Some punters look set to treble their money thanks to the so-called ‘flash crash’ the that saw the British pound shed 6% in Friday’s early hours.
Sterling’s nose-dive to a low of US$1.1841 during Asia’s trading session remains surrounded in some mystery, though reports suggest a ‘fat finger’ trading mistake and the activation of automated sell orders combined to create the ‘flash crash’.
It sets up a bumper payday for customers of betway which is running a book around the pound’s current demise.
Earlier this week the online bookie betway had made a price of 3/1 for Sterling to mark its low for 2016 between US$1.1 and US$1.19, though the price had narrowed in to 6/4 by Thursday.
“Don’t count your winnings just yet,” cautioned Alan Alger, PR man at betway, who highlights the possibility for more volatility to come.
He added: “With just under 3 months to go until the end of 2016, there’s likely to be plenty of twists and turns.”
Betway on Thursday moved to 5/1 for the pound to see lows between US$1-1.09 before the year’s end – that would see the currency near or even below historic lows.
Most pessimistic punters could, meanwhile, get 50/1 for the pound to actually end up weaker than the dollar.
The online bookie will settle bets at the end of the year, unless Sterling falls below US$1 before then.
Story by ProactiveInvestors