10/13/2006 - Please note that this article is out-dated. Binexx is looking much nicer than its first incarnation and has now been integrated into City Index
Binexx is a newcomer to the exchange business, specialising in financial markets. Trading 24 hours a day, Monday to Friday only, but expects to offer markets on major sporting events and politics in the future. Debit card deposits only.
Binnex allows punters to offer odds to each other using the 0-100 binary system on short-term movements in the FTSE 100, S&P, Dax and Dow Jones indices, foreign exchange and big stocks such as Vodafone, BP, Shell and Glaxo.
The system is not overseen by the Financial Services Authority but City Index's Martin Slaney said it would co-operate with the regulator. He believes the Chancellor's threat to tax betting exchanges and/or clients was aimed more at the sporting markets. The technology behind binexx comes from TradingSports, which supplies several sports betting exchanges.
You need to register for an account before entering Binnex. It worked fine for me too. The download takes a while the first time you use it but then it's very quick. Overall I like the actual platform - easy to use overall. I just want to see some more markets; a reply to an email I sent yesterday promises lots more very soon.
Here, you are betting on the % chance of an event happening, like Footsie to close up. A Buy is same as backing it to happen, a Sell is same as laying it, or backing it not to happen. Max make-up is 100, minimum is zero. Very volatile prices but great fun if you get it right! Also find it handy to have the live change on day of the actual market there.
I used it a couple of times, but the liquidity just isn't there. All the bids and offers seem to be automated, and I guess they're posted by City Index. I just wish they'd have more balls and post in decent size, rather than £3 per point. I went back to a combination of betfair (where all the liquidity is if you want genuine P2P dealing) and binarybet.com (where you deal with a market maker, but with tighter spreads than binexx and zero commision).
All binexx.com markets are yes/no propositions, with 100 points awarded for `yes' and 0 for `no'. For example: will the FTSE finish up? The players on binexx could pitch the market at 49-51, ie would-be `yes' backers are looking to buy at 49, would-be `no' backers are looking to sell at 51.
If you bet `yes', buying at 51 for pounds 5, you could win pounds 5x49 were the FTSE to finish up (make-up 100); you would lose pounds 5x51 were the FTSE to finish down. (make-up 0). In either case you will pay commission of 50 per cent of your stake-per-point, i.e. pounds 2.50.
The terminology and design reflects the City-bias in markets, and presumably target customers; regular sports exchange players must adapt, or not bother.
The launch of Binexx is no bad thing, but my overriding concern when I get into a position is where am I going to get out and sometimes on the p2p exchanges, you can't. Still, if you do make use of binaries, increased competition has to be a good thing.
Imo, binary/fixed odds bets in general, are a reasonably cost effective way of trading volatility. Having said that, you will find that everybody has more or less wised up now on the exchanges and it's getting harder to get a decent volatility based strategy on prior to non farm payrolls etc. I have to say, call IG all you like, but at least they are always there to take the other side of your trade (in theory...
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If you trade price, i.e. direction, then (imo) binaries are a waste of time (unless you use them intelligently as a hedge against another position). It's all too easy to get shaken out of reasonable positions. It's also easy to bloody mindedly stay with with positions that you wish you'd got out of and then find that you can't.
Above all don't labour under the mis-apprehension that the exchanges are full of "punters" who will be easy pickings, or that they are better simply because you will never get an order refused. These days they are frequented by some pretty smart cookies who know every floor based trading trick going. You will get spoofed, dimed, squeezed, etc, many, many times.
Announcement - Binexx Platform integrated into City Index Main Site
We would like to inform you of the developments concerning Binexx.com. From 16 January 2006, City Index Ltd. (owners of Binexx.com) will be closing the Binexx.com website for betting and redirecting the binary product through the City Index platform. City index will be the sole Market Maker and there will no longer be an exchange basis of betting.
As you have a City Index Spread Betting account, if you wish to continue betting on binary markets you simply need to log into your City Index account online and select 'Binary Markets' from the 'Live Trading' tab. You should ensure that you have read and understood the new City Index Terms and Conditions, Term 16 of which relates to binary betting. Please note that even though City Index is authorised and regulated by the Financial Services Authority, the binary products are deemed to fall outside of the regulatory framework.
If you would like to transfer your Binexx available funds to your City Index account, please reply to this email instructing us to transfer the funds, and we shall do this for you.
If you do not wish to transfer your funds to your City Index account, the Binexx site will remain open for you to withdraw them back to your bank account. If you have any questions regarding binary betting with City Index, please do not hesitate to contact us.
Telephone: 0207 550 8580
Email: enquiriesATcityindex.co.uk
We wish you the best of luck with your binary betting,
Yours faithfully,
Client Services
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