IG Binary Revenues Up

[telcobert]

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!

Well if we assume that I can a fair price for the hedge, in consideration of stochastics ... but spreads in binaries are notoriously wide so I'd probably always prefer to wait it out ...
Bert

 

[BinarySoft Chris]

Telcobert the "spread" doesn't really apply to Betfair - you can put your offers up inside the spread and get them matched quite a lot of the time... the concept of "stop losses" for binary bets can only really work with betting exchanges.

 

[donaldduke]

According to latest financial results IG made 4.8 million from financial binaries in the six months to December.

The cheats are minting it but they still put you on manual if you make too much money.

They have 6,000 binary bet clients. That means they are making about £1600 a year per client. Although i would guess its not uniformly distributed, probably less than 1000 hardcore losers lining the bulk of IG's pockets.


http://www.iggroup.com/content/files/interim_presentation_jan08.pdf











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[BinarySoft Chris]

Cheers for the link to those results - their betting exchange activities seem to be growing pretty fast. It will be interesting this year to see if any of IG's binary betting clients move to Tradefair and/or if IG will start MMing on that exchange as well - I've heard they are doing some MMing on Betfair's sports markets at the moment.

 

[BinarySoft Chris]

Although perhaps they will be focusing more on the recently acquired HedgeStreet exchange in the near future...

 

[donaldduke]

Cheers for the link to those results - their betting exchange activities seem to be growing pretty fast. It will be interesting this year to see if any of IG's binary betting clients move to Tradefair and/or if IG will start MMing on that exchange as well - I've heard they are doing some MMing on Betfair's sports markets at the moment.

I doubt if IG will ever make a market on Tradefair. For a start they cant reject or delay deals like they do on their own sites.

Hit IG binaries for anything over 50 pounds a point and see how often you get rejected or have to wait upto a few minutes for them to wait for the market to move in their favour before they accept..

 

[BinarySoft Chris]

Well Capital Spreads are the current MM and are doing a pretty decent job so far, posting usually around £5-£10/point on both sides of the spread - hopefully this will rise over time. IG have also been offering binaries for a lot longer than CS, so I'd have thought that IG would have a pretty accurate pricing model by now.

 

[leunt]

IG's prices are the same as tradefair's,this happened about a week or so ago.is a third party using their platform to mm or did IG take over from someone else?

 

[BinarySoft Chris]

Well there are 3 sets of prices on TF at the moment on the FTSE Hourly and Daily markets - two sets of £5/point and one £1.50/point. I will do some further investigation of this tomorrow, but I think that one of the £5/point spreads is IG, the other is Capital Spreads, and the third is another MM.

 

[BinarySoft Chris]

The current £5/point MM doesn't appear to be IG or CapitalSpreads, any idea of who it is? I've checked the following binary prices:

IG/binarybet
CapitalSpreads
CityIndex/Finspreads
ChoiceOdds

...and none of these seem to correlate exactly with the prices on Tradefair.

 

[Tim_UK]

probably just a program reading the average of the spread firm prices and posting these tradefair.

just looked at the volumes on tradefair for today's up/down ftse - a massive 2 quid matched so far on an exceptionally volatile day !!

 

[BinarySoft Chris]

Well that should change shortly - BDI v2.2 is about to go into public beta (free 3 months usage)...

 

[Tim_UK]

chris - have you considered a program to convert tradefair back to betfair type back/lay odds ?

 

[BinarySoft Chris]

BDI v2.2 is a binary interface to both Betfair and Tradefair with seamless switching between BF and TF markets

 

[BinarySoft Chris]

There are also several other new features in BDI v2.2 which improve the binary <-> decimal mapping for Betfair, and make trading a lot easier and faster in general.

 

[Tim_UK]

I realise that, but I would have thought there could be demand for a program to offer tradefair markets in the betfair style - assuming betfair cease offering such markets on their platform.

 

[BinarySoft Chris]

There may be a small demand, but the general trend nowadays is towards binary prices, especially for trading purposes - I've heard rumours that Betfair may be introducing binary prices natively into some of the sports markets as well.

BDI has a liability stake mode (since v1.1) which should help people previously used to decimal odds to adjust to binary prices. BDI v2.2 will also feature a "biased" trade out option which can be used to bias the trade out towards either outcome - this can be used to replicate a decimal odds trade such as a lay of £100 at 1.01 followed by a back of £100 at 1.02 etc.

 

[BinarySoft Chris]

Also regarding TF volumes - the FTSE 100 intras are growing steadily, and are similar in volume to BF now, although that's not saying a lot! However, I do expect volumes on all the TF markets will rise dramatically when API apps start supporting TF.

 

[leunt]

I've just had a look again and IG is present in these markets on tradefair,all intradays,dow daily,ftse daily,s&p and nasdaq.

 

[BinarySoft Chris]

The prices do seem to be fairly similar as IG, however they are not exact and are sometimes substantially different. As Tim_UK mentioned above, it may well be some kind of program doing a weighted average.