to Spread Betting
with fixed odds betting you’re betting on a final
result, with spread betting you’re betting on
the margin of victory. A spread price works more like
share prices, in that the price will fluctuate throughout
the event and you can choose buy or sell.
example, rather than betting on Chelsea to win the premiership
you bet on the number of points they will get. The price
might be 88 points. If you think they will get more
you ‘buy’ Chelsea points. If you think they
will get less then you ‘sell’ Chelsea points.
You will then win or lose the difference between the
price you bought/sold at and their final points total,
multiplied by your stake.
share prices, the buy and sell prices won’t be
exactly the same. If the real price is 88, those buying
will buy at 89 and those selling at 87. The price will
be shown as Chelsea season points 87-89. The spread
between 87-89 is know as ‘the margin’.
expect Tottenham to do well this season. Their season
points price is 57.5-59 so you buy at 59 for £20
a point. If, at the end of the season Tottenham finish
on 70 points, you win (70-59) x £20 giving a profit
you expected them to do badly you’d sell at 57.5.
So if they finished on 70 points you’d have a
loss of (70 - 57.5) x £20 giving a loss of £250.
That’s an example of a long term bet but you can
spread bet on individual matches too.
/ Man City 0.9 - 1.1
are playing Manchester City. Arsenal are favourites
and expected to win by between 0.9 and 1.1 goals. If
you want to back Arsenal you will buy at 1.1. If you
want to back Man City, you will sell at 0.9.
Arsenal win by 3 goals:
profit to a buyer would be 1.9 (3 - 1.1) x the stake
The loss to a seller would be 2.1 (3 - 0.9) x the stake
Man City win by one goal
loss to a buyer would be 2.1 (1 + 1.1) x the stake
The profit to a seller would be 1.9 (1 + 0.9) x the
predicted margin of victory on a bet like this is known
as the ‘supremacy’.
As shown in the above example a quote isn’t always
a whole number. In match bets the quote if often a fraction.
For example a fraction of a goal for a football match
or fraction of a shot for a golf match bet.
difference between spread betting and fixed odds betting
is the greater opportunity to bet ‘in-running’.
During the course of an event the price will change
many times, particularly during a long term competition
like the football season. This gives the opportunity
to take profits and cut loses on existing bets.
the earlier example of buying Tottenham season points
at 59 for £20 a point, if Tottenham started the
season well their points spread would rise. Say after
a few weeks it had moved to 62.5-64, you could "Close"
the bet and take a profit.
Your initial bet was a buy at £20 a point at 59.
By closing the bet, you are effectively selling at 62.5,
talking a profit of the difference between your two
bets (62.5-59) x £20 giving a profit of £70.
1 buy at 59 for £20, final result example 70 points,
profit of £220
2 sell at 62.5 for £20, final result example 70
points, loss £150
all profit of £70
betting sites have the option to "Close" the
bet at the click of a button (rather than actually having
to place the opposing bet). This can be done in your
Open Bets section. Once the bet is closed any profit
or loss will be credited immediately (you do not have
to wait for the event to finish).
Example - Say you buy England runs £1 a run when
the price is 320-340.
a poor start for England the price drops down to 220-240,
you decide England are likely to do even worse and you
cut your loses. You sell at 220 giving you a loss of
120 (340-220). Whatever the final outcome you will have
a loss of £120.
actually finish on 180 runs, so you were right to close
the bet early -
at 340 for £1, loss of (340-180) £160
at 220 for £1, profit (220-180) £40
two bets above cancel out, giving a loss of £120
whatever the final outcome.
you had not closed the bet early, you would simply have
lost the £160 from your initial bet.
are generally used for long term markets like Wimbledon
or Big Brother Reality Show. They work by allocating
points based on performance.
example a Wimbledon 100 Index might award 100 points
to the winner, 75 to the runner up, 50 for losing semi-finalists,
33 to losing quarter finalists etc
the start of the event all the people playing will be
given a price. For example Henman might be 38-40.
If he loses in the semi-finals, he will have 50 points
buyers make profit of 10 (50-40) times their stake
sellers a loss of 12 (50-38) times their stake.
prices in index markets will change as the tournament
progresses giving plenty of opportunity for closing
bets during the event.
you’ve probably gathered, profits and losses on
a single bet can be quite large relative to the stake
so make sure you’ve fully understood each bet
before selecting your stake. It’s a good idea
to work out a best and worse case senario and what the
profit/loss on that result would be.