Before the most anticipated event — the FED’s decision on monetary policy — the Russians offered to make a bet on the U.S. dollar at bookmakers. Are there any risks, what is the difference from binary options?
The results of the FED meeting is one of the most anticipated events among the news of the Central Banks this week. And while investors breathlessly watch every word of Janet Yellen, in Russia bookmakers offer to bet on the outcome of economic events.
The bookmaker are telling you how to bet on the dollar and other financial instruments for several years. There are bets on the outcome of chess tournaments or hockey, horse racing and other sporting events in their arsenal. Some companies offer the chance to win money by guessing the movement of currency pairs or indices. Isn’t this very similar to binary options trading?
How to bet on the dollar
The practice of betting on certain financial instruments is widespread in many countries of the world. For example, the Australian betting company Sportsbet offers bets not only on changes in securities prices or currency pair rates, but also on the results of meetings of Central Banks, the level of interest rates, determined by their results.
In Russia, everything is easier with bookmakers: knowing that the population is difficult to attract with what it almost does not understand, the bookmakers only offer a narrow range of financial instruments. The player is given the choice between certain currency pairs, and he must guess how to behave in the course in a fixed time (5, 20, 60 minutes — depends on the conditions of the bookmaker). For example, how to place a bet on the dollar:
- at 15.00, the player assumes that at 15.15 Euro will rise against the dollar above the fixed level at 15.00 on 1,2224;
- if the rate rose, the bet is won. If the stock remained at the same level, it all depends on the rules of the bookmaker: some count this as a defeat;
- amount of income of the player depends on the coefficient determined by the bookmaker before making bets. Logically, if the probability of an event will be close to 99%, then the coefficient will tend to 1%.
Occasionally the Russians are offered to bet on changes in stock prices or stock indices.
Bookmakers or binary options?
How to bet on the dollar or other currencies, will tell in a large betting company Marathon, Fonbet, 1xbet. For example, since 1998 “Marathon” offers to bet on 8 currency pairs on its website, however the usual EUR/USD or USD/Russian ruble is not here. To place a bet, the player chooses the amount he is willing to invest, that is determined by the ratio charged by the bookie (“a fall” or “to improve”), selects time intervals (5 or 20 minutes).
Other bookmakers can offer the help of the analyst-forecaster (which is very rare). One of the betting companies offers to bet on the numbers that it generated every 24 hours.
Note, all of these proposals resemble a lottery: the player makes a bet at random, whereas binary options are based on founded analysis of prices of past periods, a reasonable forecast and informed decision.
Partly financial bets in bookmakers is a simplified version of binary options trading. However, the bookmakers have an indirect relation to Forex, as they only broadcast quotes of foreign exchange brokers. Besides their activities in Russia does not fall under the legislation on the Forex market.
“The client and the bookmaker just looking at the monitor screen on which there are different numbers (currency) and bet on what numbers will appear in 15 minutes” — so common words to describe a bet with bookmakers experts.
How to bet on the dollar? With a bookmaker – only relying on luck.
5 main differences between binary options trading from bookmakers:
- bookmakers attract players who like to take risks. The game attracts more of a passion than a desire to win. Binary options trading is a deliberate strategy, where there is not a simple task, how to place a bet on the dollar or another financial instrument, and to understand the causes of the direction of price trend and make money;
- bookmakers offer a narrow set of tools and strategies. In contrast, in binary options there are options with expiration time from 60 seconds to 1 month, as well as a series of functions (the possibility of early closing of the contract, renewal option). Bet with a bookmaker requires the knowledge, then how a trader working with binary options, knows not only how to bet on the dollar (gold, stock indices), but also how to use technical analysis to increase their income;
- when making a bet at the bookmaker, the players cannot manage their betting when betting on a binary trading platform, trader is watching it and is able to make some adjustments in the open position;
- in rare cases, the bookmaker may allow you to take the help of analysts. Binary options trading involves the online chat rooms and social trading – a trader can consult with other bidders, can copy successful transaction or, on the contrary to “mirror” unprofitable;
- bookmaker is a greater risk. How to bet on the dollar? To guess but will the bookmaker expose the actual numbers of quotations — is a question. Binary options trading is the direct work on currency, stock and commodity markets in real time.
To sum up. Summarizing, we say that bets in bookmakers — is fun, binary options trading is a profession. Bets at the bookies are intuitive, bets on stock markets — deliberately and consciously.
Tell me, where the probability to win is more? In a lottery, where the outcome is unpredictable? Or in the stock markets, where there is a large probability of a correct prediction with a deep understanding of the market? We think you will make the right choice!
More about trading strategies, features of trading platforms, brokers, offering the best conditions for trading binary options you will find on our site!