from www.fintrader.net
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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 2 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. 3 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 4 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 5 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 6 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. 7 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] 8 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] 9 BetOnMarkets.co.uk Bull Bet You would buy a bull bet if you believe the underlying security/index/currency pair 10 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] 11 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 12 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] 13 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) 14 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] 15 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. 16