The Key Benefits Of Fixed Odds Trading

In my introduction I mentioned some of the benefits of trading financial markets via fixed odds.  There are many more and here I list some of the key areas that you can gain an advantage by trading financial assets through fixed odds. I think the list is pretty exhaustive and shows the reasons why most traders will benefit from incorporating this approach in their trading strategy.

An Simple Way To Trade

Fixed odds bets are easy to place and simple to understand due to their binary, profit of loss nature. With low minimum account opening values and the ability to start placing trades from just £10, fixed odds brings the potential to profit from financial markets to a wide audience.

High Returns

You make your return from  a fixed odds contract even if the market finishes only one tick above your profit condition on the trade. For example if you trade that the market will end higher than your level, it does not matter if it finishes 1 or 100 ticks higher at the expiry time. You still earn the agreed profit set out when placing the trade.

Known Limited Risk

The risk you place is limited to your stake. You know both your potential winnings and your liability (risk) prior to placing your trade a trade in your account. This allows you to determine whether you think the trade is worth taking. There is no account draw down and you cannot stake with money that has not been credited to your account. 

Exit Positions Early

You can sell your bet back to the bookmaker before expiry. This is useful both if you want to bank profits early, and if you want to sell out of a trade that is going against you. One of the benefits of fixed odds is that you can sell back any option position that you have to financial fixed odds bookmaker prior to expiry and receive the current market value of the contract credited back to your account immediately.

Trade A Wide Range Of Assets From One Account

Fixed odds offer convenience with the ability to trade an ever growing number of markets from just one account. At present you can trade Stock Indices, Currencies and an ever increasing number of individual shares and commodities.

Profit From A Variety Of Market Outcomes

With fixed odds you are not limited to just higher or lower option types trades. You select not only the markets you trade but also the way in which you trade. There  are a range of fixed odds trades that you can place in your account to profit from a variety of market outcomes. This gives greater scope for making profits from trading whatever the prevailing market conditions are like.

Tax Free Returns