British online trading, CFD and spread betting company CMC Markets has announced its launch of a new limited risk product called Countdowns.
Countdowns are fixed-odds trades based on whether the mid-price of a market will be above or below the current Countdown price at the end of a range of short-term timeframes.
How do Countdowns work?
There are four simple steps involved in placing a Countdowns trade:
1) Choose your market
Select the market (e.g EUR/USD) and timeframe (30 seconds to one hour) over which you want to trade
2) Choose your stake size
Enter the amount you are willing to risk on your Countdown trade, starting at £20
3) Above or below?
Decide whether you think the price will be higher or lower at the end of your chosen timeframe
4) Place your trade
Select ‘Above’ or ‘Below’ to open your Countdown position
What markets are offered?
Markets are offered across 21 of our most popular markets including indices, FX and commodities.
What are the costs associated?
Clients can stake £20 upwards on any given Countdown. Clients receive a pay-out of anything between 70% – 85% if they win. For example, if a client bet £100 and won (with the win percentage being 85%), they’d receive £185 (the £100 initial stake plus the £85 winnings). If a client lost he/she would lose the £100 initial stake.
Why is CMC Markets launching Countdowns?
CMC Markets’ has launched its Countdown product offering in direct response to client feedback. Countdowns are the first of the company’s volatility based products with full binaries due to be introduced later in the year.
Target clients
Countdowns present a straight forward, fast and exciting way to trade with limited risk, relative to spread betting or trading CFDs, on the short-term price movements of the financial markets that will appeal to existing spread bet and CFD clients as well as new traders.
In order to open an account, potential clients must successfully pass CMC Markets’ usual application process, designed to meet the FCA’s standards for our Spread bet and CFD product offering.
This process requires traders to provide information on income, net worth and trading experience before opening an account. This standard is not mandatory for our Countdowns offering, with Countdowns being regulated by the Gambling Commission instead of the FCA,
Commenting on the launch, Ryan ODoherty, said: “CMC Markets is always looking for innovative ways to meet the evolving demands of its active trader client base and has a strong pipeline of product initiatives in development. Our new Countdowns product provides the opportunity to place trades even during quiet flat markets and as such represent an attractive complement to our other trading strategies. Enhancing our award-winning Next Generation platform and combined with our market leading education, competitive spreads and cash rebates, we believe we are offering traders the complete package.”