Difference between binary betting and spreadbetting?

Hi, i'm new to this thread and have one (probably stupid) question. Anyway what is the difference between spread betting and binary betting? I can't seem to differentiate the two yet the two are separated topics on the t2w threads.

Thanks alot!

Hi biff

Welcome to T2W, no such thing as a silly question. rather than try to confuse you with my own explanations have a read of these two links, I think they may help you understand the differences. If its still not clear, by all means ask some more questions.

http://www.learnmoney.co.uk/spread-betting/basics-1.html

http://www.learnmoney.co.uk/spread-betting/binary-intro.html

biff

With binaries you know the max profit or loss when you place the bet

biff

The other thing to note is that binaries are not regulated by the FSA whereas spread betting is.

re max loss - Spreadbetters do offer a guaranteed stop loss (you have to pay extra for it) tho it's normally about 10% away from orig price. If your trade goes for you then it should be poss to move the GSL so as to trail any winning position.

On a daily basis Binaries are faster moving and offer a bigger profit or loss but far contracts using a GSL could be more rewarding i.e. over the last 4 wks the Dax has clocked up over 700pts to the upside and a trailing GSL would be bagging big profits + freeing margin so as to allow another trade to be put on whilst still letting the orig one run.