Binary betting

Binary betting is a form of fixed odds betting that allows you to take a view on whether an event is going to happen or not. There are only two outcomes with a binary bet as an event either occurs (binary price settles at 100) or it does not (settles at 0).

For example you could bet on whether the UK 100 will finish up or down. In this case you would be taking a view on whether the UK 100 would close higher, or lower, than yesterday's closing price.

Just like a spread bet, you buy or sell for a certain amount per point depending on your view. You can also close a position before it expires to cut your losses or realise your profit.

The key difference to spread betting is that you know your maximum upside and downside at the outset. Binary betting also has similar characteristics to Digital Options and Binary Options.

For example:

If you were to bet on the Daily UK 100 Up market (i.e. you bet that the UK 100 will be up at the UK 100 close of day) and the price quoted was 35-39, if you bought £1 you would know that:

Your maximum profit would be (100-39) x £1 = £61

Your maximum loss would be 39 x £1 = £39 (your initial stake)

Binaries are fast moving even in slow or quiet periods. The Binary price is amplified by small movements in the underlying market.

Binary betting offers high volatility with controlled risk. It is popular with traders who like to take short term positions by betting on hourly or intraday markets with a strictly limited risk known at the outset of each trade. With Finspreads, you can trade a number of different binary markets, on live streaming prices, from 50p per point.

Markets offered:

Please click here for information on Responsible gambling.

Please note that Binary Betting activity is not regulated by the Financial Services Authority. The normal protections afforded by the regulatory framework do not therefore apply. In respect of Fixed Odds Bets and Binary Bets, City Index Limited is licensed and regulated by the Gambling Commission.