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Binary Options: Fixed Odds Financial Bets by Hamish Raw

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Introduction

Overview

As betting markets become more and more sophisticated (epitomised by the advent of specialist sports hedge funds) the crossover between sports betting and financial trading will intensify. Already futures trading by way of spreadbetting has become established in the sports betting market, while in turn fixed odds bets, by way of binary options, are being increasingly used for speculating in the financial and commodity markets.

Binary options (aka financial fixed odds bets, aka binary bets) have a number of characteristics which will enable them to become the most heavily used and popular derivatives instrument. They provide:

  1. easy access for the trader via the internet;
  2. a limited risk environment for all participants; ...

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