Are We Revisiting the Past?

Last week the 20 year anniversary of the 1987Betonmarkets is operated by the Regent Mark-ets
crash passed with a significantly negative close for allGroup of companies. Regent Markets is affiliated to
major stock markets.the Regent Pacific Group, a Hong Kong-listed
A sell off, but it was some way off being a repeatinvestment group. Regent Markets has offices in
of that day 20 years ago that wiped off 12.2% ofthree countries, and holds bookmakers licenses in the
the value of British shares in one trading session. It isIsle of Man, the UK, and Malta.
interesting to note that neither the 1987 or 1929Fixed-odds financial betting offers particular
crashes led to a recession and the Dow actuallyadvantages over other forms of financial betting and
finished up for the year after the '87 crash. Indeedinvestments, such as limited risk, potentially high
as of the time of writing the Dow Jones Industrialpayouts, and unique market opportunities. Particularly
Average is up 700% from its 87 crash low.popular is Betonmarket's Range Bet, which offers the
The Nasdaq was again the strongest marketopportunity to profit from a period of quiet market
relatively (although that wasn't saying much afteraction.
Friday's rout). Google yet again beat analyst'sBetonmarkets also offers the following bet types:
estimates with increased revenue coming on steamthe Bull/Bear bet, the One Touch bet, the No Touch
from acquisitions such as You Tube. They nowbet, the Range and Expiry Range bets, the Double
handle 57% of all web searches which is twice asOne Touch and Double No-Touch bets, and a variety
much as Yahoo, their closest competitor.of intraday bets. Contracts are available on foreign
Despite the strength in the new economy, the bearsexchange rates, major stock indices, and stocks.
have plenty of reasons to fuel the selling we saw onFixed-odds bets are also known as binary options,
Friday. Oil hit $90 per barrel for the first time ever,binary bets, contingent claims, spot options, box
Gold continues to surge and the US Dollar hit an alloptions, clickoptions, and offer market participants a
time low against the Euro. Banking stocks fell hardunique tool to profit from market movements.
amid concerns that the credit crunch may have evenBetOnMarkets Bet Types:
more profound and lasting effects than originallyOne Touch Bet: You would buy a one-touch bet if
feared. Bank of America reported trading lossesyou believe the market will touch a given point at
brought on primarily by the credit crisis. Despiteleast once before the bet expires. In other words, a
soaring energy prices, it was the energy giants and oilone-touch pays out, if at any time prior to expiration,
service handlers that fell hard on Friday due to fearsthe market touches or trades through the specified
over future earnings. Their sector's weighting in thebarrier. Example: [Pays 100 if the FTSE touches X
main indices may have magnified the overall slump.between today and date T]
Two year US treasury notes recorded their biggestNo Touch Bet: A no-touch bet is the opposite of the
weekly gain since 2002 as traders priced in a 70%one-touch bet. You would buy a no-touch bet if you
chance of another Fed cut while the ECB came untilthink the market will never reach a certain level within
renewed pressure from politicians to relax theira specified range of time. Example: [Pays 100 if the
tightening bias.FTSE does not touch X between today and date T]
For the moment though, US consumers in particularBull Bet: You would buy a bull bet if you believe the
may not feel the immediate pinch of the record oilunderlying security/index/currency pair will be higher
prices. Mark Zandi of Moody's (source CNBC) foundthan a certain level (also referred to as the barrier
that the current oil price is actually $11 below thelevel) on the maturity date. Example: [Pays 100 if the
inflation adjusted high of $101.70. In addition, adjustingFTSE closes higher than X on date T]
for inflation consuming spending is 3% less than inBear Bet: You would buy a bear bet if you believe
1980, household income up 42%, median house pricesthe underlying security/index/currency pair will be
up 40% and pump prices up just 1%.lower than a certain level (also referred to as the
So in the short term US consumers may be able tobarrier level) on the maturity date. Example: [Pays
weather this storm, but if this price pressure persists100 if the FTSE closes lower than X on date T]
coupled with an ever worsening housing market thenExpiry Range Bet: You believe that the market will be
the lifeblood of the US economy, the consumer willbetween two distinct levels (high and low) on the
eventually have to tighten their belts.expiry date. Example: [Pays 100 if the FTSE closes
Wednesday and Thursday's home sales data will helpbetween X and Y on date T]
us see how far down the line this scenario actually is.Barrier Range Bet: You believe that the market will
Thursday's crude oil inventories could have anever touch two pre-determined barrier levels (high
disproportionate effect on the market in light of theand low) before or on the date the bet expires. In
current market conditions. The US market's mayother words, when you buy a barrier range you will
bounce back in the short term as the selling pressurewin only if the market never touches the two barrier
could be a tad overdone, but the weight of negativelevels you have chosen. Example: [Pays 100 if the
economic sentiment may be too much of a wall forFTSE never touches X and Y between today and
this bull market to climb in the intermediate term. Adate T]
difficult market to call.Double Touch Bet: You believe that the market will
The currency markets may therefore offer thetouch two pre-determined barrier levels (high and
better trading opportunity over the next week. Withlow) before or on the date the bet expires. In other
a 70% chance of rate cut already priced into USwords, when you buy a barrier range you will win
markets and the ECB not expected to budge thisonly if the market touches both of the two barrier
side of Christmas, there is the possibility at least thelevels you have chosen. Example: [Pays 100 if the
Dollar could stabilise next week against the EuroFTSE touches both X and Y between today and
between now and the next FOMC meeting at thedate T]
end of the month. According to traders atUp or Down Bet: You win if the market touches
BetOnMarkets.com, a no touch 2.5 cents above theeither of two pre-determined barriers before or on
current spot price yields 8% over 7 days.the date the bet expires. Example: [Pays 100 if the
- THE END -FTSE touches either X or Y between today and date
Contact Details:T]
Email: Tel: +44 1624 678 883Double Up Bet: A Double Up bet pays two times the
Url: & Betonmarkets.co.ukpremium if the market rises above a given level
Address: Regent Markets (IOM) Limitedbetween the time of purchase and the close of
3rd Floor, 1-5 Church Streettrading. It expires at the close of business on the day
Douglas, Isle of Manof purchase of the bet. Example: [Pays 100 if the
IM1 2AGFTSE closes above X between now and the close of
is the leading fixed-odds financial betting website. Thetrading today]
website has processed over 10 million bets sinceDouble Down Bet: A Double Down Bet pays two
inception in 2000, and generates annual turnover intimes the premium if the market drops below a given
excess of US$ 100 million. Betonmarkets offers alevel between the time of purchase and the close of
wide range of fixed-odds financial bets on forextrading. It expires at the close of business on the day
rates, stock indices, and international stocks.of purchase of the bet.