What is binary betting?
Binary betting is a type of financial betting where the likelihood of an event happening is rated on a scale of 0 to 100. The bet settles at 100 if the event does happen and 0 if it doesn't.
Where have you heard about binary betting?
If you've dabbled in the world of financial betting, you've probably come across this method. Developed by the IG Index, it's a popular betting strategy because it's quick and easy to understand.
What you need to know about binary betting.
Because it's based on whether an event will or won't happen, binary betting is a very streamlined betting strategy. An example of an event could be 'the FTSE will end lower on the day.'
A broker will set the price of a bet based on his or her perceived likelihood of the event happening. The higher the likelihood, the higher the price. You can profit from the bet in two ways: buying it if you think the event will happen, and selling it if you think it won't.