IG have started to do the above bets.
They are in a binary spreadbet format so you know your max. loss or actual profit when you enter a trade, which is good.
You also have the choice to close your trade before the EOD if you wish.
You could have bought the 'FTSE UP' bet yesterday afternoon at 14:30 at its lows of around 2 as it was sitting at lows of the day, and looking unlikely to rise.
If you had done so the risk was just 2xbet size, and after that nice rally you would have netted 100-2=98 -> 98xbet size! Minimum bet size is £3/point, so a 'gamble' of 6quid would've returned £294 on this occasion!
Yes not every afternoon is like this but interesting all the same.
Not bad risk/reward in anyones book!
Spread on FTSE is 2.4 points.
As FTSE has risen this morning there are good prices for down bets at the moment.
I have just put a low risk 'FTSE down' bet on IG risking just £16.50 for a profit of £283.50 if FTSE closes lower.
Price was 5.5 to buy, sell price (to close a position) 3.1
Can't really see a catch as such other than the usual SB spreads.
Just had a problem trading the binary bet online. Had to call to close the bet. Might be worth making sure you can contact them by phone while they are testing this new market. At the moment it seems a bit too easy to make money and I am sure they will stop the market if they start loosing too much.
But watch out - settlement is basis the official closing auction, not the cash ftse price at 4.30pm. So it's slightly different from the Noon one, which gets settled basis the first reuters/bloomberg print at 12.00.
Placing a bet a few mins before close if the Index is clearly -ve or +ve (ie not hovering around the previous close level) is pretty safe way of making a few points.
If you buy at say 90ish the amount you can lose is big however its an easy 10 points in the bag if you're certain that it won't move against you.