BetOnMarkets.co.uk

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Can’t wait? - If you would like to take a look at thebetonmarkets.co.uk trading system and set up a demo account,

then please go to www.betonmarkets.co.uk

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THE SMARTER WAY TO TRADEImagine you had a hunch that the earn-

ings from BP would be disappointing to

the market or that the US dollar would rise

against the British Pound in the next week

or perhaps that Abbey National would be

approached by HSBC Holdings in a po-

tential merger. How would you go about

profiting from this? How would you make

money out of the Footsie losing 25% in a

year? How can you buy and sell shares

all over the world without major inconve-

nience to yourself? This is what we had

in mind when we launched

Betonmarkets.co.uk in 2001.

Fixed Odds Financial Betting allows you

to trade or bet on price movements, much

like those in spread betting, but the key

difference is that you have a managed loss

or profit. All bets pay a fixed amount (or

nothing) on expiry. In other words, when

you buy a fixed-odds bet from

Betonmarkets.co.uk, you are entitled to

receive a payout, which is a fixed multiple

of the amount you have staked. The

unique structure of fixed odds betting

means that under the umbrella of one deal-

ing account, traders are able to deal in

many financial instruments including: In-

dividual UK and US Stocks, Global Stock

Indices, and Currency Pairs.

With digital bets you always know how

much you may win, and how much you

stand to lose if the market moves against

you. If you want to bet £5, you can be

sure that you will only lose £5 should the

markets move against you. There are no

hidden surprises. This is very different from

financial spread betting where if you judge

wrongly, you might lose a great deal; over

and above the amount deposited. Digital

bets also offer several advantages com-

pared to buying shares through a tradi-

tional stockbroker. There is no stamp

duty, profits are not subject to capital

gains tax, and punters can easily bet

down on a share price as well as bet up.

Unlike futures or stocks, when you buy a

fixed odds bet, you have no right or obli-

gation to accept delivery of the contract,

share or commodity, as all settlements

are cash in nature.

"It's likeshooting fishin a barrel!"

Jane Bollinger fromprofitonmarkets.com

Bets can be customized in real time on

the website. All you need to do is to de-

termine the desired payoff, the currency

pair (or equity or stock index), the target

levels, and the expiration date. The site

then delivers the price of the bet based on

the market conditions at the moment.

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BetOnMarkets.co.ukBetonmarkets.co.uk is also enhanced with

unlimited historical financial data and

charts on the markets which you can mine

for the exact information you need to help

you trade successfully. These services

are free and very simple to use.

Once a bet has been executed this will

be displayed in your portfolio and you have

the possibility to close your bet out be-

fore the final settlement, to cut your losses

or pick your profits out early. You can

also place market orders allowing you to

buy bets at lower prices than those

prevailing at the time the bets were priced

or 'stop loss' orders enabling you to

automatically sell bets back to us once

the market price hits a specified level.

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1. Decide on your view on a particular

market direction - This may be the hard-

est thing to do, especially for the novice

trader. We offer our clients a variety of in-

dependent market information as well as

technical information, which can aid a

trader in determining their directional view

on the market.

2. Decide how much of a Payoff you

would like to receive should your view prove

to be correct.

3. Decide your time horizon i.e. the run-

ning period for the bet in question.

4. Calculate the cost - The cost of a bet

is dependent on current market conditions

and the likelihood that the bet will end up

in the money.

5. Once a bet is purchased the money

is debited from your Betonmarkets.co.uk

account and the bet will be displayed in

your portfolio.

For Example:

a) You decide, after analysing the Dow

Jones index, that in the next few days the

Dow Jones will fall and will reach a level

lower than 9,270 points (suppose the cur-

rent level is 9,300).

b) You decide to win £1000 if you are

correct about the movement of the Dow

Jones. You buy a BEAR bet to "Win £1000

if Dow Jones during the next five days will

be lower than 9270 points."

c) The computer system calculates that

the cost of this bet is £460. If you are

satisfied with this price, you can buy the

bet. If your prediction proves correct and

the Dow is lower than 9270 points after 5

days, then the bet will expire with a pay

out of £1000. Alternatively, if the Dow Jones

turns out to be higher than 9270 points on

the expiry date, then the bet will expire

with a value of zero.

d) You can sell your bet back to us be-

fore it expires, if you see the Dow Jones

going higher and there is a reducing pos-

sibility of winning the bet. Alternatively, the

Dow Jones may be falling and the bet is

worth more and you simply want to cash

in while you are ahead. The present price

of the bet, i.e. the amount you will be paid,

is re-calculated considering the current

situation on the markets.

