Financial Fixed Odds offers numerous trading benefits over traditional investing strategies and is well suited for those who are looking to take their initial steps in the world of financial trading. This often unappreciated trading method provides both an easy and clear investing method that almost anyone can get involved in due to the low barriers to entry. The popularity of fixed odds trading is increasingly quickly as traders, new and existing, look for more stable ways in which to profit from financial market moves. As you only ever purchase a set priced contract, your risk can never be more than the price you pay at the outset. This makes the this way of trading ideally suited to those who are looking for a way in which to limit their risks when speculating on the global markets.
Learning the Principles Of Fixed Odds
A financial fixed odds trade is basically a contract that promises to pay a fixed yield at expiry. The profit on a fixed odds trade is paid out at the expiration time if the conditions of the trade are still in place. The binary character of fixed odds trades offers a simple trading method which is easier for traders of all levels to comprehend. You either obtain the profit or lose the deposited amount on the contract at expiry.
The precise gain you can get for a successful expiration is set out by the fixed odds broker before you place your contract. What you may lose is fixed to the value that you pay for the trade contract.
Trade A Number Of Of Assets
The broker account that you need in order to trade with fixed odds will allow you access to a wide range of financial assets around the globe. Shares, market indices and most of the major currency pairs are on offer to speculate on with fixed odds trades. You can trade any of the trade types on the range of markets that are on offer.
Profit From A Variety Of Market Outcomes
There are a variety of market results or 'trade types' which are accessible to the financial fixed odds trader. There are three main types of trades that may be placed: Higher/Lower, In/ Out and Up/ Down.
All of the trades offered are configurable. This means that you can create a trade outcome to suite your prior market analysis. The key benefit here is in allowing you another way of controlling trading risk on your account.
High Returns
High profits are on offer from fixed odds contracts with many paying out in excess of 100%. The broker will offer a return on each position that is taken which will reflect the level of risk and probability of the contract.
Most of the available trade types work on a 'time and duration' basis. You can however earn high returns from both long and short term trading strategies. Changing the level that is set on the trade outcome in relation to the current market price will also change the return that is offered.
The Risks With Fixed Odds
Like all forms of financial trading it is worth remembering that you are always at the mercy of the markets. However these risks are lowered and known when you trade the markets with fixed odds. Therefore no matter what happens to the market while you position is open, you can never lose more than this amount. The limited risk offers traders who are new to the market some comfort in that they won't have such risks to their capital.
Investing with financial fixed odds gives a number of opportunities for financial traders. Not only will it enable you to trade numerous financial markets, it is unique in enabling you to recognize both your potential return and loss prior to trading. It offers a good restricted risk way in which you can transact the markets. It's also possible to start to trade with just a modest deposit. This allows potential traders of more limited means the chance to attempt to make money from financial markets.