Spread Betting – A Beginner’s Guide

| November 23, 2010 | 2 Replies

In a nutshell

Spread betting covers markets where there are a wide range of possible outcomes, such as total runs scored in a cricket match, or total points won by a football team over the course of a season. The amount of profit or loss you make varies depending on how right (or wrong) your prediction is.

Advantages and disadvantages

Spread betting is one of the most exciting forms of betting, where every run, point, goal or shot counts for something.

The closer you are to your prediction the more profit you make and believe me, you can make big profits! Unfortunately, the same applies to losses and you can lose far more than your initial stake.

Fortunately, like any betting service, it’s easy to control your potential profit or loss and just as you can choose a stake with a bookmaker, you can select a maximum profit/loss when spread betting.

Sporting Index also offers a ‘stop loss’ service, which can limit winnings, limit the size of a bet if it exposes you to excessive risk, or in some cases cause bets to be refused.

This form of betting is probably better suited to seasoned betters than amateurs, due to its focus on statistics rather than outright results. However, if you know your sport and you know your betting, spread betting can be one of the most exciting and lucrative ways to make money.

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Step by step

1. Head over to a spread betting service and select the market you wish to bet on.
2. You will see a number of ranges e.g. 17 to 24 and an option to buy or sell.
3. If you think that the outcome will be lower than the bottom end i.e. 17, select sell.
4. If you think the outcome will be higher than the top end i.e. 24, select buy.
5. Choose your stake and you will now be able to work out your potential profit or loss from the bet (when selling, your stake is multiplied by the price i.e.17, minus the outcome. When buying, your stake is multiplied by the outcome minus the price i.e. 24).
6. Confirm the bet and ensure that you keep a close eye on proceedings – with spread betting, you can also bet in-play.

Examples

Example one:

You think that Kevin Pietersen will struggle in the upcoming England Test match and see that the range on offer is 77-84.

You decide to sell and want to risk about £200. You know that Pietersen is highly unlikely to score more than 277 runs, so you stake £1.

Kevin Pietersen is out for a duck in both innings! Happy days! You win 77 (77-0) times your stake, which leaves you with a profit of £77.

Example two:

You are convinced that Arsenal are going to have a good season and see that the points range on offer is 73-74.5.

You decide to buy and want to risk about £50. As a result, you stake £2.50.

Arsenal have a slightly poorer season than expected and finish third with 73 points. As a result you lose one and a half (73-74.5) times your stake, which leaves you with a loss of £3.75.

Where can I use this technique?

The two main spread betting sites for sport are Extra Bet and Sporting Index.

They both offer odds on a wide range of sports and each have a selection of different spread betting markets to choose from.

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Comments (2)

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  1. Peter says:

    Dear Sir/Madam

    I appreciate betting can be addictive and compulsive if not handled right therefore following the two scenearios below to explain spread betting if I follow it to the letter will my outcome be the same as the two examples shown

    Example one:

    You think that Kevin Pietersen will struggle in the upcoming England Test match and see that the range on offer is 77-84.

    You decide to sell and want to risk about £200. You know that Pietersen is highly unlikely to score more than 277 runs, so you stake £1.

    Kevin Pietersen is out for a duck in both innings! Happy days! You win 77 (77-0) times your stake, which leaves you with a profit of £77.

    Example two:

    You are convinced that Arsenal are going to have a good season and see that the points range on offer is 73-74.5.

    You decide to buy and want to risk about £50. As a result, you stake £2.50.

    Arsenal have a slightly poorer season than expected and finish third with 73 points. As a result you lose one and a half (73-74.5) times your stake, which leaves you with a loss of £3.75.

    Is the £3.75 all I would have to pay back or would there be anything else I would have to pay on top of that.

    Once I have mad my spread betting would I be advised on what my total potentials winnings would be and also what my total losses would be so that I would be informed before I confirmed my transaction.

    Let me make this a bit clearer.

    For example if I decide to buy some things online from Amazon, the system will calaculate the individual purchases online totally them as you make the purchases. The Amazon system will them say have you finished with your buying of your purchases ands ask you do you want to pay for them now , edit your choices or cancel your decision to purchase. So that you go onto the next page to confirm and go though your process to conform purchase and make payment. Is your system like that?

    Or if you make a purchase and you lose do you have to pay back your stake and any potential winnings you could have made. That is you pay £2.50 stake and your potential winnings are £50. Do you pay back a total for that stake of £2.50 + £50.00 = £52.20

    I would appreciate your input to my enquiry.

    Look forward to hearing from you soon.

    Yours

    Peter.

  2. Matt Houghton Matt Houghton says:

    Hi Peter,

    Yes, you would only lose £3.75 in that specific example.To work out profit/loss, you simply multiply your stake by how much you win/lose by.

    On the website you will also be able to view your bets position and take a profit or cut your losses ‘in-play’.

    If you have an example of a specific bet that you are thinking of placing, let me know and I’ll tell you what your potential profit/loss is.

    Regards,
    Matt

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