Fixed Odds Trading - Simple Bets

OK, let's take a look at the types of bets available, and how we can use them in our fixed odds trading strategies. As you will see there are many different types ranging from a few minutes to hours days or even weeks. So if you are a scalping currency trader who likes to trade several times a day for a few minutes each time, then this is for you.

Alternatively, if you like to take a longer view of a stock over the next few days, but perhaps want to trade the short side, then fixed odds trading offers this option as well.

Fixed Odds Trading -  Simple Bet Types

There are many different types of bet available when using fixed odds trading, and I have broken these up over two pages in order to keep things as clear as possible. On this page we will start with some of the simple bets available, how they work and the markets they are available in, and then on the following page, have a look at some of the more complex bets.

Now there are one or two terms that may be slightly unfamiliar so I will explain them here before we start. The first term is 'barrier level' which is the level you believe a price may or may not achieve during the period. The second term is maturity date, which refers to the date of expiry of the bet (also sometimes referred to as a contract)

So let's start with some of the simpler ones! I have included a separate page on the site with some worked examples, so the following will just provide an overview of the types of trades available to you, along with a brief explanation.

• Bull Bet - also referred to as bull contract - you would buy a bull bet if you believe the underlying security, index, or currency pair will be higher than a certain level (also referred to as the barrier level) on the maturity date (also referred to as the expiry date) If the market is exactly at your target level on the expiry date you will lose the bet. A very simple bet which can be used in a variety of markets. Typically trading timescales are several days.
• Bear Bet - the reverse of a bull bet - you would buy a bear contract if you believe the underlying security, index or currency pair will be lower than a certain level on the maturity date. As with the above, if the market is exactly at your target level on the expiry date, you will unfortunately lose the bet. Again a very simple bet which allows you to trade the short side when prices are falling. As with the bull bet, timescales are generally longer rather than shorter for these bets.
• Flash Up - this does exactly what it says on the tin! The bet allows you to take advantage of immediate market movements based on ticks. Typically trades last from 2 minutes to 20 minutes maximum and it is a bet that the price will finish higher in the period. As with many of these trades, if the closing and opening ticks are the same, then unfortunately you lose the bet. These types of bets are great for currency traders who enjoy scalping for pips.
• Flash down - the opposite of the above with the same rules applying - here we are looking for the price to fall in the contract period. Again, a currency traders bet for scalping pips.
• One Touch Bet - you would buy a one touch bet if you believe the market for the particular instrument will touch a given point (sometimes referred to as the barrier or pre-determined barrier) at least once before the bet expires. In other words, a one touch pays out, if at any time prior to expiry of the bet, the market touches or trades through the specified barrier. One touch bets are less expensive, the farther the specified barrier is away from the market price, as clearly there is less chance that the event will happen. One touch bets may be long or short, depending on the markets and contracts being quoted as market conditions change. With this bet we are looking for strong price movement after opening the trade.
• No Touch Bet - the reverse if you like of the one touch bet. Here we do not want the price to touch the barrier point otherwise we would lose, therefore we are looking for a sideways trending market for a successful outcome.
• Run Bets - Now for the gamblers amongst you, these are purely fun bets, very easy to play and with no element of trading skill whatsoever. These bets are over in less than a minute, so you can lose money very quickly so please be careful and remember they are meant to be fun. Most of these bets are based around currency trades, and over a 5 or 10 tick period. In an up run bet, you would place a trade that the 5th tick was higher than the 1st tick! - equally a down run bet would be the 5th tick being lower than the first tick.
• Lucky 10 Digits -  another bet for the gamblers only! - if you correctly predict the last digit of a currency pair after 5 ticks, then you win 10 times your bet. Please remember these are just fun bets, so treat them as such.
• Quick 10% - ok, the last fun bet - after 5 ticks predict what the last digit will NOT be - if you bet on a 5 and the last digit is 6, then you win 10% of your stake.

OK - now let's take a look at some of the more complicated types of trades in our fixed odds trading.

Fixed  odds trading - next page