Introducing Sports Spread Betting

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In addition to spread betting on the financial markets, you can also spread bet on sports events. Although the basic concepts are similar, you will now speculate instead on sport events as opposed to the movements of financial assets. Essentially, your spreading betting broker will quote you a spread relating to various aspects of sports against which you can place bets.

A broker can use several methods of forecasting to achieve this objective. For example, such companies can offer spreads on the final score, time of first goal or the player to record the first point, etc. The following examples are intended to help you understand the fundamental concepts behind sports betting.

How to Beat the Spread

Envisage that a soccer match is scheduled to be contested today against Liverpool and Everton. Your spread betting broker assesses that with two such accomplished squads playing that at least one goal will be produced during the earlier stages of the match. Consequently, they quote a spread of 15 to 20 implying that the first score will occur between the 15th and 20th minute.

However, you evaluate that the defenses of both teams are so competent that you do not expect a goal to be score in the first half. As such, you instigate a bet by wagering $5 at 20. Such an action infers that you will profit by every minute until the first goal is produced if it happens after the 20th minute.

Envisage that you are correct as the first goal is scored in the 50th minute. Consequently, you would collect a profit of 30 * $5 totaling $150.

Closing Bets Early

An exciting advantage about spread betting on sports compared to other betting formats is that you can activate and close positions even during the event. This feature provides some interesting possibilities. For example, imagine that Spain is playing France in a world cup soccer match later today. As your spread betting broker anticipates a fluid and open match, it offers a spread between 3 and 5 because it anticipates that 3 to 5 goals will be scored during the game.

However, you disagree with this potential outcome as a couple of key strikers are injured. Consequently, you wager $500 at 3. As you correctly forecasted, the game is still scoreless by the 60th minute. As such, your broker revises it spread downwards to between 2 and 4. You decide to play safe by selling at 2 and registering an immediate profit of $500, i.e. 1 *$500.

Difference between Sport Spreads and Fixed Odds Betting

You are probably already familiar with the traditional fixed odds gambling. This form of betting involves pundits speculating on the outcome of a sporting event. They are quoted defined odds based specifically on the final result of a match.

However, in recent times another form of sports gambling has emerged which is currently growing rapidly in popularity. This new technique is referred to as spread betting which offers substantially higher rewards than fixed odds although at greater levels of risk exposure.

Spread betting on sports is constructed in an identical way as the same process used to trade the financial markets where brokers quote spreads based on selling and buying prices. For example, envisage that you are offered a spread of 820- 830 for Google. This proposal implies that your broker will permit you to purchase Google shares at $830 or sell them at $820.

When spread betting, you are not required to directly purchase direct ownership in any asset of interest. Instead, you can profit by correctly predicting the direction in which the price of your asset will advance. For example, consider that you have concluded that Google’s shares will rise in value. You therefor wager $10 per point and buy at $830. At expiration, you are proven correct as Google’s new selling price is $900. Consequently, you receive a profit of (900-820)* $10 = $800.

Sporting betting operates exactly on the same principle. You can use this unfixed bet format to activate a trade against the spreads quoted by your broker. The spread is defined as a range of values devised by your broker that is related to a specific aspect of the sports events, e.g. how many goals will be scored, etc. If you ascertain that your broker is wrong about it forecasts then you can place a bet outside this range as demonstrated by the previous examples.

Protecting Your Account Balance

Almost a decade ago, an individual derived the idea that spread betting, which was then used extensively to trade the financial markets could be equally adapted to sporting events. Since then, this form of betting has flourished rapidly in popularity. However, despite offering high rewards you must also appreciate quickly that sport betting harbors increased risk levels. You are therefore advised to master the concepts of money management as soon as possible in order to provide maximum protection for your equity. If you fail to instigate such measures, then you would lose your initial funds quite quickly if you become too excited and start to over-trade.

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