The proposition bet, or "prop" bet, is a rising type of gambling that is so simple to learn that is even attracting people not familiar with gambling. It is simply a wager on a Yes or No answer to a question that has two possible answers: Yes or No. In other words, it means betting on the occurence or non-occurrence of an event, which is typically related to a sports match but can be about anything , and the possible events of this type are limitless.
Examples: Will injuries occur during Chelsea vs Liverpool? Will Donald Trump be re-elected? Will the oil price go down to $30 or below before the end of the year? Etc.
Prop bets and their odds can be defined by linemakers, or they can be defined by users themselves if the bookie is a proposition betting exchange like we actually are. We let users create the prop bets, so that the possibile events are infinite and not limited to the few ones proposed by the linemakers on traditional bookies. And the odds also are defined by users, as the winning scheme is Parimutuel, that is a bettor is going to win the amount staked by the other players that chose the opposite answer, and that implies that the bettors themselves are going to change the odds when they place their stakes on one answer. For a better understanding, you can also read our betting tutorials, especially the Parimutuel scheme quick intro. So when there is a higher volume of stakes on one direction, for example on Yes, the potential return for the No bets is higher than on Yes, and vice-versa. When you bet on Yes you raise the potential return of the No bets, but reduce the return for the Yes bets , and vice-versa.
Now, let's talk about an example of how to make an intelligent use of prop bets: profiting from price drops of cryptocurrencies or other financial assets. Take for example the Bitcoin price: it just gained about the +10% in the last 24h, at the time of this writing. Suppose you bought Bitcoin thinking it's in a bull market, but a part of you is worried about it to be just a temporary spike, and that a big drop may occur a few hours or days later, making you lose money despite your stop-loss (which actually is just a way to limit your losses, not to avoid them ). A way to protect yourself from an eventual price drop, or even to profit from it, would be to open a bet event on it and place a bet on Yes, with stake equal to a small part of the investment used for buying Bitcoin. Say between the 5% and 10% of it would be reasonable, so if you bought 500$ worth of Bitcoin when it was valued at $8000 at the beginning of a pump, then you may for example open a bet event on the Bitcoin price to drop to $6000 and place a Yes bet on it with $50 stake.
Why is this supposed to work? During a perceived pump, chances are that many punters choose the opposite answer as yours, that is No, so that if the said price drop happens in the future , your winning would be huge as you are going to win that big money that your opponents wagered. You may even end up gaining more than you lost due to the drop.
Hoping you get inspiration from the concepts and tricks explained on this article, we wish You good luck!