www.intrade.com. This is an online gambling site which will allow you to bet on a variety of things but it works like the stock market whereby you can go long or short and trade intraday whereas if you go to a bookie and make a sports wager for example, you either win or lose when the game is over.
intrade.com has what's called "financial contracts" which provide a variety of different ways to speculate on the Dow Jones. I focus only on the Dow Jones daily close contracts which allows you to bet on where you think the Dow Jones will close for the day.
For example, the DOW +25 contract will payout if the Dow closes up 25 points or more. You can go long or short any contract and there's a market maker that provides liquidity along with market depth to see all outstanding orders. The contracts (i.e. the event you are betting on) are what's called binary options - you either win or lose if you hold them to expiry. Every contract will expire at either $10 (for a win) or $0 (for a loss).
For example, if you went long 10 contracts of the DOW +25 and the Dow closes at +40
you would get paid out $100 (10 contracts x $10) if you held until the close. You could always sell them intraday if you wish at the going price. The going price will depend on where the Dow is at the time. If for example, there's 10 minutes left in the trading day and the Dow is at +35, the going price for the Dow +25 contract will likely be about $7.5 (the quote by the market maker will actually show 75).
These contracts offered by intrade which I just described are 1-day binary options.
They provide a unique risk/reward tradeoff which if properly used can act as an effective weapon to the speculator's arsenal.
It can also just be used as a cheap way to speculate on the market or experiment with ideas on an intraday basis. It can also be used as a cheap way to test and sharper your instincts.
I must warn you however. There's not that much difference, if any, between gambling and trading these contracts. USE ONLY A VERY TINY AMOUNT OF CAPTIAL if you want to try these things out....no matter how good you may do initially....because it might be just pure luck.
I believe the most you can start off with is $250 as an initial deposit amount from your credit card...and depending on where you live and what credit card you use, you may not even be able to deposit money from it because of online gambling site laws/restrictions that are applicable to you.
And please, please, please don't blame me if you decide to trade intrade contracts and lose money. Don't be like all the burned shorts who are blaming Goldman Sachs for their loses. Use the site at your own risk and take responsibility for your actions.
I should also mention that I'm not affiliated with intrade nor compensated by them in any way.
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