What is Financial Binary Betting?

Binary betting offers you a simple but dynamic betting experience, as it works on a ‘yes’ or ‘no’ principle.

Financial binary betting with your Capital Spreads account offers a great betting challenge and increased volatility on those days when the market is hardly moving.

What are the benefits of Financial Binary Betting?

• All trades are 100% limited risk. When you place a bet, you will always know in advance what you can win, and what you can lose. So whether you bet big or small, you are always in complete control.
• Increased volatility, exciting and dynamic trading opportunities even on days when the markets hardly move.
• Trade in and out at any time – this means you can take profit or limit losses by closing your position ahead of market settlement.
• A wide variety of new markets to choose from.

What binary markets do Capital Spreads offer?

Capital Spreads offers a wide range of Binary Bets for clients to trade on. We have Up/Down Bets , Range Bets , Tunnels and One Touch Binary. An explanation for each is given, below:

An “Up/Down” bet is, as the name suggests, posing the question “Will the market finish up?” or “will the market finish down?” where if the answer is “yes” then the market always settles at 100.

A range bet might ask “Will the FTSE close between 30 and 40 points up?” If the answer is “yes” and the FTSE closes within this range then the binary settles at 100 and the binary settles at 0 if the answer is No and the FTSE does no close between 30-40 points up

e.g. Will the FTSE Close between 30 and 40 points up?”

Our price is 30-35

You do not think that it will close up within this range so you think that the answer will be “No” and the make-up will be 0

You therefore sell £2 per point at 30 hoping to make a £60 profit (30 less 0 X £2). You will make this profit if the market closes anything other than up between 30 and 40 points.

If the market does indeed close in the 30-40 range then you might lose £140 (100 less 30 x £2) unless you have traded out before settlement.

A “tunnel” bet asks the following question Will the FTSE stay between +/- 45 points today? . If the FTSE stays throughout the day within the range, the bet will be settled at 100. If not, the binary settles at 0

A “One Touch” bet is posing a question such as Will the FTSE hit 40 points higher? . A certain level has to be triggered throughout the day so that the bet settles at 100.
i.e. If the FTSE rallies 40 points and touch even once the level, the answer is yes and the bet is settled at 100. If not, it is settled at 0.

FOR MORE DETAILS VISIT OUR PRODUCT INFORMATION.

What Can I Do If The Market Moves The Wrong Way?

If you place a bet and the market goes against you, don’t panic! You can trade ‘in and out’ throughout the day. This means that you can at any time close all or part of any bet that you have (subject to a minimum of £1) and therefore limit your potential losses.

In the example above “Will the FTSE Close the Day Up?” where you agreed that it would “Close Up” and therefore you bought £1 at 52 you risk losing £52. If the market drops 5 points then our new binary price might be 40-45.  If you now change your mind and think that the FTSE might close down then you could “close” your positions by selling £1 per point at 40, thereby limiting your loss to £12 (52 less 40) rather than waiting for expiry where your loss could be £52 if the binary settles at 0.

Equally the FTSE may have moved up and you may wish to take a profit ahead of expiry rather than taking the risk that the market might move back down. If the FTSE is up 5 points since you bought at 52 then our price might be 70-75 which means that you could sell out £1 at 70 for a 18 point profit of £18.

If you were confident that the market would close up then you might not want to take a reduced profit but rather wait until expiry when the bet settles at 100 and you would therefore make £48.

Binary bets therefore constantly present you with opportunities to trade market positions to expiry or to trade in or out for limited losses or guaranteed profits

Rules

- Minimum bet size is £/EUR/$/SEK/ZAR 1

- Binaries are only available between 8am and 5pm

- If Up/Down bets expire with the market unchanged, Capital Spreads rules that the market has expired UP.

- Customer support is by email only: admin@capitalspreads.com

- Binary Bets are NOT FSA regulated and you will need to read and agree to a new set of Terms and conditions before you begin our Binary Betting service.

Rules For Offer

- Clients must make at least three binary bets with the last bet being within 2 weeks of the first bet and will then qualify to claim a rebate of up to £100 of any net losses incurred in relation to these first three bets only. If net losses are less than £100 then only the lesser amount will be rebated.

- No rebate will be paid and the offer value will not apply where clients trade equal and opposite positions. This offer does not apply to binary clients who have traded in the last three months. Clients who have never funded their Capital Spreads account must deposit at least £250 in their accounts. Clients should contact admin@capitalspreads.com in order to claim the rebate once the offer conditions have been met. Capital Spreads will not rebate any amounts unless contacted by the qualifying clients.