Financial Bets – Advantages

With more and more people placing their bets on financial instruments like securities, bonds, shares and commodities like gold, silver, oil and edible items, instead of trading or investing directly into the market, it has become important to analyze the reason of interest in assuming a greater risk when people can easily trade the same things in a systemized and legal manner.

There are obviously many attractions attached to betting to divert people from trading and investment to assuming bigger risks. The reasons, we shall categorize as advantages of financial bets over trading in market.

Bigger Profits:

 Since financial bets involve higher degree of risk, hence they carry better return of investments. While trading in markets you invest on a single share or a commodity, hence the fluctuation is limited and so are the profits from such transactions. In betting since you bet on the full market, the movement is more and so are the profits. Putting your money elsewhere may give you a profit of 10-15% to the maximum, while financial bets may fetch you returns as high as nearly 40% of the investment on a given day.

Systematic:

Financial bets are made by people through an organized system that works almost like a stock exchange. The company organizing the bets has proper software that takes the orders and places the bets. The payment system is also such that there is no scope of fraud or cheating.

The software are designed in such a manner that bettors feel that the betting is one to one, while the truth is that people from around the globe are participants and the company is like a mere broker to  facilitate the event.

No Income Tax or Capital Gains:

The best advantage of financial betting perhaps is that the earnings from financial betting are totally free of cost for the bettors. The law in several countries allows the earnings from financial betting from income tax and charges the same from the betting companies, the only rule being that the company must be registered as betting company.

This is the single largest attraction that draws hundreds of potential stock and commodity players to financial betting.

No need to maintain books of accounts:

Since the earnings from financial bets are free from income tax, hence the need to maintain long and tedious books of accounts and transaction details is also eliminated saving money and time in the hands of the bettor.

Quick Settlement of Transactions:

The settlement of account for the bets placed is almost instant and is done mostly on the spot or at the most the next day, while settlement of account in stock exchanges takes 3-5 days.

More Opportunities of Earning:

One of the salient features of financial bet is that a person has the opportunity to make money when the market goes up and the same opportunity is present to a bettor when the market goes down.

This is an important feature these days because the world market is sluggish and is following a downward trend.

Any Time Trading:

Since financial bets are made on a global platform, hence the opportunity to bet is present in all the markets in the globe. The betting companies operate in almost all the countries, either through their own offices or through their designated agents and further the opening and closing time of most exchanges are different giving betting opportunities to the bettors.