Spread betting is a different type of betting tool to the traditional fixed odds bookmakers or the betting exchanges. The spread betting bookmakers set their quote on where they believe a selection will finish up (e.g. Man Utd Premier League season points: 82-84). Depending on your opinion on this market you can either “Sell” at the low end of the quote, 82, or “Buy” at the high end of the quote, 84. By “Selling” at 82 you will lose x times your unit stake for every point that Man Utd finish above the 82 or you will win x times your stake for every point that Man Utd finish below the 82 points. “Buying” at 84 works the opposite way as you will win x times your unit stake for every point that Man Utd finish above the 84 or you will lose x times your stake for every point that Man Utd finish below the 84 points.
Basically spread betting works on the premise that the more the customer is right the more he/she will win but on the flip side the more the customer is wrong the more he/she will lose. Depending on the type of market this can result in profits and losses escalating very quickly. The customer must always be aware that it is possible to lose more than their original stake. The customer must familiarise themselves with the worst case scenario result to calculate their maximum possible losses before they have a bet to ensure that they aren’t putting themselves in a position to possibly lose an amount they cannot afford to lose. To calculate this properly you must familiarise yourself with the “Stop Loss Rules” of each spread betting company which sets a maximum profit/loss on each market.
Types of Spread Bets
Spread Betting offers many different types of bets. “Win Index” is like match betting where they award a certain amount of points for winning, drawing or losing. Supremacy betting gives higher profits and losses depending on how much your selection win or lose by. Spreads companies offer many totals markets including total corners, bookings and goals in soccer, total games or points in tennis, total runs in cricket or total points in GAA and rugby. These markets tend to be more volatile than the traditional match betting markets so caution is advised before proceeding to have your bet. Spread betting can offer an alternative to trading on the stock exchange by offering certain financial quotes.
Another alternative type of Spread Betting is Binary Betting. This offers a quote between 0 and 100 based on the percentage chance of the event occurring. These markets are settled at 100 if the event occurs or settled at 0 if the event doesn’t occur. Again it is important to be aware of your total winnings or losses before placing your stake.