Remember Oil?
There have been many activities missed by headlines writers over the last week due to the focus on the banking crisis. On any other week the rise in the price of oil would be top of the headlines says Betonmarkets.com's Michael Wright. Oil prices reached record highs for the seventh straight session last Wednesday after refineries in California and Texas said they had new outages and the government reported surprisingly large declines in oil inventories.
Most of the traders have blamed the rise in price for oil on the fact that oil refineries have been shutting down some of their refining systems for maintenance while others have broken down. Even during the week of Hurricane Katrina oil prices stayed below the 77$ mark, a level that has been surpassed this week easily.
Oil prices have a direct effect on consumer spending, with consumers flinching at price at the pump. Eventually oil companies and petrol stations
pass on these price increases meaning it can have graduating effect on the nation's finances. As a result they go out less, and try to stretch their
remaining money by spending less on frivolous items. The retail corporations on the other hand will feel the pinch twice as hard, as not only will their sales will be decreasing, their operating expenses will be increasing due to a higher heating bill.
As for relief on the oil price, there doesn't seem to be any help in sight, while the hurricane season is ending the cold weather has increased the need for heating oil which has caught many companies off-guard. Also not helping the matter is a new weather system in the Florida area which could turn into a stronger tropical storm. While traders aren't worried about the situation, companies are taking precautions and are evacuating non essential personal.
There are many ways a trader can profit from an increase in oil prices. When oil spikes up in price, stock indices tend to suffer. Other areas are the currency arena, where the USD/CAD pair is known as the commodities pair. When oil prices increase the pair tends to go lower. During last weeks slide the pair has lost almost 5 cents, which has almost brought the Canadian dollar to
par with its American neighbor. With Oil not hinting at a reprieve and tension mounting in Iran, it could be some time before the USD/ CAD reverses its decline.
With Betonmarkets.com a trader can profit from this possibility by buying a no touch trade, which compensates the trader for predicting the level which the pair won't touch. A no touch on the USD/CAD with a trigger above the daily high before the slide which is at 1.06 with a 25 day term to maturity can potentially yield 7% ROI. This means that if the US Dollar remains weak against the Canadian Dollar you could win.
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Fixed-odds financial betting offers particular advantages over other forms of financial betting and investments, such as limited risk, potentially high payouts, and unique market opportunities. Particularly popular is Betonmarket's Range Bet, which offers the opportunity to profit from a period of quiet market action.
Betonmarkets also offers the following bet types: the Bull/Bear bet, the One Touch bet, the No Touch bet, the Range and Expiry Range bets, the Double One Touch and Double No-Touch bets, and a variety of intraday bets. Contracts are available on foreign exchange rates, major stock indices, and stocks.
Fixed-odds bets are also known as binary options, binary bets, contingent claims, spot options, box options, clickoptions, and offer market participants a unique tool to profit from market movements.
BetOnMarkets Bet Types:
One Touch Bet: You would buy a one-touch bet if you believe the market will touch a given point at least once before the bet expires. In other words, a one-touch pays out, if at any time prior to expiration, the market touches or trades through the specified barrier. Example: [Pays 100 if the FTSE touches X between today and date T]
No Touch Bet: A no-touch bet is the opposite of the one-touch bet. You would buy a no-touch bet if you think the market will never reach a certain level within a specified range of time. Example: [Pays 100 if the FTSE does not touch X between today and date T]
Bull Bet: You would buy a bull bet if you believe the underlying security/index/currency pair will be higher than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes higher than X on date T]
Bear Bet: You would buy a bear bet if you believe the underlying security/index/currency pair will be lower than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes lower than X on date T]
Expiry Range Bet: You believe that the market will be between two distinct levels (high and low) on the expiry date. Example: [Pays 100 if the FTSE
closes between X and Y on date T]
Barrier Range Bet: You believe that the market will never touch two pre-determined barrier levels (high and low) before or on the date the bet expires. In other words, when you buy a barrier range you will win only if the market never touches the two barrier levels you have chosen. Example: [Pays 100 if the FTSE never touches X and Y between today and date T]
Double Touch Bet: You believe that the market will touch two pre-determined barrier levels (high and low) before or on the date the bet expires. In other words, when you buy a barrier range you will win only if the market touches both of the two barrier levels you have chosen. Example: [Pays 100 if the FTSE touches both X and Y between today and date T]
Up or Down Bet: You win if the market touches either of two pre-determined barriers before or on the date the bet expires. Example: [Pays 100 if the FTSE touches either X or Y between today and date T]
Double Up Bet: A Double Up bet pays two times the premium if the market rises above a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes above X between now and the close of trading today]
Double Down Bet: A Double Down Bet pays two times the premium if the market drops below a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes below X between now and the close of trading today]
Intraday Double Up Bet: Buy this bet to play a market rise between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE rises between the starting time hour and the expiry hour]
Intraday Double Down Bet: Buy this bet to play a market drop between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE declines between the starting time hour and the expiry hour]
Run Bets: These fun bets are over in the space of less than a minute; so you can make money in seconds. Here, you have to guess the last decimal digit of say, the USD/JPY (predict 3rd decimal place) after 5 ticks.
Name: Mike Wright
Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street,
Douglas, Isle of Man IM1 2AG,
British Isles.
Phone: 35621316105
Email: editor@my.regentmarkets.com
URL: http://www.betonmarkets.com
Article Source: ArticlesBase.com - Remember Oil?