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Example 3.1: Football match

Оглавление

Arsenal are playing West Ham and the bet Arsenal to win is priced at 51/56 and the bet West Ham to win is priced at 29/34. [1]

You favour Arsenal but think it is over-priced. So you bet on West Ham to win (you pay 34). You go for £10 per point and your risk is £340 (34 x £10) and your potential profit is £660 (66 x £10).

The match starts and West Ham get off to a roaring start scoring the first goal after 10 minutes and Arsenal have a key man sent off. The binary price jumps to 65/68. This means that you could sell the bet at 65 – you are well up!

You decide you are going to sell, you sell at 65 and bag 31 points (the 65 sale price less you purchase price at 34) at £10 per point = Profit £310.

The match continues and Arsenal come back into the game and score two goals. Suddenly the West Ham to win price drops to 5/8.

It’s too good to miss, you buy at 8…

The following chart shows these movements.

Binary Trading

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