Fixed Odds Trading - Frequently Asked Questions

OK - the last page and thank you for getting this far to learn about fixed odds trading and betting. Being a relatively new form of trading, there are always many questions, from both new and experienced traders, so I have listed some of the more common ones along with the answers.

Fixed Odds Trading - Questions and Answers

• What are the advantages of fixed odds trading?
• Fixed odds trading provides you with a limited risk method to trade markets with are trending up, down and sideways for a wide range of markets and instruments. Your risk is always limited to your stake at all times yet high leverage is still possible using a fixed amount which always remains the same throughout the life of the contract.
• Who are you trading against?
• You will be trading against the bookmaker who sets the odds for each bet.
• How does the bookmaker make a profit
• The bookmaker will include a small commission built into each bet. This will vary from market to market and is also dependant on market conditions. When you request a bet, you will always have the option to refuse the bet if you feel it is not advantageous for you.
• Are profits tax free?
• Yes in the UK at present as these trades are classified as betting, and not trading, but please take professional advice if you are unsure in your own country.
• When you open a bet over several days, what constitutes a day?
• All bets are priced using calendar days, not business days, and this is factored into the bet price quoted to you. So a 10 day bet opened on a Monday morning would expire on the Thursday morning of the next week.
• How are the prices quoted calculated ?
• A variety of methods  are used to compute bet prices. Some bets are priced using complex mathematical algorithms, based on option pricing technology whilst others are priced using simpler methods. Advanced pricing models take into account market implied volatility, the current market quote of the underlying market, expiry date, present market conditions and other contributing factors. Prices are weighted according to demand so that bets  in high demand will be priced at a premium to bets in low demand.
• Can I close a bet out early?
• Yes you can, either to mitigate any further loss, or to take a profit early. So even with a limited risk, you can reduce this risk further is a loss is occurring, by closing out before expiry.

OK, that's about it I'm afraid - thank you for taking the time to learn about fixed odds trading, and I hope you found the site both interesting and informative. Fixed odds betting isn't for everyone, but my own view is that it offers a very low risk way to learn how to trade, and I would suggest that any novice traders should start with fixed odds trading, before moving to the dangerous world of retail forex.

With fixed odds, you know you risk, and you can start with a very small amount of capital. More importantly you do not run the risk of being exposed to absurd leverages of 1:200 and more, which are now so widely available from the forex brokers. Just remember this - professional currency traders rarely use greater leverage than 1:10 or 1:20 as they know the risks involved.

So, start with fixed odds trading - you have a better than even chance of success! - please do keep in touch and let me know how you are getting on as I love to hear from you, and am always happy to provide answers to questions, or provide help and advice. If you want to follow my own fixed odds trading I have a blog which will give details of all my fixed odds trades which you can find in the navigation bar at the top of the page.

Good luck with all your trading and why not give the fixed odds trading a try - oh and please remember to claim your £20 free bet when you complete your application - just enter the promotional code : AC BOM