Stock Wagering Returns*

Those engaging in betting on the relative price movement of stocks, through our proprietary standardized unit approach, risk either a total loss of the amount bet, or the receipt of outstanding returns. There is no other result possible.

The standard betting unit is $200, and the win is $380. The standard period of the bet is 30, 90, or 180 days. For each betting unit there will be a winner and a loser.  The loser will lose 100% of the $200 bet and the winner will receive $380 for the $200 bet made

If the bet is for 30 days, the winner’s $380 is a 90% profit or an 2,180% internal Rate of Return (IRR). If the bettering period is 90 days, the $380 is a 90% profit or an 660% IRR. If the betting period is 180 days, the $380 win is a 90% profit or an 280% IRR. In all cases the loser would have a 100% loss.

The profit of 90% is the same for all periods, and the IRR is greater for the shorter periods than the longer period.

The bet can be “even money”, which of the 2 stocks or stock market indexes does relatively better, between the last published price, on the day the bet was made, versus the last sale on the day the betting period ended, or a percentage of the price change by one of the bet components. The bet could be the price change for AMZN versus 150% or 200% of the price change of the SP500.

Those betting, using the virtual platform, will negotiate the terms of the wager as to the betting period and percentage of price change. Any of the stocks included in the SP500 may be used as bet components, as well as the SP500 itself. Dividends and other possible distributions, reflected in the price of the components, will be credited in the determination of the winning bet.

Therefore, it is possible that those bettors having the skill and good fortune of timing will be able to generate outstanding annual returns from relative price change wagering. It is also expected that the entity making the arrangements for the counterparties and providing the assured winner returns will be well compensated.

 

 

Arthur Lipper, Chairman
British Far East Holdings Ltd.
14911 Caminito Ladera,
Del Mar, CA 92014
+1 858 793 7100
arthurlipper@gmail.com

 

*©Copyright 2021 British Far East Holdings Ltd. All rights reserved.

 

 

 

 

 

 

Blog Management: Viktor Filiba

 

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