For the last few years Bet365 have been venturing into the area of financial trading, offering some interesting new opportunities for savvy bettors. Many people are dissuaded from getting involved in financial trading, believing that it’s all too complex and full of jargon, but in fact making financial bets is really pretty simple, as we are about to discover.
Bet365 offer markets on a number of currency pairs, which is basically the price of one currency measured in another currency. So in the example above, the GBP/USD pair is shown at a price of 113.687, which means that £1 GBP equals $1.13 (more or less) in USD.
The other betting market on offer in the Financials section is to bet on stock exchanges via FTSE (an index fund representing the UK stock exchange), DAX (an exchange traded fund for the German stock exchange) and a few others.
Whether you want to bet on currency pairs or exchanges, you are basically only required to say whether you think the price will increase or decrease over a specified period of time.
Once you have decided which market you want to bet on, you will then need to decide whether you want to choose Static Odds or Moving Odds. The value of stock exchanges and currencies changes all the time from one second to the next, and if you choose a Moving Odds bet like the one shown below, the odds (in yellow) will keep changing right until you make your selection.
If you prefer, you can choose Static Odds for the same market in which case the odds remain the same, but the ‘Higher Than’ figures change all the time until you make your choice. You would choose this option if you have a fixed idea of the odds you want to get, and can wait until the ‘higher than’ price is acceptable for you.
The chart above shows a duration of 5 minutes has been selected, so you would be betting on whether or not the price of the USD/CAD currency pair gets higher than the price you select within the next 5 minutes. You can choose to change this to an hourly or daily time duration if you prefer. You can also see that the odds shown above appear in Fractional format, but you can change this to Decimal, Binary or Spread according to your wishes.
The only difference between Fractional and Decimal odds is the way they are presented. UK bettors may be more familiar with fractional odds while the decimal format is regularly used in the States. When you choose a Binary odds format it’s a little bit different.
The chart above shows a Static Bet on the CAD/USD market using Binary prices. We have chosen to say that the price will finish higher than 1.32411 in 5 minutes time, and as you can see the Binary price shows a figure of 0.166. This may look a little strange, but in a Binary bet you choose the amount you want to win and are shown how much that will cost you. So if we decide that we want to win £1.00, we can see from the bet slip below that this will cost us 17 pence (rounded up from £0.166).
The final option is the Spread Bet, which is where you must be particularly careful. The screens below show a Static Odds Spread bet, and we have chosen ‘Sell’ at a price of 1.32041. This means that we believe the price in 5 minutes will be the same as or lower than that price.
The difference between Spread bets and the other types of bet is that here we are betting per unit. So even though the unit stake we have chosen is just £1, the total stake is £90. This is because the ‘Sell 10.00’ figure is basically a percentage figure based on how likely it is that your bet will fail. In this case Bet365 are saying that it is 90% probable that you will win, so for you to win 10.00 times your stake of £1, you must first bet £90 and if you are correct you will win £100.
If you want to ‘Buy’ or say that the final figure will be higher than the start price, then in the example below Bet365 are offering you a price of 16.66, which is their calculation of the likelihood of your winning. In this case you must bet a total of 16.66 x £1 to get a return of £100.
To put it simply, if you choose Buy then your stake will be multiplied by the figure shown, and if you choose Sell it will be multiplied by 100 less the figure shown, like this:
|Buy||unit stake x 16.66||£16.66 total stake|
|Sell||unit stake x 100 – 10.00||£90.00 total stake|
Be warned that Spread bets are not for the novice trader, so if you are not completely comfortable with the concept then stick to one of the other bet types or you could risk losing a lot of money.
Hopefully this has removed some of the mystery attached to Financial bets. The secret to long term success in this market is by paying attention to the new, and in particular events which can cause currencies or markets to rise or fall in value. To give you just one example of this: countries which export oil are affected by rises and falls in the value of that commodity, meaning that if world oil prices fall then generally the Canadian dollar will also fall in value.
Pay attention to how global events (elections, extreme weather, commodity prices, etc) affect different markets and you can make a killing on Financial bets at Bet365.