HOW DOES IT WORK ?

"love thewebsite!"

J. Moyers .

BetOnMarkets.co.uk

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Opening An Account is Easy

We pride ourselves in offering the easi-

est and lowest entry to financial betting

as you can open an account in less than

5 minutes and start trading with just £50.

You can register online, fund your ac-

count with a credit card or debit card and

start betting in just a few minutes. We

don't require you to fill in and send us any

fax application forms to create your ac-

count. You also have the opportunity to

create a virtual money account (i.e. demo

account) to test our system risk-free be-

fore creating a real money account and

committing yourself to betting with real

money.

What are the Advantages ofFixed-Odds Betting?

Make money on UK or US listed com-

panies irrespective if the stock market is

crashing, booming or even trading side-

ways.

Your risk is limited to your stake at all

times yet high leverage is still possible;

you risk a fixed amount of money (pur-

chase price of the bet), which constitutes

your maximum liability.

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Versatility - you can adapt or adjust your

positions according to any situation that

arises. This means you can do everything

from protecting a position from a decline

to outright betting on the movement of the

stock markets.

High Gearing is still possible - that is to

say you can win many multiples of your

stake (which is great when you realize that

your stake is the maximum you stand to

lose)

Minimize the risk, limit your losses - set

up triggers and stop loss orders to protect

your positions and automatically sell the

bets back to us once the market price

hits a specified level.

You can bet on the markets for as little

as £5 and as much as £50,000. You

choose your own bet size.

You don’t need to be wealthy to begin

with - You can open an account with as

little as £50GBP.

*Tax Law may differ if you pay tax in a

jurisdiction other than the UK. If in doubt,

please contact your local authorities for

clarification.

Instant, Easy, Simple and Flexible - Our

dealing platform offers near-instant execu-

tions (average 3 seconds) with unprec-

edented simplicity and ease of use. You

choose the closing time and date for all

contracts which can be as little as 10

minutes (as for the Intraday Doubles) from

the current time and as long as 6 months.

You choose your potential winnings per

trade and you never have to risk more than

you want to. You don't need to monitor

the bets or regularly follow the markets;

you can let contracts expire on the settle-

ment date without having to determine

when to cut a losing position or to pick

profits.

Tax-Free Profits* - All bets are free of

tax in the UK.

The Demo Account allows you to try our

dealing system risk-free (paper-trade) be-

fore using real money.

You can close your bet at any time by

selling it back to us before the final settle-

ment, thus effectively allowing you to play

the intraday fluctuations in the markets.

Bet on world indices, like the FTSE,

Wall Street, Nasdaq, S&P500 as well as

individual shares, gold and currencies.

Trade Forex, Stocks and Indices from

one account and a single platform.

10 GREAT REASONS TO SELECT US

BetOnMarkets.co.uk

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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]

Illustrated Example

Suppose you had bought a one-touch

bet on the 16-Jun-03 (when the FTSE was

quoted at 4190.4 points) for a cost of £95

with a payoff of £1000 should the FTSE

index trade at or through 4087.9 at any

time within the 9 days which followed (i.e.

expiring on the 25-Jun-03). You would have

made more than 10 times your stake

(£1000/£95) since the FTSE traded

through the 4087.9 level on the 22-Jun-

03.

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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]

In this specific example the FTSE hit

your one-touch target barrier before the

actual expiry date (payout triggered on the

22-Jun-03, but the one touch bet was due

to expire on 25-Jun-03) and this is all it

takes to trigger the payout. This is not

always possible since there is a risk/re-

turn trade-off but this example illustrates

how its possible to achieve high leverage

using digital bets and that its possible to

profit from bearish markets as well as from

bullish market trends.

Note: bet prices vary according to market

volatility and other factors. Price examples in this

document were valid at the time the document

was generated only.

DIGITAL BETS EXPLAINED

BetOnMarkets.co.uk

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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 ma-

turity date.

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Bear Bet

You would buy a bear bet if you believethe underlying security/index/currency pairwill be lower than a certain level (also re-

Example: [Pays £100 if the FTSE closes

higher than X on date T]

Illustrated Example

Suppose that on the 12-Aug-03 the Dow

Jones was quoted at 9271.76 points and

you predicted that the level of the Dow

Jones would keep rising and would reach

a level higher than 9400 in the 5 days

which followed.

So you would have bought this bull bet:

I wish to win £500 if in 5 days time (i.e.

ferred to as the barrier level) on the matu-rity date.

