Binary betting has become very popular amongst forex traders in recent years because these markets provide you with a new way to trade the currency markets.
Unlike conventional forex trading where you either go long or go short, depending on whether you think the currency pair in question will rise or fall, binary betting enables you to essentially bet on the price hitting a certain target or to stay in a certain price range, for example.
The price quoted will always be between 0 and 100 and will expire at either 0 or 100 depending on whether the outcome is successful (100) or unsuccessful (0).
So to give you an example, the current price of the GBP/USD pair is 1.7087 at the time of writing, and the quote for the price to be above 1.7000 at the end of July 2014 is currently 70.2 - 80.1, ie 70.2 to sell and 80.1 to buy.
Therefore if you are extremely bullish on the GBP/USD pair and think it will easily close above 1.7000 at the end of this month, you might think about buying the 80.1 quote for £10 per point.
If you are right, and it doesn't matter how much the price exceeds 1.7000, the market will close at 100 and you will have banked £199 (£10 x (100-80.1)). If you are wrong, however, you will lose £801 (£10 x 80.1), so although it is already 87 points above this critical level right now, it is quite a risky bet because you are essentially risking 80.1 points to win 19.9.
That's why many traders look for value bets when trading the binary markets. Indeed I'm sure many bearish traders will be tempted to sell at 70.2 and risk 29.8 points in the hope of getting 70.2 times their stake if the price of the GBP/USD falls in the coming days and stays below 1.7000.
Anyway I haven't even got to the main point of this article yet, which was to basically tell you that you can now trade super-fast binary markets (providing of course that you live in a country where binary betting is allowed) because IG (formerly IG Index) now offer Sprint Markets:
In addition to offering a range of hourly, daily, weekly and monthly binary markets for the major currency pairs, they now offer quick-fire 1, 2, 5 and 20-minute markets as well. So there are endless markets for you to trade throughout the day.
I have to admit that these short-term markets don't really appeal to me because the intraday price movements can be quite random at time, and prices can move in an instant and could easily result in quick-fire losses. Plus of course it could be very costly if you temporarily lose your internet connection, for example.
Anyway I just wanted to highlight some of these short-term binary markets because they may be of interest to you if you only have a small window in which to trade every day, or if you are someone who is quite skilful at trading these shorter time frames.
If you would like to find out more, you can do so by visiting: