7.13. Financial events

Terms and definitions

Financials (financial betting) are bets on the outcome of financial events.

Financial events involve a set of market prices (quotations) for various financial instruments, such as currency pairs (EUR/USD, etc.), equity indices and other instruments. Information about these instruments is received from an independent provider of financial information and then used to offer markets for placing bets.

An independent provider of financial information is an independent organisation that provides quotations: the ‘bid’ price (at which the ordinary participant of the financial market proposes to sell the financial instrument) and the ‘ask’ price (at which the ordinary participant of the financial market proposes to buy the respective financial instrument). Our independent provider of financial information is Dukascopy Bank SA.

The outcome of a financial event is the last (final) price offered in a given interval of time (5 minutes, 1 hour, etc.). Outcomes of the financial events for currency pairs are determined on the basis of the bid price.

Bets are accepted on the principle that the outcome of the financial event will be above or below the starting price at the time bets were placed. If the outcome of a financial event is exactly equal to the starting price when the bet was placed, the payment is made using odds of 1.00, thus voiding the bet and returning the original stake.

Example: Financial events. EUR/USD (1-hour interval). At 13:15 you place a bet that, by the end of the hour, the price of the Euro will be above the level of 1.47680 in comparison to the US dollar, which was the rate at the time of placing the bet. If the price is above 1.47680 at 14:00, your bet wins. If the price is below 1.47680, the bet loses. And if the price is exactly 1.47680, the payment is made using odds of 1.00, thus voiding the bet and returning the original stake.

How to place a bet

Enter your bet stake, click on the price for the selection in which you are interested. Your bet will then be placed, providing you have enough funds in your Account and the bet meets our Terms and Conditions. You will see a message confirming whether your bet has been placed or not. The maximum amount you can place on a chosen selection is shown in the ‘Max stake’ box.

Change in levels/odds when placing a bet

If the price changes to the benefit of a customer at the time a bet is being placed, the bet is accepted with at the new price. A popup window will appear with a message: ‘Your bet has been placed at the level/odds changed: initial level/odds - ...’. These bets will be highlighted in green on the Bet History page.

Examples:

1) Changes in levels when placing a bet—you place a bet that, by the end of an event, the price of the Euro in relation to the US dollar will be above the level of 1.47680 offered when the bet was placed. If the level decreases to 1.47665 whilst you are placing your bet, your bet will be accepted at this new level of 1.47665. If the level changes to any value above 1.47680, your bet will not be placed, and you will see a message offering you the opportunity to place a bet at the new current level.

2) Changes in odds when placing a bet—you place a bet that, by the end of an event, the price of the Euro in relation to the US dollar will be above the level of 1.47680 with odds 2.12, which was offered when the bet was placed. If the odds increase to 2.15 whilst you are placing the bet, your bet will be accepted at the new odds of 2.15. If the odds change to any value below 2.12, your bet will not be placed, and you will see a message offering you the opportunity to place a bet at the new current odds.

Custom Permissible Error (CPE)

A customer has the option to set a custom permissible error (slippage, or an acceptable margin) up to a certain number of points (at fixed levels it is set as a percentage of the odds), which means that the customer can automatically agree to accepting bets at levels/odds that have changed to their disadvantage. The minimum CPE is 0.00001. These bets will be highlighted in red on the Bet History page. According to the normal Terms of Financial Events, if the level/odds change to the disadvantage of the customer whilst placing a bet, then the bet will not be placed at these new odds, and the customer will see a message offering them the opportunity to place a bet at the new current level. However, if a level changes to the detriment of the customer by an amount less than the CPE the customer has set, the bet will be placed without any such message.

Examples:

1) CPE with static odds—you place a bet that, by the end of the event, the price of the Euro in relation to the US dollar will be above the level of 1.47680, which was the rate at the time of placing the bet. You set the CPE to 0.00004. As a result, if the level changes by less than 0.00004 at the time the bet was placed (up to and including 1.47684), your bet will be accepted at the higher level.

2) CPE with static levels—you set your CPE to 10%. If the odds were 7.50 (CPE=0.75) at the time of placing the bet, then the bet will be accepted as long as the odds are greater than 6.75. If the odds at the time of placing the bet were 1.27 (CPE=0.127), then the bet will be accepted as long as the odds are 1.143 or greater.

Range

Range betting—this option is only available with static odds. Such bets are accepted once a player enables the ‘Range’ mode by ticking the relevant Ranges checkbox. Bets are accepted based on the outcome of a financial event being within or outside of the price range specified at the time of placing the bet. If the outcome of a financial event is exactly equal to one of the range limits on which the bet has been made, the bet is settled at odds of 1.00, thus voiding the bet and returning the original stake.

Last Modified Date: 11/06/2020