IG Binary Revenues Up

Just goes to show that much like buying options, retail clients don't (on balance) profit from binaries. Money for old rope to the SB firms. Why not spread bet instead (or, gasp, trade the underlying)? Nice dividend announcement though.
 
I was thinking thats its good they make a decent profit and are growing these profits.

There is always the concern that because the SBs dont hedge binaries they will be out to ban winners.

Now they aint going to like it if you win and will play silly games to distrupt you, but i dont think they are going to ban anyone who gets lucky and makes upto 100K a year from binaries. But someone who makes 100s of thousands, now that starts to become a larger percentage of the total binary profits ...
 
lurkerlurker said:
Just goes to show that much like buying options, retail clients don't (on balance) profit from binaries. Money for old rope to the SB firms. Why not spread bet instead (or, gasp, trade the underlying)? Nice dividend announcement though.
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Lurkerlurker - I tried to answer this one in another thread (from my perspective) http://www.trade2win.com/boards/showthread.php?t=25297 on this board (not sure if I've got the link right - its the one started as a poll and headed "binaries v CFDs ... etc" started by Telcobert.
 
Can anyone explain more how binarybets turnover is worked out.Ive looked at the sheets and am lost. If I buy at£10 pp at 50 does that mean my contribution to their revenue is £500. What if I get out for a profit later how do they count that in. It seems if that is the case their turnover is small and their profits massive. Thanks
 
julian said:
Can anyone explain more how binarybets turnover is worked out.Ive looked at the sheets and am lost. If I buy at£10 pp at 50 does that mean my contribution to their revenue is £500. What if I get out for a profit later how do they count that in. It seems if that is the case their turnover is small and their profits massive. Thanks
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I think in this case the numbers quoted are profits. Where they say revenue I guess that its gains minus losses.

Just goes to show how important that it is to remain number one in your line of business. Even with the overheads they still pull in around twice what they spend. Almost 3 million on market data.... wow. I wonder how all this compares to the other firms. I guess the next biggest would be City Index (since they bought Finspreads) or CMC? Will any of them get near IG? Do CMC do any Binary products?

Steve.
 
CMC dont to binaries but are probably biggest for spreads and cfds. Id like to know how BBs profits are worked out. Their net profit per hour seems to be about £5000 according to my brief calculation. That would mean £100,000( 50,000 each side would mean 5000 profit) in bets every hour based over all of their products. That then means that a bet of £25 pp would be quite large. I thought they would be taking more than that.
 
If you like binaries, try options. Similar enough concept, and they are actually regulated by the FSA. Take a good look at options on IG.

FWIW, I wouldn't touch non-FSA (and FOS, FSCS) fixed odds financial betting.
 
jules101 said:
What are you thoughts about trading financial binaries on Betfair? Contracts with a precise settlement (first tick on or after the hour by Bloomberg), no delay in placing bets, no bet rejections, etc.
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I like Betfair, pretty good spreads on both dailys and intras in the last couple of months. You mention binaries Jules. They are not on BF. How do the stakes correlate? Is say 20 pound at quote 2 the same as 0.40 pp at odds binary odds of 50?

donaldduke said:
IG made £3.4 million from financial binaries in the first half of this year.
Up from £2.5 million for the same period last year.

http://www.iggroup.com/content/files/results_presentation_july07.pdf
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Anyone any idea when they will publish their annual report? I'd like to read more than just this presentation.
 
Jules in principle I love the idea, but I cant see how it can happen as betfair is an exchange therefore for financial markets the money cant be there with tight spreads. The person laying both sides with no rejection could lose a packet. hope im wrong as the idea and potnential is great
 
dgproject said:
I like Betfair, pretty good spreads on both dailys and intras in the last couple of months. You mention binaries Jules. They are not on BF. How do the stakes correlate? Is say 20 pound at quote 2 the same as 0.40 pp at odds binary odds of 50?
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That's correct yeah - decimal odds can be converted to binary prices by simply doing 100 divided by one to get the other. I've actually developed an interface for the Betfair API which works purely with binary prices and does all the odds/stake conversions automatically, see http://www.binarysoft.co.uk/bdi/ (Version 2.0 is due for release tomorrow and will be compatible with all Betfair markets)
 
julian said:
Jules in principle I love the idea, but I cant see how it can happen as betfair is an exchange therefore for financial markets the money cant be there with tight spreads. The person laying both sides with no rejection could lose a packet. hope im wrong as the idea and potnential is great
Click to expand...

