UK SPREAD
BETTING OPTIONS - Sports
Spread Betting
What is Spread Betting?
The basic premise of spread betting is that a bookmaker
looks at an event, predicts what he thinks the outcome will
be, and then offers a spread based on that figure. You then
decide whether you think the result will be higher or lower
than their guess. To make this a little easier to understand,
Spread Betting Options provides you with the following example:
Sports Spread Betting Example
Our example of England Runs 250 - 270 is effectively a
spread company's prediction of how many runs England will
score in their innings. With this and every spread quote
you have a choice of two bets. You can predict that the
score will be higher than the high figure (270) or lower
than the low figure (250). If you think England will blaze
away to score over 300 you would want to go higher. Going
higher is always termed buying (or going 'long'). If you
believe England will get bogged down and be caught or bowled
out easily you would want to go lower than 250. Going lower
is always termed selling (or going 'short').
The stake is up to you. If you choose to stake £1
on a buy of England Runs at 270 you win £1 for every
run that England score above 270. The snag is you will lose
£1 for every run below 270. If you predict correctly
and they complete a total of 330 you win the difference
between the result (330) and the figure which you bought
at (270). The difference, 60, is multiplied by your stake
of £1 to give a final win figure of £60. If
England had been dismissed for 220 you lose the difference
between the result (220) and the figure you bought at (270).
The difference, 50, is multiplied by your stake of £1
to give a loss of £50.
This type of bet can apply to the number of goals in a
football match, the number of tries in rugby or more obscure
variables, such as the number of wides bowled in a Test
Match Series.
Financial Spread Betting
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