SPREAD BETTING EXPLAINED

Twenty years ago, spread betting terms like make-up, supremacy and mid-point were a foreign language to most UK sports punters, but they are now commonly understood by many gamblers due through the widespread growth of spread betting. If you are a newcomer to betting or have just discovered spread betting, then best free bets can help you with the basics of spread betting and trading tactics.

When they first started out, spread betting firms catered for wealthy gamblers who could afford to take the occasional heavy loss associated with this high risk form of betting and it had great appeal in the City where traders would bet on the performance of financial markets.

The average punter who bet with the high street bookmaker was overlooked in those days, but eventually minimum stakes were lowered and spread betting grew in popularity. Accessibility to spread betting has improved as many spread betting firms have launched sister websites to accommodate smaller punters. These days spread betting is another choice of gambling proving increasingly popular with the once traditional punter.

Many people who fancy a spread bet have been put off because they don’t understand it, but really it is quite straight forward. If you can remember the popular TV game show, Play Your Cards Right, then as a spread betting punter you are faced with same question, do you want to go higher or lower?

The big risk comes knowing the more you are right, the more you will win but the more you are wrong then the more you will lose.

There are three basic terms you need to understand:

The spread - this is the range set by the spread betting firm and you have the choice to bet higher than the high point of the spread or lower than the now point of the spread.

Example: Staying with a deck of cards with 2 the lowest number and Ace the highest, the spread might be set at 7-8 and you must predict if the next card from the deck is lower than 7 or higher than 8.

Spread Betting image

 

Buy – you will buy the spread if you think the next card will be higher than 8. Lets say you buy for £10; for every card higher than 8 you will win £10 and for every card lower than 8 you will lose £10.

 

 Sell – you will sell the spread if you think the next card will be lower than 7. Lets say you sell for £10; for every card lower than 7 you will win £10 and for every card higher than 7 you will lose £10.

 

 

 

From the example; you turn the card and it’s a 3. If you bought the spread you lose and because the card is 5 less than you bought (8), your losses are 5x£10 staked, a total of £50. If you sold, you are in luck. The card is 4 less than you sold (7) and you win 4x£10 stake, a total of £40.

So you’ll see, if you are looking for sheer adrenaline-charged excitement that lasts to the very end of the event, then spread betting certainly beats the straight win/lose scenario of fixed-odds betting.

Find out more information in best free bets’ Betting Guide

TYPES OF SPREAD BETS

SPREAD BETTING TIPS

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