Financial betting.

The diversity of stock market speculation is simply astounding in the number of options available. Besides being categorized by asset type (currencies, stocks, metals, commodities), there's also a division by transaction method. Sometimes, these methods resemble betting at a casino or bookmaker.

Financial betting is one such type of transaction. Its essence lies in the trader's attempt to predict the price of an asset within a certain period of time.

For example, you bet that the price of gold will be higher in an hour than it is now. If your prediction is correct, you receive a reward; if it's wrong, you lose most of your bet.

Financial betting uses a rather interesting approach to calculating the reward amount. The company organizing the process independently calculates the forecast probability and then proposes a reward based on this, and the trader then decides whether to accept the proposed option.

For example, if during an uptrend you predict that the euro/dollar exchange rate will rise in an hour, you will receive only 50% of the reward, while with the opposite forecast you can receive 150%.

Binary options trading, a type of financial betting, offers a significantly simpler approach.

Here, the reward amount varies only depending on the forecast duration: the closer the time until completion, the smaller the reward.

For example, for a bet on the euro/dollar exchange rate that will trigger in an hour, you receive 85% of the profit, while if you bet for one minute, you receive only 70%.

This topic is covered in more detail in the article " Binary Options Trading ."