With spread betting, the potential exists to see far greater returns on your stakes when you call it right, but also, it has to be factored in that the losses increase based on how inaccurate your bet turns out to be. In its simplest form: the ‘more wrong’ you are with any given bet, the more you stand to lose.
As such, you should be familiar with spread betting rules before you dip your toes into this particular water. Use a spread betting calculator to ensure you know exactly how much you are liable to lose, as well as how much you stand to win.
SPREAD BETTING EXPLAINED
In the financial world, spread bets involve predicting how much a given stock price may rise or fall during a period of trading. The wins or losses are dictated by the closing price of the stated share and what you have predicted.
In sports spread betting, you are more likely to be predicting how many goals/points will be scored in a given match, how many red/yellow cards will be issued in a soccer game or how many points a team will accumulate over a season.
Based on your opinion, you elect to buy or sell if you feel the spread is likely to come in over or under the benchmark that has been set.
Spread Betting Examples
Overs and unders is often one type of spread betting market that is available on sporting events. For instance, in an NBA basketball game, the total points spread might be set at 156-160 (the combined total to be scored by both teams in the game).
On the other hand, if you had bought this spread bet at 160, you would be wrong by ten points. In this case, you would lose ten times the initial stake you placed.
Similarly, if the total points in the game turned out to be 170, you would lose 14 times your initial stake had you decided to sell at
Had you bought the spread on total points in this game at 160, a 170-point game would result in a ten-point spread bet win
and so you would gain a ten-fold return on the initial stake.
Popular Spread bets
If you sell in this market, you are predicting that there will be few cards issued. For example, if there were three yellow cards and zero red cards, that would mean only 30 points. In this instance your spread bet wins
and so you would win two times the initial stake.
If there were 2 red cards (60 points) and three yellow cards (30 points) in the game that would equal 90 points. Having sold at 50 points, your spread bet is now a loser by 40 points, meaning you would lose four times your initial stake.