Binary Betting Explained
Developed by the Spread betting firms, binary betting is a type of financial betting that acts as a means of speculation when viewing the current markets. Binary betting is only used by a select few brokers in the world, and like spread betting, it is exempt from tax.
Choosing The Right Broker For Binary Betting
When deciding to use binary betting, finding the right broker is possibly the most important aspect. One of the reasons there are not many brokers who deal in binary betting is because the broker needs the right tools and access to the proper systems to make any sort of betting. Brokers utilising binary betting can therefore choose their fee freely, and it’s important to find a broker with fees that are financially viable.
How Binary Betting Works
It is important to note that binary betting is similar to fixed odds betting, where the maximum profit and loss is already known before the bet is actually made. These limits are already known because the binary market cannot exceed 100, or drop below 0.
To start with, a winning binary bet example is as follows: Examining the market and assuming that a certain trade will increase by a certain amount by the time the market has closed for that day. The better then wagers on the quoted closing amount, spending a fixed number, such as $1 per point. If the market closes and the quoted amount is exceeded, the bettor makes a profit, depending on how many points the market has increased by.
Alternatively, a losing binary bet example is when a bettor makes the wager on an assumed number that the market is going to close on, and by the time the market is closed, the quoted number is lower than expected, and money is lost.
Binary betting is a very flexible type of betting, where bets can be made at any time until the market closes for the day. This means that it’s possible to make partial profits or losses, or even the chance to completely dump the bet before the day expires.
Different Types of Binary Betting
There are four main binary bets that are commonly made. These are known as the daily up bet, the daily down bet, the hourly up bet, and the hourly down bet. The two daily bets are concerned with the results at the end of one marketing day, while the hourly bets are made at certain periods during the marketing day.
Furthermore, along with the main binary bets, there are set of other bets that are special. These include the one touch, the tunnel, hi-lo, ladders, and extreme short term bets.
Binary Betting Overview
Binary betting is seen as both volatile and flexible, with certain advantages and disadvantages. While using binary betting gives the bettor more flexibility when making bets, which is always considered a good thing, it can be difficult to predict what will happen with the bet. Many believe, however, that learning to use binary betting is advantageous in the long run.