What Exactly Are Financial Fixed Odds?

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Using financial fixed odds as a lower risk method of trading the markets is one of the undiscovered gems of financial trading.This form of trading is little known outside the trading world and yet arguably it offers one of the easiest methods of making a financial profit from the markets.While it is not widely recognized as a trading method, fixed odds is becoming increasingly popular with those in the know who are enjoying the high profits and limited risks that trading with fixed odds provides.

The fixed odds trade pays out a pre agreed return at the expiry of the trade. If you have called the market correcty you will earn a profit while you will lose your stake if the outcome proves incorrect. Of course as with all forms of financial speculation there are risks attached, but it is the way in which these risks are managed that markets fixed odds out as offering something different.

Trading with a fixed outcome is simple to understand.You neither purchase or own the asset involved, but instead place a fixed odds trade on the asset.When the trade expiries you will earn a predetermined price which will be dependent upon the exact conditions you set on the trade outcome.The level of risk that you want to take on the position essentially determines the level of payout that you will receive.Most of the trades types available work on a 'time and duration' basis.This lets you create returns of anywhere from 3% right through to 500% and more.

This ability to create your own trades is one of the key advantages of using the fixed odds trading method for your investment trading decisions.Firstly is allows you to construct a trading strategy around the way in which you want to trade.You can opt to place your trades to run over minutes, hours, days or even months.The ability to further adjust the trade to suit your analysis is also possible on all trades.You can alter the time duration of the trade and also move your levels to increase or decrease the return on offer.

The wide variety of trade outcomes with fixed odds finanical trading adds to the flexibility of the fixed odds trading method. In addition to the usual 'Higher and Lower' trade types which are offered by binary brokers you will find the following trading options available with; Touch trades, Boundary outcomes, Flash Trades and Intra day trades.

Each of these can be tailored to suit your strategy and will allow you to build a successful strategy to profit from a range of market moves.

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