Binary options trading

Betting on the direction of FX and stock indicies using binary options:
http://www.mansion88.com/

Financial Bets allow you to bet on discrete financial events that have only three non-mutually exclusive outcomes; Win, Loss or Draw.

A discrete financial event is defined as the proposition that the price level of a financial instrument will end OVER or UNDER a specified price level at some future date and time. The latter is called the 'Term'. A 'Term' may be in hourly cycles or one-day duration.

Prices on such financial events are quoted in Binary Odds and are quoted during market trading hours of that financial instrument ("in-running"). Binary Odds are quoted between 0.00 and 1.00. You do not need to wait on the outcome of the financial event and can "close out" to take an early profit or cut loss if the events are going against the bet.

Game Features
MANSION88's Over/Under has the following features

The three key facts about Over/Under are:

(1) The Financial Event

There are 2 fundamental elements in each proposition or financial event

A. The specified or contracted Price level

The specified or contracted Price level is used to compare against the actual market price level of the financial instrument at the expiry date and time to determine the result of the bet.

B. The Term

The term is the expiry date and time of the proposition or financial event.
(2) Binary Odds

Binary Odds is the price offered on each proposition or Financial Event. Binary Odds is quoted between 0.00 and 1.00

(3) Result

There are only three non-mutually exclusive outcomes; WIN, LOSS or Draw. You win when the actual market price of the financial instrument is in favour of or agrees with the proposition or Financial Event you bet on. When actual market price of the financial instrument is the same as the proposition or Financial Event you bet on, a Draw is resulted.

Example One:

Take the daily Hong Kong Index as the financial event. The proposition is for "HK to end OVER 28,000 at 08:00 GMT or 16:00hours Hong Kong time". The Binary Odds is quoted as

OVER UNDER 28,000 0.430 0.650 If you think the HK will end OVER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time, you would place a bet on OVER at 0.430.

You stake USD100 for the bet to end OVER 28,000 at 0.430.

This will cost you USD43 (USD100 x 0.430).

- If the actual market Hang Seng Index finishes over 28,000 at 08:00 GMT or 16.00hrs Hong Kong time, you WINs USD57 (USD100 x [1-0.430])
- If the actual market Hang Seng Index finishes under 28,000 at 08:00 GMT or 16.00hrs Hong Kong time, you LOSS USD43 (USD100 x 0.43) on the bet.

Win, Loss and Draw Outcomes on Financial Events are calculated in the following manner:

WIN = (1.00 minus Binary Odds entered) times your stake or bet size

LOSS = Binary Odds entered times your stake or bet size

DRAW = You neither Win or Loss

Example Two:

Assuming the same prosposition, "HK to end OVER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time" with Binary Odds at 0.430.

As above, you think the HK will end OVER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time so you placed your stake USD100 for 0.430.

This time, the actual market Hang Seng Index does not end OVER 28,000 on the day, so your losses would be:

100 x 0.430 = USD 43

Example Three:

Assuming the same proposition again, "HK to end OVER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time" with Binary Odds at 0.430.

This time, after placing the bet, you think the HK will NOT end OVER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time so you place another stake USD100 on the opposition proposition, "HK to end UNDER 28,000 at 08:00 GMT or 16.00hrs Hong Kong time", with Binary Odds at 0.650.

You are correct and the HK does not end OVER 28,000 on the day (i.e. it closes down), so your net loss would be:

100 x (1.00 - 0.650) - 100 x 0.430 = USD 8.00

If you are new to financial betting, we recommend you start with small stakes (from just USD1.00) to get a feel before risking too much.

Closing Out

A financial bet can be closed out before the end of the lifetime or expiry date and time of the bet. This allows you to take an early profit or cut your losses if the bet is going against you.

To close out, you bet in the opposite direction to your open position. Go back to our original example of the HK to end OVER 28,000 on the day, which has a Binary Odds of 0.430.

Later in the day the market Hang Seng Index has risen and Binary Odds is now offering a price of 0.130. To close this bet and take an early profit, you would bet in the opposite direction by placing a stake of USD100.00 for the HK to end UNDER 28,000 at 0.130. Your net win on this bet would be:

100 x (1.00 - 0.130) - 100 x 0.430 = USD 44.00

So if you took a bet on OVER, you can take a bet on UNDER to close, or vice versa. Further, you can perform a partial close where you stake less than the original stake, therefore leaving part of the bet running.