Yeah this is one of the main difficulties with trying to MM on Betfair, however I still think it should be possible to run a decent MM service, posting large stakes with a fairly tight spread (although very tricky indeed!)
 
Jules....How are you getting on with your betfair idea. Any timetable you can share with us and do u talk to them directly. You mention that u wanted some ideas. Ive got some ideas but they are biased to the kind of products Id like to trade.

Id love to be able to bet on the market being up in 15,30 or 60 mins from now.This is available on betsfortraders but they are new so I dont trust them yet. Ladbrokes offer it but the prices close at 5 and 60 min intervals.So how about this for a product.Lets take 60 mins for starters. You as a market maker lay say 5/6 both sides that the market will be higher in 60 mins form now.A market maker could have a fixed pot in untill he withdraws it. The price would continually be linked to the futures/cash price.Once the button has been pressed both sides of the trade would be given their start time, price and closing time. The winner would then also give betfair a small comision.Any regualamarket maker would need a huge pot as there could be thousands of bets in the space of a short period of time. Most people dont use betfair because its time close is a fixed time, they cant get the price or volume they want.
Betfair have so much potential as they are nutural but dont seem to want to jump into a very lucrative market.
 
julian said:
Jules....How are you getting on with your betfair idea. Any timetable you can share with us and do u talk to them directly. You mention that u wanted some ideas. Ive got some ideas but they are biased to the kind of products Id like to trade.
Click to expand...

Making good progress at the moment, although I'm also busy with BinarySoft and other projects, so can't give you a precise date on when I'm planning to go live I'm afraid...


julian said:
Id love to be able to bet on the market being up in 15,30 or 60 mins from now.This is available on betsfortraders but they are new so I dont trust them yet. Ladbrokes offer it but the prices close at 5 and 60 min intervals.So how about this for a product.Lets take 60 mins for starters. You as a market maker lay say 5/6 both sides that the market will be higher in 60 mins form now.A market maker could have a fixed pot in untill he withdraws it. The price would continually be linked to the futures/cash price.Once the button has been pressed both sides of the trade would be given their start time, price and closing time. The winner would then also give betfair a small comision.Any regualamarket maker would need a huge pot as there could be thousands of bets in the space of a short period of time. Most people dont use betfair because its time close is a fixed time, they cant get the price or volume they want.
Betfair have so much potential as they are nutural but dont seem to want to jump into a very lucrative market.
Click to expand...

Yeah this could be a good idea at a later stage, but I think the aim for now is to get at least 1 permanent MM across all Betfair markets in order to prove to Betfair that the demand for financial betting still exists (the hourly FTSE intradays used to regularly get 200k traded per hour a couple of years back)
 
jules101 said:
I think the aim for now is to get at least 1 permanent MM across all Betfair markets in order to prove to Betfair that the demand for financial betting still exists (the hourly FTSE intradays used to regularly get 200k traded per hour a couple of years back)
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Jules, don't understand the argument: if there is not even 1 permanent MM now (and from what u say they disappeared over time ... while BF grew...) wouldn't this prove the opposite - there is no real demand for BF financials? :?: Or did u mean yourself, planning to MM there?

Bert
 
I'm planning on MMing at some stage yeah. One of the main issues at the moment is that the bots currently operating on the FTSE intradays post a spread which is a little too wide to be taken seriously (although things have been improving in recent weeks). There are also background bots operating at wide spreads which hoover up any bets when there are sudden swings in the market - a permanent MM presence across the entire range of Betfair financials will help to keep these background bots out of action and restore confidence in the markets.

BinarySoft BDI v2.1 will also have a revolutionary new way to set and edit stop losses which should help to boost the image of the Betfair financial markets further :)
 
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jules101 said:
BinarySoft BDI v2.1 will also have a revolutionary new way to set and edit stop losses
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Any market making greatly appreciated *g*. Best luck with it.

On the stop-loss you lost me. Why would there be a problem? With CFDs or spreadbets, ok. But BF is binary intraday or in the hour and risk is limited with the stake anyway...

(Unless I was not aware of sthg then I might be the first Buyer of your v2.1)
 
telcobert said:
On the stop-loss you lost me. Why would there be a problem? With CFDs or spreadbets, ok. But BF is binary intraday or in the hour and risk is limited with the stake anyway...
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The risk is limited by the stake yeah but I would have thought that most binary traders would not want to lose their entire stake when the trade goes the wrong way! Some people might like to go in and out of positions many times when trading and not necessarily let all bets run to expiry. Also, they will be very handy in BDI v2.1 when monitoring lots of markets at once (sports as well as financials etc.)
 
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