the ‘3 by 3’

Everything You Need In Three Slides.

But First...

Flexihedge is a betting exchange focused solely on financial markets.

Betting is in GBP (pound sterling) only. The exchange is open 24/7.

Flexihedge is licensed and regulated in the UK by the Gambling Commission.

Player deposits are held in a segregated player funds bank account by an independently administered third party corporate trust. This achieves the best player funds protection rating possible from the Gambling Commission: High.

To register with us you must be at least 18 years old and based in the UK.

Bet - 3 Steps

Select Market

Select Grid Cell

Select Bet

1

2

3

The Exchange - 3 Elements

1. Peer-To-Peer

You set the odds. It's a market. Take the going odds or make an offer.

2. Decimal Odds

Single number that includes the unit stake. Easier than fractions.

3. Backing & Laying

Backing: betting it will happen; Laying: betting it won't happen.

The Grid - 3 Features

1. Bet Expiry Dates (‘Expiries’) run horizontally

Date the market closing value will be used to settle the bet.

2. Price Levels (‘Strikes’) run vertically

Levels you can bet the market price will close above or below.

3. Single Asset vs Multi Asset view

Single Asset: one market/ all expiries; Multi Asset: 5 markets/ one expiry.

Additional Help & Info

Flexihedge in a nutshell

Flexihedge vs Spread Betting/ CFDs

The Three Features Of A Betting Exchange

Understanding Our User Interface

Understanding The Order Book

Further information and contact us

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Flexihedge in a nutshell

You can back as well as lay odds across a pre-set range of:

1. Markets.

2. Price Levels (or 'Strikes').

3. Bet Expiry Dates (or 'Expiries').

Expiry Dates are daily, from Monday to Friday this week, and Friday next week.

Expiry Dates correspond to daily closing values.

Flexihedge vs spread betting/ CFDs

82% of spread betting and CFD customers lose money (source: FCA).

The brokers set the price and the leverage wipes you out.

Flexihedge is the only low risk, in-control way to bet on financial markets.

Yes, of course you can lose a bet. This is not why we are low risk.

We are low risk because we offer fixed odds betting on financial markets.

No leverage is involved.

Why Flexihedge? Less risk. More control.

Fixed odds are much less risky than leverage.

Why?

With fixed odds your potential maximum loss is known in advance.

So you can’t be ‘stopped out’ or ‘wiped out’ by intraday price volatility.

And losses can’t exceed deposits.

Unlike with spread betting CFD sites. Look at their standard risk warning.

Why Flexihedge? Less risk. More control.

How do we offer more control?

1. You set the odds. It is peer-to peer. You bet on your own terms.

With spread betting and CFDs you are betting against the house at their price.

2. You can position beyond the intraday time horizon at future dates.

Whatever happens between now and then won't affect your bet. At all.

3. You are not tied to the spot price. You can bet on either side.

The 3 features of a betting exchange

1. Peer-to-Peer

2. Decimal odds

3. Backing & Laying

1. Peer-to-Peer

A betting exchange is a peer-to-peer betting platform.

You set the odds. It's a marketplace.

Take the going odds or make an offer.

When you bet, you are betting against other users of the exchange.

Flexihedge is not a bookmaker and does not fix the odds.

(continued)

This means 2 things:

1. You can bet now at the best odds currently offered on the exchange.

⇒ your bet will be matched instantly.

2. Or, you can offer your own odds.

⇒ your bet will be unmatched and will enter the exchange order queue.

The more competitive the odds you offer, the higher in the queue they will rise.

2. Decimal odds

Odds are decimal format on a betting exchange. Decimal odds are a single number that includes the unit stake.

Fractional odds present the net win and unit stake separately, side by side. E.g. Decimal odds of 3.00 are equivalent to fractional odds of 2/1.

Decimal odds are standard practice on a betting exchange because single numbers are easier to use and compare.

(continued)

For decimal odds:

The gross return multiple is simply the decimal figure.

The net win multiple is simply ‘decimal odds - 1’

e.g. you back £10 at decimal odds of 10.0. If you win:

the gross return will be £100 =(10*10)

and the net win, i.e. exc the stake, will be £90 =(10-1) *10

3. Backing and laying

Backing: betting it will happen.

⇒ you just risk your stake.

Backing is the traditional role of the ‘punter’.

Laying: betting it won’t happen.

⇒ you risk paying out at the odds.

Laying is the traditional role of the ‘bookmaker’.

(continued)

Note:

As laying a bet risks paying out, it is a more capital intensive betting strategy.

Quid pro quo:

Higher odds generally indicate a greater probability that the layer will win; that is the trade off.

Summary

1. Peer-to-peer

⇒ odds are user determined. You set the odds. It’s a market.

