Spread Betting is an unfixed bet type that allows the punter to predict an outcome of a match or event and back their judgment against the ‘spread’ quoted by the sports spread betting company.
The ‘spread’ is a scoring range created by the firm on a specific event or match and if punters believe this spread is too high or too low,they can sell or buy accordingly –like on the stock market.
The main advantage from spread betting is that there is a potential for very large wins from small stakes. On the flip side their is also the potential of high losses.
Also,with spread betting you can back on an individual or team doing badly compared to normal fixed outs betting where you back them to win.
Once you have opened an account,bets can be placed in seconds either online or over the telephone.
You can also close your spreadbets when you like,which means that as soon as you are in profit you can take your money and run before the event is over.
Similarly,you can minimise your risk with a stop win/loss when placing you wager.
You also don’t need to tie your money in the bet unlike what happens in fixed odds betting where you place your bet and wait for the event to finish. With spread betting there is no need to pay for the money upfront as bets are settled when the market is over .
Another plus is that unlike with conventional bookmakers,winning accounts are not closed. The spread firms make their money on the spread – the difference in price between what you can buy at and what you can sell at –just like the bid and offer prices of a stockbroker for a share.
So the main question I can hear you asking is how does it Work and is it Complicated?
Well spread betting is sometimes seen as the thinking man’s bet,for the serious punter as mathematics plays a key role in analyzing outcomes.
But don’t let that put you off as it’s not as complicated as you think. It’s simply a game of ‘higher’ or ‘lower’. The spread betting company will give you a market,followed by two numbers,and you decide which way you want to play.
In essence,a punter places a bet that the difference in the score between two teams will be less than or greater than the bookies spread. A bettor can either bet that the score for the underdog plus the spread exceeds the favorite or that the favorite’s score minus the spread is greater than the underdog’s score.
For example,you want a bet on the football,and the following spreads are offered for the derby clash between Manchester United and Manchester City:
(Bet Type –spread quote)
Supremacy Manchester United/City 0.4 – 0.6
Total Goals Manchester United/City 2.7 – 2.9
Total Corners Manchester United/City 11.5 – 12
Bookings Manchester United/City
If you believe that Manchester Utd will beat City,then you would ‘buy’ at 0.6. Should Manchester Utd win by one clear goal (1-0,2-1,3-2 etc),you would win 0.4 (1-0.6) times your original stake.
For every goal more than one they win by,you would win your original stake again. However should the game result in a draw or Tottenham win,you would lose 0.6 + 1 for every goal that City win by. So let’s say you lay a £100 ‘buy’ at 0.6 on Manchester United,the profit/loss table would look like this:
Result of 1-0 to Manchester United = £40.00 Profit
Result of 2-0 to Manchester United = £160.00 Profit
Result of 3-0 to Manchester United = £260.00 Profit
Result of 0-0 to Manchester United = £60.00 Loss
Result of 1-1 to Manchester United = £60.00 Loss
Result of 2-2 to Manchester United = £60.00 Loss
Result of 1-0 to City = £160.00 Loss
Result of 2-0 to City = £260.00 Loss
Result of 3-0 to City = £360.00 Loss
So as you can see it’s not as complicated as it first seems,and spread betting companies offer a huge range of markets on all sports.