What are Static Odds Bets?

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As the name implies, Static Odds Bets involve a form of wagering where the odds are “static” and do not change. The term is most commonly used in conjunction with Financial Markets Betting, especially those wagers made at fixed odds as opposed to spread betting.

At both PartyBets and Ladbrokes, for example, a number of financial bets are available on various markets, including stocks (UK 100 index and US 30 index), foreign currency exchange rates (Forex) and commodity markets (Gold, Silver, Crude Oil, etc.). For each market, three different financial bet types are offered: Moving Odds, Range Odds and Static Odds. The latter involves odds that remain fixed, even though the market levels are constantly changing.

With Static markets, the bettor wins when he or she correctly predicts that the market’s settlement level is above or below the market level at the time the bet is placed. When the market’s settlement level is exactly the same as the level at the time the wager was made, the bet is treated as a Dead-Heat. Half the stake is treated as a losing stake and the other half is paid out at the odds that were chosen at bet placement.

Static Odds Bets can be applied to four different (moving) market levels. During a chosen betting period, four lines are quoted. The first of these, the “mid line,” represents the current price level. A Static Odds Bet can be placed on whether the closing price at the end of the interval will be above or below this line at fixed odds of 5/6.

Take, for example, a “daily” wager on the UK 100. The betting period will expire at 4:30pm on the same business day the wager is made. At the time the bet is placed, the market level might be 4636.3. A correct bet of £30 on the market ending higher than 4636.3 will win 5/6 or £25, just as a successful wager on the market closing lower that 4636.3 would also pay £25 on a £30 bet. An unsuccessful bet would lose the full £30.

Two other common Static Odds Bets on market levels are based on the “high line” and the “low line” appearing on either side of the mid line. It is possible to wager up or down on either of these. For the low line fixed at 4614.9, a Static Odds Bet can be made that the closing price will not fall as low as this line at odds of 1/20 or that it will fall lower than this line at odds of 5/1. Similarly, for the high line fixed at 4658.2, a successful bet that the ending price will not reach that high would pay 1/20, while a correct bet that it will exceed that level would pay 5/1.

Note that the distance of the high line and low line compared to the mid line will be moving constantly throughout the trading day, but the odds offered will always be the same (static). How wide the gaps are between the lines will depend on two factors: first, the odds associated with each line and, second, the time left to expiry of that particular market. Typically, the closer to the closing time, the narrower the margin will be.

The fourth market-level Static Odds Betting option is called the “mid line market spread.” It appears as a range extending from several points below the mid line to several points above it, such as 4633.3 to 4639.3 A Static Odds Bet can be placed at Evens (1/1 odds) that the closing price will be higher than this range or lower than this range. Should the ending price fall within the range, the wager is lost.

In most cases, the mid line spread offers slightly better odds than the standard mid line market. That’s because the actual market price must experience greater change in order for the Static Odds Bet to win. Bettors will want to watch the market lines move throughout the duration of the betting interval. As they fluctuate, levels may be more or less favourable and “hedge bets” can be made if the original wager seems at risk.

Published on: 14/09/2012

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