Sports spread betting provides a different way of betting on the outcome of a sporting event. As a customer, you bet against the spread and not usually on the fixed odds. Therefore, the winning amount heavily depends on how right you were in the chose direction.
A ‘Spread’ is a prediction of an outcome in a specific market for a sports event. It is expressed as a SELL-BUY range. An example is a spread of 2.8 – 3.0 for the total goals in Bayern Munich vs. Union Berlin game.
To bet, you have to decide what you believe the game outcome will be. If you the range will be higher, you will BUY while you will SELL if you are routing for a lower range.
The catch is the more right your prediction the more you win, and the more wrong you are the more you lose. This is so since your stake is the actual amount you decide to bet per point movement. For instance, a £5 bet means you will earn or lose 5 pounds per goal.
You could end up with losses higher than your original stake, with the wrong choice fetching higher loss prices. Most sports bettors are taking to spread betting as an alternative compared to fixed odds betting. Most workers from the financial sector have an edge with this betting phenomenon.
Sports Spread Betting Markets
In case you are a standard sports bettor, you are bound to find a hard time, especially with spread betting markets. As expected, conventional markets are different from each other with the sport. However, any form of betting presents a new learning curve. When it comes to spreading betting, it is not far removed from the normal fixed odd betting, especially if you catch a grasp of the fundamentals.
Is Spread Betting Profitable?
Spread betting can be profitable if you are right by multiple points. It could equally be catastrophic if you are wrong by a number of points. Its profitability depends on how right you are making it a high risk high returns betting strategy.
Advantages of Spread Betting
Here is a quick look of the benefits you stand to reap should you decide to adopt spread betting
You Win More if You are Right
The biggest advantage spread betting has against fixed odds betting is the potential to win if you are right. Couple this with the fact that the more right you are the better your win and you can see why many people are interested in this market. You should, however, first understand the math and potential losses before placing your bet.
A Wide Range of Markets
There are tons of markets from a wide range of sports you can choose from. This makes it easy to get a relatively safe spread especially if you know what to look for.
You Can Even Bet Against a Favorite
If your favorite team is playing, you don’t have to risk it all and bet on it winning. You can still get other relatively neutral spread markets that let you enjoy the game and potential outcomes.
Needless to say, the disadvantages are also hefty since this is a high risk high return strategy. The biggest disadvantage is your losses can quickly pile up if your prediction was wrong. You need to get this right and know what you are buying into before trying out the strategy. You should:
Know Market Volatilities
Market volatility determines how fast you can make or lose money. Some markets have very wide spreads or markups making it easy to lose out or win big. A good example is the total goal minutes compared to total goals in a football match.
Total goal minutes spreads across 90 minutes while goals could be between 0 and 15 or so. Choosing the right market will mitigate your risks while also giving you a decent win scale compared to fixed odds bets.
Manage Your Stakes Well
Proper stake management will make you a better bankroll manager. It ensures that you never risk more than you are willing to per bet. You have to choose how much you are willing to risk before deciding whether a market is worth the effort or not.
Spread Bet Example
Imagine a bookie is quoting a Total Goal spread at 3.0 -3.5 on a game.
Your bet outcome will depend on whether you choose to buy or sell and can be determined by the following formulas
- BUY: ((Match Result-Upper Spread Limit)x Your Stake)
- SELL: ((Lower Spread Limit-Match Result)x Your Stake)
Let’s assume the match ended 4-2. This is 6 goals in total and you had a £30 stake.
- Buy Scenario: ((6-3.5)x30) = 70 (a profit)
- Sell Scenario: ((3.0-6)x30 = 90 (a hefty loss)
What’s the Different from Financial Betting?
The main difference between the two, with sports betting, you are taking a punt for a specific event within a duration. A rule of thumb is when you place the bet, it is final. With financial spread betting, you have some basic indefinite period compared to a regular investment.
Therefore you can choose which end to bet. The case provides a simplification since fixed odd bets which can hedge in-running under exceptional circumstances, with a number of spread bets have a sort of underlying situation.