One of the most unique options of betting that you can use in financial spread betting is the binary bet. This is a type of bet that deals with predicting whether or not something dealing with a financial instrument is going to work or not.
With binary betting your spread will work in that you will simply determine whether something will go up or down within the course of the day. You will need to only determine where the value of something will go without having to add any limits or orders to your bet.
If your prediction is correct then the binary price that is involved will be 100 and you will take 100 and subtract it by the price you opened your spread at and then multiply it by the money you bet for each point. If it is wrong the price will be 0 and you will lose an amount that is the opening price multiplied by your individual point bet. This means that the risks that are involved will be low because you will know how much money you will earn or lose before you get into a bet.
Like with other options in financial spread betting you will use a certain amount of money for each point that an investment changes in. This value can be as low as 50p per point in many cases.
Here is an example of how this works. If you predict that the UK 100 market will move up in one day and the bid and offer range is 51 to 55 then you can earn a good amount of money if your prediction is correct. If the market moves up then the binary price will be 100. You will take 100 and subtract it by 55 to 45. You will then take 45 and multiply it by money per point in your bet. Therefore if you had a bet of one pound for each point you would get a profit of 45 pounds.
If the bet does not work and the binary price is 0 then you would end up losing 55 pounds.
A variety of different markets can be handled in financial spread betting through the use of binary bets. The UK 100 is the most popular of these markets but the S&P 500 and US Crude Oil markets can be handled too.
Binary bets are unique types of bets to use in the field of financial spread betting. You can use these bets as low risk options that have controlled losses in them.