DIGITAL BETS EXPLAINED
In this specific example the FTSE hit
your one-touch target barrier before the
actual expiry date (payout triggered on the
22-Jun-03, but the one touch bet was due
to expire on 25-Jun-03) and this is all it
takes to trigger the payout. This is not
always possible since there is a risk/return trade-off but this example illustrates
how its possible to achieve high leverage
No Touch Bet
A no-touch bet is the opposite of the
one-touch bet. You would buy a no-touch
bet if you think the market will never reach
using digital bets and that its possible to
profit from bearish markets as well as from
bullish market trends.
Note: bet prices vary according to market
volatility and other factors. Price examples in this
document were valid at the time the document
was generated only.
a certain level within a specified range of
time.
Example: [Pays £100 if the FTSE does
not touch X between today and date T]
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BetOnMarkets.co.uk
Bull Bet
You would buy a bull bet if you believe
the underlying security/index/currency pair
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will be higher than a certain level (also
referred to as the barrier level) on the maturity date.
DIGITAL BETS EXPLAINED
Example: [Pays £100 if the FTSE closes
higher than X on date T]
Illustrated Example
expiring on the 17-Aug-03) the Dow Jones
Index is higher than 9400.
If you would have bought this bull bet on
Suppose that on the 12-Aug-03 the Dow
the 12-Aug-03 you would have risked a
Jones was quoted at 9271.76 points and
total of £75 (stake) for a potential payout
you predicted that the level of the Dow
of £500 (total payout including stake) if
Jones would keep rising and would reach
the level of the Dow Jones index turned
a level higher than 9400 in the 5 days
out to be higher than 9400 on the 17-Aug-
which followed.
03. Had you bought at £75 you would
have won more than 6 times your stake
So you would have bought this bull bet:
I wish to win £500 if in 5 days time (i.e.
Bear Bet
You would buy a bear bet if you believe
the underlying security/index/currency pair
will be lower than a certain level (also re-
since the Dow Jones closed at 9412.45
on 17-Aug-03.
ferred to as the barrier level) on the maturity date.
Example: [Pays £100 if the FTSE
closes lower than X on date T]
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BetOnMarkets.co.uk
Barrier Range Bet
You believe that the market will never
touch two pre-determined barrier levels
(high and low) before or on the date the
bet expires. In other words, when you
buy a barrier range you will win only if the
market never touches the two barrier levels you have chosen.
Example: [Pays £100 if the FTSE never
touches X and Y between today and date
T]
A Barrier Range Bet can be used as a
hedging tool against low volatility and
range trading. You can specify an upper
AND lower market level and as long as
the market does not touch ANY of these
barriers prior to expiration, you will be paid
your predetermined payout.
Illustrated Example
You think that Microsoft stock will
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breakout of its trading range of 26 or 32 in
the next twenty days, but I want to hedge
against low volatility and range trading.
You buy a twenty day (20 days) Microsoft
Barrier Range bet with 26 and 32 barrier
levels with a £5,000 payout for a £750
stake.
Suppose that Microsoft is currently trading at 29. Fifteen days from now:
Microsoft does not breakout and does
not touch 26 OR 32 = Earn £4250
Microsoft breaks out and touches either
26 OR 32 = Bet Expires Worthless, lose
£750 stake
In this example, if Microsoft breakouts,
you will benefit from trading profits. If it
range trades, you will at least receive your
predetermined payoff.
DIGITAL BETS EXPLAINED
Expiry Range Bet
Example: [Pays £100 if the FTSE
closes between X and Y on date T]
You believe that the market will be between two distinct levels (high and low)
on the expiry date.
Double Touch Bet
You believe that the market will touch
two pre-determined barrier levels (high and
low) before or on the date the bet expires.
In other words, when you buy a barrier
range you will win only if the market
touches both of the two barrier levels you
have chosen.
Example: [Pays £100 if the FTSE
touches both X and Y between today and
date T]
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BetOnMarkets.co.uk
Up or Down Bet
You win if the market touches either of
two pre-determined barriers before or on
the date the bet expires.
Example: [Pays £100 if the FTSE
touches either X or Y between today and
date T]
An up or down bet can also be used as
a hedging tool against a breakout in any
direction. You can specify an upper AND
lower market level and as long as the
market touches ONE of these barriers
prior to expiration, you will be paid your
predetermined payout.
Illustrated Example
You think that the British Pound/USD
will range trade between 1.520 and 1.680,
but you want to hedge against a break of
either 1.510 OR 1.690 in the next two
months. You buy a two month (60 days)
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Up or Down bet with 1.510 and 1.690 barrier levels with a £10,000 payout for a
£2,000 stake.
Suppose that the British Pound/USD is
currently trading at 1.600. A month and a
half from now (45 days) from now:
British Pound/USD breaks out and
touches either 1.510 OR 1.690; Returns
= £8,000
British Pound/USD continues to range
trade and does not touch either 1.510 OR
1.690 = Bet Expires Worthless, lose
£2,000
In this example, if GBP/USD continues
to range trade, you will continue to benefit from range trading profits. If it breaks
out, you will receive your predetermined
payout.
DIGITAL BETS EXPLAINED
Intraday Double Up Bet
Buy this bet to play a market rise between two given hourly market times today. You will have the possibility to set
the starting hour of the bet and the ending
hour of the bet, and you will win double
Intraday Double Down Bet
Buy this bet to play a market drop between two given hourly market times today. You will have the possibility to set
the starting hour of the bet and the ending
hour of the bet, and you will win double
your stake if the market follows your prediction.
Example: [Pays £100 if the FTSE rises
between the starting time hour and the
expiry hour]
your stake if the market follows your prediction.
Example: [Pays £100 if the FTSE declines between the starting time hour and
the expiry hour]
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BetOnMarkets.co.uk
Super Double
The Super Double contract is a bet on
the movement of a market between three
given times in the trading day. For example, you might bet that the market rises
between 9h00 and 10h00, and then rallies again between 10h00 and 11h00. If
you are correct, the bet will return a total
payout of approximately 4 times your
money. You also have the option of reversing the bet by selecting 'unless' in-
Vince Stanzione
stead of 'if' in the bet wording, and in such
case you would win if the market follows
any path except the one selected. The
total returned payout (including stake) in
this case would amount to approximately
1.33 times your stake.
Example: [Pays £100 if the FTSE rises
between 9h50 GMT and 10h00 GMT and
then rises again between 10h00 GMT and
10h10 GMT
from www.fintrader.net
“I have been trading financial markets for over 17 years
both for financial institutions and on my own account and
I have never seen such an easy to use platform as
betonmarkets. Thanks to Betonmarkets the private trader
now has access to the same tools that the big boys have
been using for years.”
Bet sensibly !
Financial betting can generate losses as well as profits - please bet
only with money you can afford to lose.
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