Binary Bets Explained
Like the more common financial spread betting, a binary bet is one that has a quote of a continual two-way price in the bid and the offer, and your stake is in pounds, or euros or dollars, for each point. The binary bet odds are based on an event taking place, and because of this, there is a quote from 0–100. The more likely it is that the event takes place, the higher the quote will be, and, conversely, the less likely it will happen, the lower the quote will be.
Basically, in financial binary betting, you are speculating if the price of an asset, in the future, will either go up or down. For example, you can take advantage of binary betting for the stock price of Apple, in stock market binary betting, the exchange rate between US Dollars and the Pound, or even the price of a precious metal such as gold or silver.
The time span is up to you in buying and selling, and because of this, you can trade many times daily in any market around the globe.
Binary Betting Example
Let’s take a look at a couple of examples of a winning and losing binary bet using the Financial Times Stock Exchange 100 Index (FTSE 100), which is a share index comprised of 100 companies that are listed on the London Stock Exchange with the highest funding in the market.
The losses and wins for binary bets are calculated by when buying the closing price subtracted by the opening price multiplied the how much your bet size is per point. For selling, it is the opening price subtracted by the closing price multiplied by how much your bet size is per point.
Here is a winning binary bet:
- The FTSE 100 market closing up on the day has a quote of 47-49. You make a binary bet, buying, at 49 points with a risk of one GBP per point.
- The FTSE 100 is nine points higher at closing for the day, and, therefore, your binary bet is closed at 100. The profit you make is £51, as it is 100-49, which is 51 multiplied by £1.
Here is a losing binary bet:
- If the FTSE 100 closes for the day at 61-63. You make a buy at 63 points with a risk of £1 per point. The market is down near the end of the day, closing at 1.5 points lower than at opening.
- Therefore, your binary bet has a 0 at close, and you will take a loss of 63 points, meaning you lose £63 (63 x £1).
In these examples, it is when the FTSE 100 closes, and when making binary bets, you can buy and sell at any time.
You can also shorten binary bets so that you can wager against an event taking place. The binary bets are quoted up to the time when the market closes.
Therefore, you can make a partial profit, a partial loss, and you even have the option to dump your bet before the time when it expires.
Different Kinds of Binary Bets
There are different binary betting options that will be offered by binary betting brokers. The main binary bets available are the daily up and down bet and the hourly up and down bet.
In the daily up bet, if the market closes higher (up) than the bet is 100 and if lower (down), it is 0. In the daily down bet, if the market closes lower than the bet is 100, and if it is higher, it is 0.
The same principle goes for the hourly up and hourly down bet, but you are only using one hour. For example, in an hourly up bet, if the market from 1-2 PM closes higher (up), the bet is 100 and 0 if the market closes lower (down) from 1-2 PM.
There are other binary bets that are also referred to as specials by binary betting sites. These types of binary bets work the same as the main ones above, as you are still wagering on an event taking place, and if it does happen, it will be 100, and if it does not, it will be 0.
One Touch Bet: Will the market go through a specific level (points) during the time period of the binary bet?
Hi-Low Bet: Will the high or low for today be a certain point distance from the market when it closed the day before?
Tunnel Bet: To win this binary bet, the market must stay within a specified range for the time period of the bet.
Ladder Bet: Will the market wagered on be higher than a specified price at a set time of the day?
How to Make a Binary Bet
Here is a basic binary betting system in terms of the steps to take to make a binary bet.
Pick a legitimate company and broker to bet with: You should do a little homework for the first step, as it is an important one. Find reputable binary betting companies and binary betting brokers to use when making bets and make sure they are legit and have the necessary licenses to trade on financial markets.
Choose the market or asset to make the bet: There are many assets that you can bet on in the finance industry, such as stocks, commodities, and Cryptocurrency, to name just a few. The price of oil, the stock price of Amazon, and the price of gold are just a few assets to bet on.
Choose the expiring time of the binary bet: The time options for binary bets can be anywhere from 60 seconds up to one year, so you have a lot of timing options when it comes to the duration of the binary bet.
Choose the amount that you want to bet: This is simple, as you just set the bet amount for the binary bet.
Take the action: When you have your bet set, then make an action in buying or selling, as the action buttons will differ between binary betting sites.
Confirm the bet: Often, binary betting brokers will let you look over the bet you want to make, ensuring that the details are correct. This gives you a chance to make sure it is the bet you want to make before confirming it.
Picking the Right Binary Broker
It is very important that you pick the right binary broker and binary company when making binary bets. Look at it as binary sports betting, as in sports betting, you want to pick the best online sportsbook for your betting needs, and the same goes for making binary bets.
Whether you are binary betting UK or worldwide, any binary betting system should have picking the best place to make your bets a top priority.
Do some research in finding legitimate and reputable binary betting brokers. Compare them and binary betting companies to make sure they are legitimate and have all the things that you want.
Many binary betting sites also offer bonuses and promotions for using them, and they are good to check out, as you can pad your betting/trading bankroll with bonus offers.
If you are new to how to bet on binary, then it may be a good idea to use low minimum deposit brokers or even set up a demo account. Low minimum deposit binary betting brokers let you make binary bets but with lower sums of money.
A demo account is a free account where you can try out a trading platform for free, and you do not have to deposit any money to do so.
Where can I do Binary Betting
Not all betting sites offer Binary betting. Most of the new betting sites offer Binary, but depending on your state of residence, you will find a different range of operators and betting sites, including this option among their offer.
Yo can check our US betting sites state selector to identify the best betting sites within your state.