Pros and cons of financial betting
Most people ask themselves what trading in the foreign exchange financial markets is all about. Many will answer - making transactions on buying and selling of this or that currency. However, speculative trades are actually forecasts of the future exchange rate. If we think that the rate will rise, we buy. If we think it will fall, we sell. Thus, when making a deal, we make a bet on this or that exchange rate in the near future.
Watching from the sidelines
Have you ever wondered if you can make money predictions directly without having to make trades?
Recently, the world has been gaining popularity financial betting - betting on the behavior of exchange rates. The principle of betting is similar to any other: whether it is betting on sporting events, horse racing, etc.
The main feature of financial betting is to take players outside of the market itself. If trading on - is a direct participation in the process, then financial betting is more of an observation of the process from the outside..
Big pros and small cons of betting
Let's take a look at what are the advantages and disadvantages of this financial innovation, namely financial betting.
First the pros:
Small start-up capital. Already with ten dollars it is quite possible to bet.
In financial betting. simple betting mechanism. The system is much simpler than trading on the market. The player makes an assumption (for example, that in 24 hours the dollar rate against the euro will rise by more than 10 points), in response to this assumption the system gives him the odds. The bet is made, the only thing left to do is to wait 24 hours and get the winnings if the exchange rate has really risen.
Financial control. If the so-called "leverage"which is the cause of most trader losses, financial betting is done entirely with your own money.
No time constraints. When a trader has a trade open on e, he cannot "wait out" long "bad" periods when the market goes against him, as there is simply not enough money in his account to cover the loss, and the trade will be closed automatically. Financial betting does not require a large account to open long positions.
No "trader's fever". After opening a deal on the psyche is very hard hit by the constant fluctuation of the exchange rate, the trader follows it with a faltering heart and may well be nervous to make any mistake. In the case of financial betting bets are made in advance, so the player just has to watch the rate, and there is no technical possibility to do something stupid. However, some traders, on the contrary, consider it a disadvantage, because financial betting does not allow you to change parameters "on the fly", limiting maneuverability.
The main disadvantage of financial betting one - are low odds for easily predictable events. Rate movements predicted by fundamental analytics will not bring big winnings.
As we can see, the new financial instrument is at least interesting. Therefore, any trader should try to participate in financial betting, at least for capital diversification.