Spread betting explained

Feb - 12 2014 | By

Spread betting options are extremely popular lately as they offer greater opportunities for profit then the so-called fixed odds. It should be noted that this way of betting is also much more risky and can lead to serious losses of money for the players.

The main difference between spread betting and fixed odds is in the fact that when betting on fixed odds the player knows what kind of possible profit or loss he or she will have at the end of the match. However, when betting with spread betting options it won’t be clear until the match is finally over.

This is because unlike betting on fixed odds where the player just says will an event happens or no, in the spread betting stakes the player buys a difference between the actual result and the line previously announced by the bookmaker.

Here is an example of the difference between the two betting option which will make the topic clear.

Let’s have as an example the match between Boston and LA Lakers from NBA. The proposal of the bookies like bet3265, William Hill and bet-at-home for total scored by both teams points is 200.5. So the player must bet will the actual number of scored points be over or under this bookie’s line.

In fixed odds betting, if you bet on Over 200.5 and the match ends with 210 total points scored, for each pledged Euro you will get 1.9 as a win. If the match ends with 230 points scored by both teams you will get the same profit. However, if the match ends with lower than 200.5 total number of scored points, you will lose your bet.

However, in spread betting you buy the difference from the bookmaker line and the actual result. So, here is our example. Let’s say you bet one Euro per point with your bookmaker which could be bet365, William Hill, bet-at-home or someone else. So, if Boston and LA Lakers score 210 points and you have bet for Over, you would win 9 Euro. If both teams score 215 points, your profit would be 14 euros.

Conversely, if you bet on Over 200.5 points, but both teams score 190 points, you would lose 9 Euro. If you have the bad luck and they score just 170 points, your loss would be 29 euros.

This example clearly shows the opportunities that spread betting betting offer, but it also shows the bigger risks, which you also have to calculate when choosing this type of betting.