Overview of Financial 토토사이트 Betting on Forex, Indices, Commodities
Financial 토토사이트 betting is similar to betting on sports – except that you bet on a market outcome, instead of a match.
As with sports bets, with financial bets there is a:
• stake or wager – how much you are willing to bet
• payout – the amount you will receive if your bet wins
• return or odds – the ratio between the payout and the stake
• outcome – the “prediction” you are making
So, for example, you could make at bet as follows:
• wager – $10
• payout – $20
• return – 100%
• outcome – the FTSE (London Stock Exchange Index) to rise between 13:00 and 14:00 today
Pretty easy, huh?
So why bet on the financial markets?
• Because it is easy
• Because it less risky than trading (you can bet with as little as $1)
• Because it exciting
• Because you can make money
That last point is important. You *can* make money. But you *can* also lose money, of course.
In order to be profitable over the long-term, you need to find low-cost, mis-priced bets. What do we mean by that?
Financial betting services are businesses. And like any business, they have expenses to cover and investors to please, and so they try to make money. And they make money by effectively charging “fees” on their bets.
Except that they actually do not charge fees (such as $5 a bet) or commissions (such as 2% of the winnings), instead they use a spread or overround (two different ways of looking at the same concept, so we’ll just refer to it as a spread). This spread means that if the fair value of a bet is $x, they sell it at a price of $x + y, where y is their spread. On average and over time, their betting profits should be equal to the spread.
This is why it is critical to only place bets on those bets that have low spreads – eg “good prices”. If the spread is low enough, then you can be profitable in the long run if you make good predictions. If the spread is quite high, then you basically have no chance, no matter how good your predictions.