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Online Casino Wagering Explained

Globally understood means of trading, b. Not a sports-like fixed odds format, i. an investment, not a bet, c. Disguises the true value of the bet(!) in terms of over-round. This article strips bare the actual profit margin of the binary options platform and ultimately compares the profit margin with the game of roulette. Binary Options Over-Round The binary options over-round is the book-maker's profit margin. In an 'event' the probability of all the outcomes has to add up to 1, or 100. If one added the equivalent probabilities of a book-makers price for each individual outcome in a single event then the aggregate will be in excess of 1, or 100. This margin in excess of 100 is the book-maker's over-round which reflects the book-maker's profit margin.

Online casino wagering explained higher the over-round the more profitable the book-maker which in turn means lower probability of winning for the punter. For example, if there were two Muhammad Ali's in the ring, the second Muhammad Ali being cloned from the first so that they were exactly as good as each other, then the probability of each winning would be 50. Since the probability of all the contestants winning in any event is 100, in this case the probability of one of the 'Ali's' winning is made up of the sum of the individual probabilities of the two boxers winning, i.

5050. Around the world this probability can be expressed in numerous ways, e. the word 'Evens' or 'Even Money', 100 in the US, 1. 0 in China, -1. 0 in Malaysia, 2. 0 in continental Europe etc. Assuming fractional odds, i. 'Evens', then if the book-maker offered both boxers at Evens then online casino wagering explained over-round would be zero, i. 100 - (5050) 0 If the book-maker offered each boxer at 1011 (1110 ON) then his over-round will now be in excess of 100 and therefore assuming a balanced amount of money goes on each boxer, then the book-maker is guaranteed a profit.

Why. Because 1011 reflects the probability of 52. 381 providing the bookmaker with an over-round of 4. 762. Probability 1 (Odds 1) Probability 100 (1011 1) 52. 381 Percentage Returns to Binary Options Over-Round So how does this work for binary options platforms. Instead of two 'Ali's' in the ring there are two new contestants, one is called online casino wagering explained and the other 'Under', or better known as a binary call and binary put. Furthermore, if we assume Efficient Market Theory' then at any one time the market has a 50 chance of going up and a 50 chance of going down. But the prices are not offered in a fixed odds format as above, they are offered in a percentage return format so it is necessary to translate this format in to a probability.