Spread Betting Explained

Spread betting is a way to make sports betting more enjoyable, and give you more betting options. Spread betting offers the chance for people who know their favourite sport well to win a lot of money, but can also carry a high level of risk for gamblers.

Spread betting is different from a normal bet in that you are not betting on a single specific outcome. You are betting that something will happen before or after a set time, or that a score will be higher or lower than a set number. If you think that the spread offered by the bookmaker is correct, you do not bet.

An example of a spread bet could be:

In a football match, it is believed that the first goal will be scored on the 25th minute. The bookmaker sets the spread at 24-26 minutes. Gamblers can then place bets for either end of the spread.

If you place $10 on the 24th minute, you will win if the first goal is scored before the 24th minute, and lose if it is scored after then. The amount you win or lose is determined by the time difference between your bet and the time the goal was scored, multiplied by the amount of your bet.

For example:

• The goal is scored at 28 minutes. You lose ((28-24)*10)=40 the amount you lose is $40
• The goal is scored at 15 minutes. You win (24-15)*10)=90 the amount you win is $90

Another popular form of spread betting is related to the difference in score between two teams in a match. The bookmaker sets a spread, and you then choose to bet on either the favourite or the underdog.

Betting on the underdog is known as 'taking the points' - you win if the underdog's score, plus the spread, is greater than the favourites score.

Betting on the favourite is called 'giving the points' and you will win if the favourites score, minus the spread, is greater than the underdog's score.

Many sports betting companies that offer spread betting will use fractions when offering spreads - for example they may say 'the total number of goals scored in the match will be between 2.1 and 2.8' - pay attention to these fractions, as they will be used in the calculation to determine how much you win or lose.

On some spread betting accounts, there is no limit to the amount that you may win, or lose. This can be attractive, and very exciting, if you can afford the potential loses. However, if you prefer to be in control of your budget, and want the security of knowing exactly how much you are risking at any one time, then many companies offer 'stop win / loss' account. With this kind of account, every bet you place has a limit on the maximum amount you can win or lose. An account of this kind is advisable at first, until you are comfortable with how spread betting works.