This guide offers an betting. These work in the same way - you bet on an event happening, if it does the bet settles at 100, if not it settles at zero. Binary bet markets are offered on most of the big contracts such as the stock indexes, the larger and more volatile shares, foreign exchange betting some commodities. However, the range of markets offered does depend on which broker is used. Some only offer a limited range of Binaries. So the winning margin is of no importance, binary that the horse won. You are betting on an event happening or not happening, the FTSE closing UP for example. So if it closes 1 point or points higher the winning bet still pays the same betting the losing bet will still lose the same. This is in contrast to traditional spread betting where both profits and losses are theoretically open ended. Binary bets are extremely sensitive to the price of the underlying and therefore binary move very quickly, especially when the markets are volatile. New traders are advised to watch how and why the binary markets move and trade for several days before risking binary capital. Also, because Binaries can move quickly all orders have to be entered via the online trading platform and are not accepted via the telephone. Some love them, others think of them as slightly gimmicky. My own personal view is simple - any tool or product that adds flexibility to the financial markets is welcome. This guide offers an explanation WARNING! This guide offers an explanation Binary Betting was developed by the Spread betting firms and is another way of speculating on the markets, and like spread betting the profits are also tax-free. How a Binary betting works is relatively simple, read this page for more details WARNING! And so binary bets are always being quoted right up to binary the market closes. This means you can take partial profits, losses or even dump your position before the bet expires. Also, no margin is charged as the bet has a fixed risk but you will need to have sufficient money in your account to trade.