To figure out whether Binomo is a financial betting platform or an online broker, one must understand the fundamentals of financial betting and stock trading. The purpose of this article is to briefly touch upon these topics and then discuss the pros & cons of signing up at Binomo.com.
Financial Betting
Financial betting can be defined as placing bets on price movements of financial instruments in the future against the bookie’s odds, relative to the current price of the instruments. The outcome of a financial bet is either a loss or a win.
In case of financial betting, the result of the bet is binary; it is either a loss or a win. The payout, therefore, is fixed. In case of financial spread betting, your win or loss depends on the price movements of the underlying financial instruments.
Financial betting sites offer several varieties of financial betting options, each having different payouts and risk levels. The higher the risk you take, the greater your rewards are going to be (if you win).
So here are some types of financial betting:
- Fixed Odds– Since the risks are limited with fixed odds betting, it is ideal for beginners who are still trying to grasp the fundamentals. The bookie reveals the odds and the potential results of the bet before you place your bet. So you know exactly what you will win or lose.
- Binary Options– These are complicated, risky, but highly rewarding. You have to place a bet on whether the price of an underlying asset will increase or decrease (Up / Down Call & Put options).
- Financial Spread Betting– Spread betting is immensely popular because of its high rewards and high risks. This product requires you to bet on whether the price of a chosen financial instrument will go up or down. You should also mention by how much it will go up or down.
In case of spread betting, the potential results of your bet and the exact amount you will win or lose are not revealed to you because your win or loss depends entirely on the price movements of the instrument.
Financial Betting Benefits
Financial betting is popular for a number of reasons:
- Although it appears complicated at the beginning, you can easily get the hang of it.
- Although the associated risk is high, the winning potential is huge.
- Since financial spread betting moves at a fast pace, it is extremely exciting.
- You can improve your chances of winning by studying market trends and staying updated on the latest financial events.
- Financial spread betting is popular among serious investors as well as new traders.
- Financial spread betting profits are absolutely tax free in most countries. This is because most countries consider it to be gambling, not investing.
Financial Betting vs. Trading – The Differences and Similarities
Financial spread betting is a leveraged product, which means that you can enter a trade at just a fraction of its total cost. When you use leverage while trading stocks, you are using borrowed money to purchase more stock.
Leveraged products are very attractive to traders on a low capital. But you must remember that leverage is a dangerous concept. While it can boost your profits, it can also magnify your losses. So leverage has to be used with care.
Financial spread betting enables you to profit from price movements without actually owning or holding the underlying financial instrument. When you are trading stocks, you are physically buying and holding company shares.
You don’t have to worry about liquidity while spread betting. You can close a trade position just as easily as you opened it. On the other hand, liquidity can be huge problem while you are trading stocks, making it difficult for you to sell your stock.
Financial spread betting profits are tax free in many countries, unless you are doing it to earn an income. However, traders and investors in stocks, commodities, currencies, and other financial instruments have to pay taxes on their profits.
When you are a trader or investor doing business with a broker, you have to pay transaction fees. Such fees do not exist in financial betting because the broker profits from the spread.
You can hold company shares as long as you wish, but spread bets come with expiry dates and need to be settled before they expire.
Getting Started with Financial Betting at Binomo
Binomo is an award-winning financial spread betting platform that offers quotes from leading agencies. Since it is an A Category member of the Financial Commission, it becomes one of the most reliable online platforms for financial betting.
Home to a community of 900,538 clients, Binomo is available in 133 countries. The online financial betting site allows you to enjoy maximum earnings of 90 percent on a trade.
How can you get started?
We suggest getting started on a demo account. This gives you a chance to test Binomo’s services and features for free before actually spending money on its financial betting products.
Once registered at Binomo, you can open multiple trade positions and manage them simultaneously. You can also trade at weekends and boost your profits.
Here are more benefits of financial spread betting at Binomo.com:
- Instant online support
- Free training for beginners
- Place spread bets on the move via dedicated financial betting apps for iOS and Android
- Boost your profits by taking part in daily tournaments
