Monday, March 17, 2008 offers fixed odds financial bets

What Company Is Offering: offers fixed odds financial bets; i.e. financial bets that pay a fixed amount (or nothing) on expiry. In other words, when you buy a fixed-odds bet from, you are entitled to receive a payout, which is a fixed multiple of the amount you have staked.

How It Works;

With the dealing system a client expresses a view and makes a prediction. If the prediction comes true, the client will profit by a predetermined amount. Before any bet is placed, the client knows the entire possible downside as well as the exact possible profit.
However, with most bets, you are also able to sell your bet before the final settlement date to mitigate your losses or take your profits out early. This means that your risk level is clearly defined at all times.[Go to top] uses a variety of methods to compute bet prices. Some bets are priced using complex mathematical algorithms, based on option pricing technology whilst others are priced using simpler methods. Our advanced pricing models take into account market implied volatility, the current market quote of the underlying market, expiry date, present market conditions and other contributing factors. Furthermore, prices are weighted according to demand; bets currently in high demand will be priced at a premium to bets in low demand.

A small sales commission is built into the price of all bets. This commission is not constant and depends on the market conditions. To find out the exact commission amount charged on a bet, log into your account and select "Advanced Mode" (situated under the Home menu). Then price a bet as per normal, and click on the link "Further Info." to see the exact amount of commission charged on that specific bet. When you buy a bet, the amount deducted from your account is simply the price of the bet; there are no additional fees?

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