Casino City's iGaming Pocket Directory - 2017 Edition

Sponsored by 36 Financials Casino City’s iGaming Pocket Directory FINANCIALS INDUSTRY OVERVIEW position on an asset. Will a foreign currency be higher or lower than a certain price when the market closes? Will an index close above or below a certain point? Will the price of oil rise or fall above or below a certain point? Binary options are similar to a futures contract, where the trader predicts where the price will be in a certain timeframe, known as the “expiration.” These transactions require a certain amount of knowledge. For instance, a trader interested in betting on the price of oil will want to know when the next OPEC meeting is scheduled; if it is expected to increase or decrease production; and whether demand for oil is rising, falling or holding steady. They also require a feel for the marketplace. Will the price go up if OPEC does what is expected? Or will the price only go up if OPEC goes in a different direction? And after factoring in all of the available variables, will the price close above a certain mark, or below a certain mark? Traders can even profit from predicting whether a price will break out of its range or touch a certain price in a certain timeframe. Because these are trades against a position, and no assets are bought and sold, the only limit to available markets is the imagination — or what your provider is willing to offer. FOREX Forex hearkens back to the days of day trading, except with foreign currency. The basic goal is to buy currency before it appreciates, and to use that currency to buy more of another currency. Forex traders execute a series of short-term trades on the Foreign Exchange Market in an effort to turn a quick profit. Traders often jump in and out of the market throughout the day and continually monitor their positions. Because foreign exchange trading happens at multiple financial hubs throughout the world, forex trading is nearly a 24-hour activity five days a week. SPREAD BETTING A typical spread bet predicts whether a market will move up or down. Let’s say a trader thinks a financial index is going to go down in value. A trader could sell for $5 per point. That is, for each point the index drops, the trader would earn $5. If the index dropped 100 points, the trader would earn $500. But if the index went up 100 points, then the trader would lose $500. Once again, no assets are being purchased. Traders are simply taking a position against the market. In a sense, financial trading — whether it be options, spread betting or forex — is the new day trading, and it’s growing quickly in popularity.