Fixed Odds - A Simple And Profitable Way To Trade

Fixed Odds trading is an exciting and growing method of profiting from financial markets. It provides a simple platform that allows you to profit from price movements on Stock Indices, the Foreign Exchange markets, commodities and shares. The whole concept behind the trading is easy to understand and it has been designed to be straightforward to execute. In short it provides a great introduction for those new to financial trading who will enjoy the fixed risk of this form of binary trading.

How Financial Fixed Odds Work

With Fixed Odds you don’t ever actually own the asset as you would with share trading of mutual fund investment. Instead you buy a contract with a set expiry time. The contract is made up of a number of conditions that have to be intact for the fixed odds broker to pay out at expiry. This approach is very similar to binary options.

As with binary optoins the payout you receive for a successful expiry is known at the outset. The asset that you trade can make many moves prior to its expiry, but you will still earn the agreed payout provided the conditions of the trade are intact when it closes.

For example you might think that the Nasdaq index is due a rise over the coming week. You would then be able to build a custom fixed odds trade to profit from this event. To put it simply, if you are correct and the market has risen above your entry price at its time of expiry then you win the agreed profit. It really is that simple. So what happens if the market doesn't rise but it falls?

High Potential Payouts

Each fixed odds trade will payout a return that it pre-agreed with the broker prior to you actually placing the trade. This return will vary as a result of the trade conditions that are set. Both the level set on the trade duration that the expiry contract is run for will influence the return offered. You can however expect to receive high returns ranging from anything up to several 100% return for your trades.

Of course the higher the return then the more likely that the contract will expire worthless as more risks will be involved. however you can expect to earn anywhere between 20-100% for moderate risk trades. Some of these will payout in just a matter of minutes.

Limited Known Risks

Well if this was to happen then you would lose the money that you used to buy the contract. The simple binary nature of this style of trading is that you either win or lose at the outcome. However the unique feature of fixed odds is that you can only ever lose this amount no matter how far the market had fallen. Therefore you risks are limited and importantly, are known up front before you even buy the contract. In addition you also know how much you stand to profit on a successful outcome.

In addition you can only trade with money that has been deposited to your binary fixed odds account, so  there is no chance of running up huge debts with your broker. Therefore don’t need to have huge margins to cover your account if things go wrong.

You can start trading fixed odds bets with small amounts - most trades can be placed with just a couple of pounds. This allows you to capture the significant market moves that would require big deposits with other trading methods.

A Range Of Markets To Trade

 You can trade a range of markets from just one account which makes fixed odds a great medium for traders. There are many markets on offer for trading. These include the major international stock indices such as the Dow Jones, Nasdaq, FTSE and CAC, as well as all of the major Forex pairs. 

There are also selected commodities such as Gold and a growing range of individual global shares that you can also trade from within the one account.

Trading with financial fixed odds offers a simple lower risk way of trading financial assets by speculating on their price movements. If is highly flexible and allows for customization of each and every trade you take. This allows you to tailor your trades around your own personal analysis of the markets.