Spread betting seems like one of the most difficult forms of sports betting to understand. However, once you get to grips with the basics and expand your knowledge, it becomes easier to follow.
Spread betting is actually most popular in finance and perhaps this is the best place to begin. Spread betting allows people to speculate on the future of the financial markets and potentially make a big profit.
However, it can also result in huge losses due to the volatility of the financial markets. The basic principles remain the same for spread betting in sport. Rather than betting on the outcome of an event, you are betting on the movement of the market.
1. Let's have a look at the example
Let’s take a look at the Premier League for example. You can place a spread bet on the number of points a team will win in the league. The spread is set at 75 and you will bet a specified amount per point you think the team will finish above or below that number.
So, if you stake 1 Euro per point they will win above the spread, you will win 1 Euro for every point they achieve over the spread. However, if the team finishes below 75 points, you will lose 1 Euro for each point below they finish.
We have used a 1 Euro stake in the example for the basis of simplicity but many punters will bet anything upwards of 5 Euro per point. As you can see, this can produce a good profit but could also end with a massive loss should things not go well for the team.
If you wish, you can put a stop loss on the bet and that’s the point the bet will end and you take a controlled loss.
2. Complex spread bet in football
You can place a spread bet on player goal minutes. The spread for a player such as Lionel Messi could be set at Sell 27 and Buy 30. If Messi scores in the 10th and 50th minute this equals 60 minutes, so if you bought at 10 Euro per point at 30 you would win 300 Euro. However, if Messi scored in the 10th minute and that was his only goal of the game, you would lose 200 Euro. This highlights just how tough spread betting can be at times.
You are advised to practice spread betting without using real money to begin with, as the losses can be big.