Financial betting sites represent one of the most interesting innovations in the online financial betting market to date. In summary, financial betting sites let people wager on future price movements of financial instruments. The practice is very similar to options trading except the bettors never take control of the instruments.
The simplest way to explain financial betting online is with an example. Let’s say you think a certain stock is going to go up in price today. Instead of buying shares of that stock, you can simply place a wager with the betting site that the price will go up. If the price goes up within the time period indicated on the bet, you win the bet and receive a payout.
There are many different types of wagers that can be placed at financial betting sites. Some wagers resemble straight-up bets that you might find at traditional betting sites. In these wagers, you win a flat amount if the price moves in the direction you predict. Other types of wagers are more similar to options because the amount of money you win or lose depends on how far the price moves in either direction.
The advantage to flat betting is that your risk and return are fixed and you know in advance how much you stand to win or lose. With the other type of wager, you take on more risk because your potential losses are unknown. But at the same time, there is no cap on your potential earnings.
Finding Top Rated Financial Betting Sites
There are quite a few financial betting sites out there to choose from. However, a couple of websites in particular have come to dominate the market. The top online financial betting sites are the most popular because they offer a wide variety of bets and they offer timely payments.
There are two main types of financial betting sites on the internet. First, there are traditional bookie-style financial betting sites. These are sites in which the site acts in the same fashion as a sportsbook. The site creates the bets and then you bet against the book just like you would at a normal sportsbook.
The other type of financial betting site is set up as an exchange. At these betting sites, you do not wager against the site itself. Instead, you buy and sell positions with other customers of the site. This type of financial betting site operates in a similar fashion to the stock market.
You’ll have the most success at both types of financial betting sites if you do your homework before you make real money wagers. Financial news, common sense and a knowledge of how the markets operate will all help you find success at online financial betting sites.
If you live in the UK, you gain the added benefit of tax-free winnings at financial betting sites. Financial betting sites are classified as gambling sites, so any money you make by online financial betting is considered gambling income. This is a good thing because gambling winnings are not taxed in the UK.
Some financial experts actually use online financial betting to avoid paying taxes. These people might have expansive knowledge based on the stock market, but they do a lot of their business at financial betting sites. That extra tax savings is a huge benefit for those people.