Line

by Mauricio Peñaranda

Betting on line: The concept and working of spread betting

This is true, in recent years, in the UK; Spread betting has been a major growth market. This is because of the huge potential gains or the losses, involved in this type of bet, which is much more than the original money wagered. Because of the higher risk factor involved in Spread betting, instead of the Gambling Commission, the spread betting in the UK is regulated by Financial Services Authority.

As far as on line betting sites are concerned, Spread betting is different from the normal straight forward bet. Unlike any other type of bet, spread betting too is wagered on the outcome of an event, the only difference is that instead of the simple ‘win or lose’ outcome, it is based on the accuracy of the wager. Spread refers to array of outcomes while bet consists of whether the outcome will be above the spread or below the spread.

In the case of online sports betting, a spread betting online bookmaker, predicts in advance the result of a particular match that you want to place your bet on. They give you a spread between the highest point and the lowest point of their result estimation which is quoted in ‘Pips’. In the market, each and every movement that takes place in the price of the wager is measured in pips. For every movement in the pip, your bet is multiplies in order to multiply your gains too. For every negative movement in the pip, your losses too are multiplied. In online sports betting, more and more people are indulging in spread betting. The risks involved in spread betting are completely offset by the possibility of huge gains involved in it.

For Instance, if you consider a football game between Ashton United and Liverpool. In this game, the spread for corners is 9-10. This implies that the bookie or the on line bookmaker feels that at the most, there will be 9-10 total corner kicks in this particular game. Now, if a bettor, involved in online sports betting, will approach the on line bookmaker and “buy” at 20 pounds a point at 10. If the total number of corners in that particular football match is above 10, then the bettor will receive 20 pounds for each point above 10. In the case of total number of corners being less than 10, the bettor will end up losing 20 pounds for each point.

Similar is the case with the “sell” transaction. The only difference in this case is that the transaction is made against the bottom number of the spread. Most of the spread betting takes place in the event of live matches where there is live pricing which changes the spread during the match in order to enable the profits to be increased or the losses to be minimized.

Most of the on line bookmakers as well as the bookies offer a ‘stop loss’ service with spread betting in order to reduce the detrimental effects of losses. Most of the online betting sites, by offering stop loss on the spread betting wager enables you to limit your loss to the maximum possible limit that can comfortably absorbed by you. Stop loss basically insulates you from the losses beyond the given limit.

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