Calculating Winnings and Losses
Binary bet winnings and losses are calculated in the following manner:
When BUYING, Profit/Loss = The closing price minus the opening price times your bet size (per point)
When SELLING, Profit/Loss = The opening price minus the closing price times your bet size (per point)
Example One: The bet is that "the FTSE will close higher on the day". The price is 38-43. You BUY (agree with the proposition) at 43 for £5 per point. The FTSE does close higher on the day, meaning that the bet makes up at 100. Therefore your winnings are:
(100 - 43) x £5 = £285Example Two: The same bet, that "the FTSE will close higher on the day". The price is 38-43. You BUY (agree with the proposition) at 43 for £5 per point. The FTSE does NOT close higher on the day, meaning that the bet makes up at 0. Therefore your winnings - or losses in this case - are:
(0 - 43) x £5 = -£215Example Three: The same bet, that "the FTSE will close higher on the day". The price is 38-43. You SELL (disagree with the proposition) at 38 for £5 per point. The FTSE does NOT close higher on the day, meaning that the bet makes up at 0. Therefore your winnings are:
(38 - 0) x £5 = £190Read more about this topic: Binary Betting
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