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Cash Index
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:
- The cost of borrowing for the financing of the set of shares of the underlying index
- 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.
Financial Betting
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 Index
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.
Product
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.
UK 100
This is the Financial Times Stock Exchange. It is an index of the 100 largest companies listed on the London Stock Exchange.
US 30
This is an index of the 30 largest companies listed on the New York Stock Exchange
Germany 30 Index
This is an index of 30 selected German blue chip stocks listed on the Frankfurt Stock Exchange.
US 500
This is an index of 500 selected US blue chip stocks listed on the New York Stock Exchange.
France 40
This is an index of 40 most significant blue chip stocks listed on the Paris stock exchange.
European 50
This is an index of the 50 leading Eurozone blue chip stocks. Countries included are: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
Greece 20
This is an index of the largest and most liquid stocks traded on the Athens stock exchange.
Austria 20
This is an index of the 20 most heavily traded stocks on the Vienna stock exchange.
Spain 35
This is an index of the 35 most liquid stocks traded on the Spanish continuous market listed on the Madrid stock exchange.
HK Index
The HK Index is an index of selected stocks from the Stock Exchange of Hong Kong (covering Commerce & Industry, Finance, Utilities and Property Sectors).
India 30 Index
The India 30 Index is an index of selected stocks from the Bombay Stock Exchange.
SPOT £/$
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.
SPOT €/$
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 12 countries use the euro as their official currency: Germany, Belgium, Luxembourg, Spain, France, Ireland, Italy, Netherlands, Austria, Portugal, Finland and Greece.
SPOT $/¥
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.
SPOT $/CHF
The Swiss Franc is the official currency of Switzerland. The conventional market quotation is the number of Swiss Francs per US dollar. It is an independent, free-floating currency.
SPOT €/£
The Euro/Sterling rate is the rate at which one currency is exchanged for another. The conventional market quote is the number of British Pounds per Euro.
SPOT €/¥
The Euro/Yen rate is the rate at which one currency is exchanged for another. The conventional market quote is the number of Japanese Yen per Euro.
SPOT A$/$
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.
BRENT CRUDE OIL
IPE Brent Crude oil contract as traded on the Intercontinental Exchange. Current pipeline export quality Brent blend of crude oil as supplied at Sullom Voe.
NYMEX CRUDE OIL
Light, Sweet Crude oil as traded on the Nymex (New York Mercantile Exchange) Exchange.
Gold
CME Gold 100 ounce contract as traded on the
Chicago Mercantile Exchange.
Silver
CME Silver 5000 ounce contract as traded on the Chicago Mercantile Exchange.
Moving Odds/Static Level Betting
You can speculate between three static market levels. These levels do not move (except in times of exceptional market volatility)
but the odds associated with them fluctuate continuously.
High & Low Lines
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.
Mid Line (Starting Level)
In moving odds/static level betting, the mid line is the starting level of that market. This remains static for the entirity 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.
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. High & Low Line
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:
- High Level – 5/1 to bet above this level and 1/20 to bet below this level
- Low Level – 5/1 to bet below this level and 1/20 to bet above this level
Mid Line (Current Level)
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. Mid Line Market Spread
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) will remain constant at all times.
Void
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
- If the market closes early for any reason.
- If a settlement price is unavailable for any reason.
- If a bet has been accepted in error, for an event that has already
taken place, or where betting has been suspended.
- 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.
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