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Financial Odds Glossary
IPE Brent Crude oil contract as traded on the Intercontinental Exchange.
The value of an index (e.g. UK 100) is calculated by weighting each company's share price according to their size. This is known as the Cash Index and is what you will see published in newspapers or on the television.
Fair Value (also see Futures Index)
The fair value of the Futures index is determined by adjusting the Cash Index by the "net cost of carry". Cost of carry reflects:
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The cost of borrowing for the financing of the set of shares of the underlying index
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The income generated from holding the underlying set of stocks
The fair value of an index futures contract for a particular investor is therefore the point at which that investor would gain no advantage in either buying the underlying basket of stocks in the cash market replicating the index or simply buying the corresponding index futures contract.
With fixed-odds financial betting, the return of the bet is fixed at the moment of bet approval. No matter how much the odds fluctuate after the bet has been placed, the bet pays out a fixed amount if it wins or returns nothing if it loses.
Futures are priced on a cost of carry basis. Usually the cost of buying the shares is greater than the dividend yield so the futures price will trade at a price higher than the underlying (cash) index. This higher price reflects the cost incurred by the seller of futures over the life of the contract. However, it is possible the futures price may trade lower than the cash due to dividends payable between the relevant current date and the expiration of the relevant quarterly future.
This is an index of 30 selected German blue chip stocks listed on the Frankfurt Stock Exchange.
CBOT Gold 100 ounce contract as traded on the Chicago Board of Trade Exchange.
In static odds/moving level betting, these levels are based on the odds associated with each line and the time left to the expiry of your chosen betting period. The odds will always be as follows:
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High Level - 5/1 to bet above this level and 1/20 to bet below this level
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Low Level - 5/1 to bet below this level and 1/20 to bet above this level
In moving odds/static level betting, these levels are based on a reasonable assessment of market volatility for your chosen time period. They remain fixed for the duration of your chosen betting period.
The HK Index is an index of selected stocks from the Stock Exchange of Hong Kong (covering Commerce & Industry, Finance, Utilities and Property Sectors).
The India 30 Index is an index of selected stocks from the Bombay Stock Exchange.
In static odds/moving level betting, the mid line is the derived current level, which shows the derived current price of the product you are looking at. This is a real time price with no delays. The odds for betting above or below this derived level will always be 5/6.
Two further betting lines are offered within the static odds/moving level bet type. These lines are based around the current product level at that time. Two levels are offered, one above and one below the current level. These two levels will move with market fluctuations, however the betting odds of evens (1/1) or 10/11 (dependent on the type of underlying market) will remain constant at all times.
In moving odds/static level betting, the mid line is the starting level of that market. This remains static for the entirety of the betting period. The starting level is the level of the market at the beginning of your chosen betting period. This is dictated by the closing price of the previous betting period.
Moving Odds/Static Level Betting
You can speculate between three static market levels. These levels do not move but the odds associated with them fluctuate continuously.
Light, Sweet Crude oil as traded on the Nymex (New York Mercantile Exchange) Exchange.
A product represents an item that a customer can bet on e.g. the UK 100 or the US 30. Each product has a limited time span and all Financial Fixed Odds products have an expiration date/time.
CBOT Silver 5000 ounce contract as traded on the Chicago Board of Trade Exchange.
The Australian dollar is the official currency of the Commonwealth of Australia. The conventional market quotation is the number of US dollars per Australian dollar. It is an independent, free-floating currency.
The Euro/Sterling rate is the rate at which one currency is exchanged for another. The conventional market quote is the number of British Pounds per Euro.
The Euro/Yen rate is the rate at which one currency is exchanged for another. The conventional market quote is the number of Japanese Yen per Euro.
The Euro is the official currency of the European Economic & Monetary Union. The conventional market quote is the number of US dollars (USD) per Euro. The following 13 countries use the Euro as their official currency: Germany, Belgium, Luxembourg, Slovenia, Spain, France, Ireland, Italy, Netherlands, Austria, Portugal, Finland and Greece.
The British Pound Sterling is the official currency of the United Kingdom. The conventional market quotation is the number of US dollars per British Pound. It is an independent, free-floating currency.
The Japanese yen is the official currency of Japan. The conventional market quote is the number of yen per US dollar. It is an independent, free floating currency.
Static Odds/Moving Level Betting
You can speculate between three moving market levels. These levels move with the market, but the odds associated with these levels remain stationary - they are always the same.
This is the Financial Times Stock Exchange. The UK 100 is an index of the 100 largest companies listed on the London Stock Exchange.
This is also known as the Dow Jones or the DJIA. The US 30 is an index of the 30 largest companies listed on the New York Stock Exchange.
This is an index of 500 selected US blue chip stocks listed on the New York Stock Exchange.
When a bet is declared invalid. In all circumstances when a bet is voided the stake that was used to place your bet shall be returned to you. This will be necessary under the following circumstances
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If the market closes early for any reason.
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If a settlement price is unavailable for any reason.
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If a bet has been accepted in error, for an event that has already taken place, or where betting has been suspended.
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If there is a manifest error in any of the parameters used to calculate either the positioning of the betting line, or odds, or both.
Introduction | How to place bets | Financials information | FAQs | Terminology | Game Rules Index