What is City Punter?

The ‘house’ is using an auto-hedge mechanism which skews the prices of the options so that the ‘house’ hedges its book.

For example, if Trader A buys the UNDER the house will automatically lower the return of the UNDER and increase the return of the OVER.

It is quite feasible that the return for the OVER may exceed a 100% return. This is known as a ‘Value’ trade as in an efficient market would always suggest there is a 50:50 chance of the bet being higher or lower.

This is akin to tossing a coin and betting $1 on ‘heads’ or on a roulette wheel (with no ‘0’ or ‘00’) betting $1 on black while on both occasions, on winning, getting a return of $1.05.

On entering a trade the trader always is provided with a bid from the ‘broker’ so that the trader can exit their position. This is because the ‘broker’ is also performing the function of market-maker.

The broker is constantly calculating all individual trades expected return thereby enabling the broker to generate the price at which the broker would trade.

On closing out the trade the broker’s position and hence exposure now changes. The very act of a trader closing out will likely change the prices the broker offers for that FX pair or Gold.

The trader can deposit money with the broker enabling the trader to enter trades on City Punter. But the depositor can also allot all or part of the deposit with the Bankroll.

On doing this the depositor can participate in the share-out of the profits and losses on a daily pro-rata basis.

The profit is subsequently shared with the technology provider, the affiliate, and then the depositor and broker.

Exact percentage cuts are yet to be determined.