Financial Spread betting is a different way to bet on sports that is also enjoyable. Instead of just choosing who is going to win or lose, your winnings or losses depend on how close you are to the real outcome. The nearer your estimate is to the real outcome, the more you win. Watch out, though—if you are wrong, you can lose as well.
This guide will inform you of everything about how spread betting works, spread betting essential tips, which sports offer it, how it compares to other betting, and how you can stay safe while enjoying it.
What Is Financial Spread Betting?
Financial spread betting is betting on price movement in financial markets without owning an underlying product. Financial spread betting allows you to make money from the rise and fall of the market by betting on the rise or fall in the price of a financial instrument, i.e., stocks, indices, commodities, or currencies.
You, thus, do not own the security you are wagering on – you are wagering on where its price will go. An example from everyday life would be to take a spread bet position that the price will rise. You would not go and buy some gold to do so, but you are simply demonstrating that you are predicting its price will move higher over some time period. When it does, your trade has value, and you are paid.
It is worth noting, though, that this process is actually trading rather than “betting” in the traditional sense. This is because, much like stock or forex trading, you are buying and selling assets to profit rather than putting money on something happening. It might seem like they are similar concepts, but it’s a distinction worth making.
At the most basic level, this is pretty much all there is to it. It does not really matter what the security is that you are betting on: it could be forex, commodities, shares, or literally anything else that has a moveable price in a financial market.
Spread Betting Example
Let us consider an example of soccer (or football).
Let us say a sportsbook has a spread of 2.8 – 3.0 over the total goals in a game. You think there will be more than 3 goals and bet at 3.0 for $10.
- If 0 goals: You lose $30 (0 – 3 = -3 × $10)
- If 3 goals: You break even (3 – 3 = 0 × $10)
- If 5 goals are scored: You win $20 (5 – 3 = 2 × $10)
Let us say you sold at 2.8 instead:
- If 0 goals are scored: You win $28 (2.8 – 0 = 2.8 × $10)
- If 4 goals are scored: You lose $12 (2.8 – 4 = -1.2 × $10)
As you can see, it all depends on how far the final figure is away from the spread.
Which Sports Do Spread Betting Apply To?
Spread betting is used in various forms in several sports. Let us discuss some of the most well-liked ones.
Football (Soccer and American)
In football, you can bet on:
- Total goals
- Number of corners
- Shirt numbers of goalscorers
Goal difference between the teams (known as “supremacy”)
For American football, you typically wager on the point spread—by how many points one side defeats the other. This is America’s most common form of spread betting. Later, more on American football point spreads.
Horse Racing
You can wager on:
- How far in front a horse wins
- Points are accumulated for winning or finishing placed
- The sum of the racecard numbers of the leaders
- These are slightly more complex but enjoyable once you are used to them.
Tennis
Tennis spread bets involve:
- Total games
- Number of sets
- Points by each player
- Match margin (by how much a player wins)
Cricket
Some of the most popular cricket spread bets are:
- Total runs scored
- Individual player runs
- Team performance points
- Runs in an over or an innings
Other Sports
Spread bets are also available for:
- Basketball
- Baseball
- Golf
- Politics and even reality television
Each market is different, so do read the information beforehand.
How Is Spread Betting Different from Regular Betting?
With fixed-odds betting, you know exactly how much you can win or lose. If, for example, you bet $10 with odds of 2:1, you win $20 or lose $10.
However, with spread betting, there is no win-or-lose fixed. You win or lose, depending on how right (or wrong) you are. That makes it more exciting—but also riskier.
US vs UK Spread Betting
In the UK, spread betting will more likely be on sophisticated statistics like shirt numbers or goal differences. In the US, it is the point spread in basketball and football games. If the spread is -4, for example, your team must win by more than 4 points in order for you to win your bet.
Know what type of spread betting you are doing!
Sports vs Financial Spread Betting
You can also spread bets on finance. You do not bet on sports, but you bet on whether a stock market will rise or fall. If you are right, you win for every point that moves in your direction. But if you are wrong, you lose for every point that it moves against you.
Stop-loss and take-profit orders are the way that most traders control the amount they lose or gain. But remember—this is gambling, not investing.
Best US Spread Betting Sites
US spread betting is primarily in sportsbooks like:
- FanDuel Sportsbook
- DraftKings Sportsbook
- BetMGM
These sites use point spreads on most sports, football and basketball being the main two. You would not be witnessing UK-style spread betting on anything like racecard points, but the American variants are also exciting.
Best Financial Spread Betting Tips
Here are some intelligent tips so that you can have fun safely:
- Start Small: Bet in small amounts to begin with. Since losses accumulate quickly, it is advisable to learn step by step.
- Do the Math: Always work out your worst-case loss. If you cannot afford it, do not gamble.
- Know the Sport: Bet only on sports and statistics that you know.
- Use Tools: There are tools on some betting sites to prevent losses or early cashouts. Use them if available.
- Keep in Control: If betting is causing stress or you are trying to chase losses, stop or get help from groups like Responsible Gambling.
Pros and Cons of Spread Betting
Pros:
- Enormous potential winnings
- More exciting than standard bets
- You are still involved in the game for the duration
Cons:
- Enormous potential losses
- Easier to get tangled up in
- Not ideal for those with gambling problems
Final Thoughts
Spread betting can be exciting and a new way of enjoying sports. But it is also more risky. Ensure that you know its position, only bet what you can afford to lose, and you are always in control.
If you prefer something even risk-free, try matched betting as a great way of making money risk-free. You place a bet and then place a contrary bet (a lay bet) in a manner that the risk gets canceled out. If done properly, it can give you a guaranteed profit.
