BetOnMarkets Stop Bets - 1% question | Forex Factory

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BetOnMarkets Stop Bets - 1% question

  • #1
  • First Post: Aug 21, 2009 1:12pm Aug 21, 2009 1:12pm
Hello,
BetOnMarkets have a bet type called the 'Stop Bets' (Bull or Bear Stop).
It is specified (for a BULL Stop) as:

Quote
I wish to win XX for every 1% RISE in the CurrencyPair
and I wish to be stopped out if the market falls to Price

I am struggling to understand how this 1% is calculated and how it translates to pips.

I have asked their helpdesk and received an example as below:

Quote
Example:

Bull Stop: Win USD50 for every 1% rise in the EUR/British Pound ; stop-loss
level : 0.6493 ; expiry date: (No expiry).

If the current market price of EUR/GBP is 0.6586

Calculation :

The % up = [(new level /stop loss level)-1]*100 = [(0.6586/0.6493)-1]*100
=1.43%

Hence theoretically , the value (resale price) of the bet should be at amount
= 1.43 *USD50 =USD71.5
However , we had charged a resale commission on it , hence , the value would usually lower than USD71.5

I then made a demo bet to test.

Quote
Bet Details
Bear Stop: Win USD250 for every 1% fall in the EUR/USD ; stop-loss
level : 1.4859 ; expiry date: (No expiry).
Pricing Information (EUR/USD)
Current Price1.4327
Market price1.4327 at the time of purchase of the bet

Win USD250 for every 1% fall in the EUR/USD ; stop-loss level : 1.4859
; expiry date: (No expiry).
USD 948.78 (Purchase Price)
USD 842.95 (Current Price)

I cannot get the same figures it shows me on my 'Portfolio' screen as the current value of my bet using the formula above.

Does anyone know how this 1% is calculated and how it relates to pips? Can the difference be all due to these mysterious charges?

Thanks in advance
  • #2
  • Last Post: Aug 26, 2009 1:38pm Aug 26, 2009 1:38pm
Just to give an update on this. When I asked the helpdesk why the formula they give me doesn't work they confirm that the difference is due to the charges. When I asked how these charges are calculated I didn't get a clear response; only something along the lines of 'depends'. Then they told me on the phone that these charges can be up to 6%. Though still not saying how they are calculated.

So, their attitude seems to be 'we will charge whatever we feel like and you are not to know how much it is going to be before you put your bet on'.

I just had to say 'No, thanks'.
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