Example: [Pays £100 if the FTSEcloses lower than X on date T]

expiring on the 17-Aug-03) the Dow Jones

Index is higher than 9400.

If you would have bought this bull bet on

the 12-Aug-03 you would have risked a

total of £75 (stake) for a potential payout

of £500 (total payout including stake) if

the level of the Dow Jones index turned

out to be higher than 9400 on the 17-Aug-

03. Had you bought at £75 you would

have won more than 6 times your stake

since the Dow Jones closed at 9412.45

on 17-Aug-03.

DIGITAL BETS EXPLAINED

BetOnMarkets.co.uk

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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 lev-

els you have chosen.

Example: [Pays £100 if the FTSE never

touches X and Y between today and date

T]

A Barrier Range Bet can be used as a

hedging tool against low volatility and

range trading. You can specify an upper

AND lower market level and as long as

the market does not touch ANY of these

barriers prior to expiration, you will be paid

your predetermined payout.

Illustrated Example

You think that Microsoft stock will

breakout of its trading range of 26 or 32 in

the next twenty days, but I want to hedge

against low volatility and range trading.

You buy a twenty day (20 days) Microsoft

Barrier Range bet with 26 and 32 barrier

levels with a £5,000 payout for a £750

stake.

Suppose that Microsoft is currently trad-

ing at 29. Fifteen days from now:

Microsoft does not breakout and does

not touch 26 OR 32 = Earn £4250

Microsoft breaks out and touches either

26 OR 32 = Bet Expires Worthless, lose

£750 stake

In this example, if Microsoft breakouts,

you will benefit from trading profits. If it

range trades, you will at least receive your

predetermined payoff.

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Expiry Range Bet

You believe that the market will be be-

tween two distinct levels (high and low)

on the expiry date.

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

Example: [Pays £100 if the FTSE

closes between X and Y on date T]

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]

DIGITAL BETS EXPLAINED

BetOnMarkets.co.uk

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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]

An up or down bet can also be used as

a hedging tool against a breakout in any

direction. You can specify an upper AND

lower market level and as long as the

market touches ONE of these barriers

prior to expiration, you will be paid your

predetermined payout.

Illustrated Example

You think that the British Pound/USD

will range trade between 1.520 and 1.680,

but you want to hedge against a break of

either 1.510 OR 1.690 in the next two

months. You buy a two month (60 days)

Up or Down bet with 1.510 and 1.690 bar-

rier levels with a £10,000 payout for a

£2,000 stake.

Suppose that the British Pound/USD is

currently trading at 1.600. A month and a

half from now (45 days) from now:

British Pound/USD breaks out and

touches either 1.510 OR 1.690; Returns

= £8,000

British Pound/USD continues to range

trade and does not touch either 1.510 OR

1.690 = Bet Expires Worthless, lose

£2,000

In this example, if GBP/USD continues

to range trade, you will continue to ben-

efit from range trading profits. If it breaks

out, you will receive your predetermined

payout.

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DIGITAL BETS EXPLAINED

Intraday Double Up Bet

Buy this bet to play a market rise be-

tween two given hourly market times to-

day. 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

Intraday Double Down Bet

Buy this bet to play a market drop be-

tween two given hourly market times to-

day. 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 pre-

diction.

Example: [Pays £100 if the FTSE rises

between the starting time hour and the

expiry hour]

your stake if the market follows your pre-

diction.

Example: [Pays £100 if the FTSE de-

clines between the starting time hour and

the expiry hour]

BetOnMarkets.co.uk

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Super Double

The Super Double contract is a bet on

the movement of a market between three

given times in the trading day. For ex-

ample, you might bet that the market rises

between 9h00 and 10h00, and then ral-

lies again between 10h00 and 11h00. If

you are correct, the bet will return a total

payout of approximately 4 times your

money. You also have the option of re-

versing the bet by selecting 'unless' in-

stead of 'if' in the bet wording, and in such

case you would win if the market follows

any path except the one selected. The

total returned payout (including stake) in

this case would amount to approximately

1.33 times your stake.

Example: [Pays £100 if the FTSE rises

between 9h50 GMT and 10h00 GMT and

then rises again between 10h00 GMT and

10h10 GMT

“I have been trading financial markets for over 17 yearsboth for financial institutions and on my own account andI have never seen such an easy to use platform asbetonmarkets. Thanks to Betonmarkets the private tradernow has access to the same tools that the big boys havebeen using for years.”

Vince Stanzione from www.fintrader.net

Bet sensibly !Financial betting can generate losses as well as profits - please bet

only with money you can afford to lose.