If you want to place a bet on the Brexit vote here are three ways to make it interesting…
Basically there are three different ways you can bet on Brexit:
1. A straight in or out vote
2. A spread bet on the brexit vote outcome
3. Bet on the devaluation of GBP
Here is a little more information on each political betting option and how to go about getting set up to bet on the brexit.
1. An in or out bet on the brexit
Pretty much any bookie out there will give you odds on the outcome of the UK BREXIT REFERENDUM so if you are going to place a normal bet make sure you get the best odds by going with a betting exchange.
Smarkets betting exchange currently offer the best odds and lowest commission (2% versus 5% from Betfair). At the time of writing their odds are 1.28 In favour of staying in EU (versus 1.20 on William Hill) and 4.4 In favour of leaving EU (versus 4.33 on William Hill). You also get a £10 free bet when you sign up.
2. Spread betting on the UK BREXIT REFERENDUM
Sporting Index are making some pretty good markets on the Brexit vote including:
Brexit Binary 100 Index
Brexit Turnout Percentage
Brexit Vote Share: Remain
Brexit Vote Share: Leave
Brexit Regional 100 Index: Scotland
Brexit Regional 100 Index: Wales
Brexit Regional 100 Index: Northern Ireland
Brexit Regional 100 Index: England
When you spread bet you are basically trading a market via a price quoted by a sports spread betting bookie and can job in and out live. Your winnings or losses depend on how right or wrong you are. Sporting Index also give you £100 in your account when you sign up.
3. Betting on how the price of GBP on the EU Referendum outcome
Betting on foreign exchange is big business and there are loads of excellent and highly regulated Forex brokers in the UK. It makes sense to use a spread betting broker that offers Forex trading as this means that your winnings on trades are tax free (not subject to capital gains tax).
In the (going by the odds) unlikely event that the vote is to leave the EU then Sterling will be devalued and the price will drop.
Of course if you don’t want to speculate on how currencies will be effected by the Brexit and want to lock in an exchange rate before hand you can use a currency forward (but that’s not betting it’s protection).