Spread Betting Guide Page 1
Definition Of Spread Betting
Spread-Betting is a different kind of betting, which involves a figure being set by a Bookmaker for an event, and if you choose to bet you can go higher than lower. If you think the figure they have stated will be correct then you don't bet.
This kind of bet is offered by specialist financial companies, so you can't make a spread bet at a normal Bookmaker. This is because there is a lot more risk involved in spread betting. Potentially you can stand to lose a lot of money from spread betting, as there is no limit to the amount you can lose. Probably the most common market spread betting is used for is the total goals scored market in football. Here they would set their predicted amount of goals, and you could buy (meaning you think there will be more goals scored than the figure stated), or you could sell (meaning you think there will be less goals scored than the figure stated).
An Example Of A Spread Bet
The spread-betting firm could set a figure of 3 for the amount of goals scored. You could have a £20 bet that there will actually be more goals scored than this, so you would buy a stake of £20.
Then if say 6 goals were scored in the match, you would win £60. This is worked out by finding the difference between the predicted amount (3) and the actual amount (6) which equals 3. Then you multiply this difference by your original stake, so 3 x £20 = £60.
Important: Spread Betting can be a very dangerous hobby when you don't understand what you are doing. This is because when you bet, sometimes there is no limit to the amount of money that you can lose (though most spread betting firms operate a 'fixed loss' point). At a normal bookmakers you can place a £20 bet and the most that you could lose is £20. However if you place a £20 spread bet on there being less then 2 goals in a football match, there is no real limit to the amount of money that you can lose (for example, if there were 10 goals in the match you could lose £200). Therefore there is quite a high financial risk when spread betting, but our method will show you a way of betting at no risk, so aslong as you do everything as explained here, you shouldn't lose any money.
Another Example Of A Spread Bet
The spread-betting firm could set a figure of 10 for the total corners throughout a football match. You could have a £20 bet that there will be fewer than 10 corners in the match, so you would sell a stake of £20.
At the end of the match the actual amount of corners awarded was 18. You would have then lost £200 from your bet. The difference between the predicted amount (10) and the actual amount (18) which equals 8. This figure multiplied by your stake, £20, equals £200.
This is why spread-betting has such a dangerous reputation, as potentially there is a very high risk of losing a lot more than your original stake. If things go against you like they did above, your losings will inevitably spiral out of your control. This is why spread-betting is run by the specialist financial firms and not just ordinary Bookmakers, because of the risks involved. Usually before joining one of these spread-betting companies from their website, you will be subjected to a credit rating check. This is to ensure you are financially safe and able to become involved in spread betting, and therefore must have a reasonably clean credit rating.
Overview Of The Spread Betting Process
As with all of the other ways of making money from betting so far on this site, the spread betting process will involve you reading a few pages of information. It is vital that you understand all of this information, otherwise you could end up losing a lot of money (especially considering spread betting can be a very volatile market). I recommend that you print out these pages and read them through thoroughly before you start spread betting. If you would like to print off the pages about spread betting, click the printer icon below to view a printer-friendly layout of these pages.
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