2. Decimal odds

⇒ single number that includes the unit stake. Easier to use than fractions.

3. Backing & laying

⇒ backing means betting it will happen; laying means betting it won't happen.

Understanding Our User Interface

Flexihedge has devised a unique user interface for betting on financial markets in a peer-to-peer exchange setting.

This is called the grid.

The grid has been designed to help you navigate as quickly as possible.

The grid is your friend.

The ‘grid’

Bet Expiry Dates (or ‘Expiries’) run horizontally.

Price Levels (or ‘Strikes’) run vertically.

Note:

Bet Expiry Dates and Price Levels are pre-set and managed by the exchange.

The Odds grid displays the best odds currently offered in the market.

The Liquidity grid displays the total money currently staked at those odds.

Bet Expiry Dates (or ‘Expiries’)

The Bet Expiry Date:

⇒ the date the market closing value will be used to settle the bet.

These dates are uniform across the exchange.

There are six standard Bet Expiry Dates:

Monday to Friday this week, and Friday next week.

Bet Expiry Dates run horizontally.

Bet Expiry Dates (or ‘Expiries’)

e.g. ‘Monday 2 January’.

if you are betting on Apple’s share price in the ‘Monday 2 January’ Bet Expiry Date.

⇒ then you are betting on what closing price of Apple will be on ‘Monday 2 January’.

It’s that simple.

Price Levels (or ‘Strikes’)

Price Levels:

⇒ the levels you can bet the market closing value will be above or below (on the Bet Expiry Date).

Strikes will vary from market to market.

Price Levels (or ‘Strikes’)

There are 2 strike ranges:

The first strike range is for the 2 Friday's coming (this Fri and next Fri).

The second strike range is for Mon - Thurs coming.

Price Levels (or ‘Strikes’)

Reason for separation:

There is likely to be more price variation in the underlying market over 1 - 2 weeks, than 1 - 4 days.

To account for this, the range of variation is wider in the first strike column.

Single Asset grid vs Multi Asset grid

In each case - Odds & Liquidity - there are 2 styles of grid:

1. The Single Asset grid

2. The Multi Asset grid

Single Asset grid

1. The Single Asset grid

The Single Asset grid enables you to view all expiry dates simultaneously for any one market.

If you’re watching just one market e.g. Apple, then the Single Asset grid will probably be more helpful to you.

⇒ it will provide the full picture on the exchange in a single screen view.

Multi Asset grid

2. The Multi Asset grid

The Multi Asset grid enables you to view up to 5 markets simultaneously but for each market, only one expiry date at a time.

If you’re watching multiple markets simultaneously, then you may find our Multi Asset grid more helpful.

⇒ it saves you navigating back and forth each time.

Understanding The Order Book

The exchange order book is the engine that powers any betting exchange.

It prioritises the most competitive odds offered in the market.

If you are laying:

⇒ offering higher odds moves you closer to the front the order queue.

If you are backing:

⇒ offering lower odds moves you closer to the front the order queue.

The order queues meet in the middle

All betting exchange order books are split into 2 queues that meet in the middle:

The Laying order queue - Left Hand Side.

The Backing order queue - Right Hand Side.

Like so:

Laying order queue ⇒ | ⇐ Backing order queue

The intersection is the front of both queues

The intersection in the middle where they meet is the front of both order queues.

This is where bets are matched if the odds are the same.

The further you move away from the middle, the further you are from the front of the order queue.

Order book illustration

Laying order queue Backing order queue

Front of both order queues= best odds in the market (or ‘market odds’)

Bets match if odds are equal

Lower odds Higher odds Lower odds Higher odds

‘Back Now’ odds (front of laying order queue)

By betting exchange convention:

The odds at the front of the Laying Order Queue.

⇒ are called the ‘Back Now’ odds.

Why?

Because if you want to back a bet right now, these are the best odds available in the market to do so.

‘Lay Now’ odds (front of backing order queue) The odds at the front of the Backing Order Queue.

⇒ are called the ‘Lay Now’ odds.

Why?

Because if you want to lay a bet right now, these are the best odds available in the market to do so.

Summary

The laying order queue (LHS) and backing order queue (RHS) meet in the middle.

The middle is the front of each queue, where the odds are most competitive.

As we move away from the middle, the odds become less competitive.

The more competitive you make your odds, the closer to the front of the order queue you will move, and the higher chance you have of being matched.

It's a marketplace.

Further information and contact us

See our other web tutorials.

Check the ‘Further Info’ section of the website (Menu button top left of screen).

Contact us anytime by phone, live web chat or email:

Phone: +44 (0) 20 3781 8023

Live web chat: www.flexihedge.com

Email: via the ‘Contact Us’ section of the website