Fixed-Odds Capital, a company running a fixed-price financial betting website, is to expand and create a more UK-specific service and is hoping to float its business on Aim.
The businesss site offers a range of market indices and foreign exchange bets, as well as a limited number of bets on highly liquid US shares, such as those of Microsoft.
Later this year it will start using its UK gambling license and specifically target UK-oriented investors with a series of bets on UK indices and UK shares.
The site was launched last July and although managing director Piers Allen said it had been developing satisfactorily, he did not reveal how many regular users it had. Gamblers using it come from all around the globe, he said, and it proved particularly popular with Asian investors.
The site would be available in several different languages, including Russian, and it would benefit from increased functionality, relevant content and charting tools. Allen said: «Its not content for contents sake. We want to add in material that is relevant to our users and what they are doing on the site.».
Allen believes the appeal of fixed-odds betting or gambling is that investors have a clearly defined risk, unlike spread betting, which is open-ended.
On the website, investors nominate an amount they would like to win on a certain bet for example, Nasdaqs level in five days time and the site automatically calculates the size of the wager required.
Amounts investors can win range from $10 to $3.000 on single bet, although it is possible to conduct a series of bets around the same index, foreign exchange rate or equity.
Fixed-Odds prices the bets used by professional investors when pricing and trading options. It is based on the likely volatility of a particular option which varies according to the time involved.
Too early to say how attractive it might be at flotation but as a betting site it offers a good complement and alternative to traditional financial spread betting.
05 July 2001
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