 What is sports spread betting? |
What is sports spread
betting?
At
Sporting Index we
make predictions on various aspects of sporting or topical events. You then
decide whether that prediction has been pitched too high or too low. What
you then win or lose depends on the stake you choose and how right or wrong
you are.
Why do you quote two prices?
You'll notice that our predictions are presented in the form of two prices.
This range is known as the 'spread' and you bet low (also known as a 'sell')
at the first named price and if you wish to bet high (known as a 'buy') you
would do so at the second price.
For example, if someone asked you to guess their age, you might say: 'somewhere
between 35 and 40'. In the same way, when we make a prediction, we allow a
range. If you were placing a spread bet on this prediction you would bet low
at 35 years or bet high at 40 years.
How does sports
spread betting
differ from traditional fixed-odds betting?
With sports spread betting you are betting on the outcome of an event but
the pay-out is based on the accuracy of the wager, rather than a simple 'win
or lose' scenario, which is offered in fixed-odds sports betting. A spread
is a range of outcomes, and a spread bet is whether the result will be above
or below the spread.
In fixed-odds your potential winnings (and the amount you may lose) is fixed
and known at the time the bet is struck. In spread betting, the amount you
may win or lose will vary according to how right or wrong you are compared
to our prediction. So unlike fixed-odds, the more right you are the more you
win (and the more wrong the more you can lose).
How can I win or lose money?
Spread betting can be very rewarding and produce large returns on small
stakes. Basically the more you're right, the more you win. However, the
opposite can also be true - so the more you're wrong, the more you
potentially lose. The profit or loss is determined by the difference between
the final result and the price you originally bought or sold at.
For example,
Sporting Index might
predict that the first goal in a match between Chelsea and Manchester United
will be scored in the 36th minute and consequently set a spread of 35-37
minutes.
One client who believes there is bound to be an early goal goes low (sells)
at 35 minutes while another who thinks that both defences will be at their
best goes high (buys) at 37 minutes. If the 1st goal is scored in the 25th
minute, the client who went low at 35 minutes wins 10 times his stake (35
minutes take away 25 minutes = 10) while the client who went high at 37
minutes loses 12 times his stake.
What are the benefits of spread betting?
Spread betting with
Sporting Index brings
more exhilaration to live sport than any other form of sports betting. Here
are just a few reasons why:
1. The more you're right, the more you
win (and vice versa).
The majority of sports spread bets offer the
attraction of potential big wins (but also potential losses) based on a
multiple of your stake. No other form of sports betting comes close to
offering this level of excitement.
2. It's not as risky as you might think.
Spread betting has a stigma of being risky,
however this is misplaced. Like all forms of betting, it's only as risky as
you want it to be. By controlling the size of your stake, you are
controlling how much risk you are willing to take on. It's exactly like one
bettor having a £2,000 fixed-odds bet on a team to win versus one who has
£20 - it's all down to what you feel comfortable with.
Additionally, a Stop Loss account is a good way of controlling the perceived
risk of spread betting. With this type of account, every bet you place has a
maximum win and loss limit applied but again, it correlates directly with
the stake you choose. That's the important thing to remember, it all comes
back to the stake size. And as Sporting Index accepts stakes as low as £0.05
on some markets, we cater for all sizes of bet.
3. Bets can be closed or new ones opened
at any time during live events.
Unlike a fixed-odds bet where you have to
wait for an event to reach its conclusion before receiving a payout, you
have the power to take a profit on any spread bet as soon as it becomes
available (or cut your losses).
While betting exchanges allow punters to hedge their positions by laying
back their selections at skinnier odds, many exchange markets are not fast
moving enough for this to happen, or lack the liquidity to allow you to do
it in the levels you might require. There are no such limitations with us!
And of course with the ability to trade a bet in-play, if you see a bet is
starting to go against you and you are no longer comfortable with your
position, you can close out of your bet and take a small loss ' something
you simply cannot do with a fixed-odds bet where you are stuck with the loss
in its entirety.
4. A huge choice of betting
opportunities.
Although many bookmakers are now offering
more markets, it is spread betting that really provides the variety in
modern-day sports betting. Here are just two examples of interesting bets in
different sports which simply aren-t available through any other betting
medium:
Football: Multi-Corners. This market is determined by
multiplying the total number of corners in the first half by those in the
second half (e.g. first-half corners - 5, second-half corners - 7 = 35).
Punters who feel there will be very few corners in the first half with many
more in the second will normally sell the predicted figure for
multi-corners. This is a completely different alternative to any other
corner bet available.
Horse Racing: Jockey Performances. If you fancy a jockey to
have a good day then you can buy his/her performance, and vice versa if you
think he/she will have a poor day in the saddle.
5. Back a team or individual to perform
well or badly.
Spread betting
was first to give the opportunity to bet on things not to happen, as well as
individuals and teams performing well or badly. Where else can you bet on
how well or badly Cristiano Ronaldo will play in a particular game? Or
oppose favourites without nominating who will beat them?
6. Create your own bets.
By using our unique 'Multiples' feature, you
can build your own customised bets. So you can pick two teams/players to
take each other on in a mythical match bet regardless of whether they are
actually playing each other.
How do I limit my risk?
Some spread betting markets are more volatile than others. In football, a
market such as total goals for a match rarely makes-up above 7 goals (in
fact approximately 95% of such games have less than 8 goals). This is an
example of a market which exhibits low volatility. At the other end of the
scale, in a market such as cricket runs, your profit or loss can escalate
very rapidly.
A high staking punter may bet £10 per run, which has a potential loss or win
of about £2,000, depending on the eventual make-up. Yes, this appears a big
bet but remember, the bettor knows it's a big bet and will be placing it
because they are comfortable with this level of risk and the potential
financial outcome. If you are not comfortable betting with this sort of
stake you can bet on the same market for just 10p per run. At 10p your
likely maximum loss or win is only £20.
So careful control is vital and we recommend four basic guidelines:
- Always remember that you may lose more than your original stake. By
choosing a smaller stake size, you reduce your potential losses (and
winnings).
- Recognise that some sports betting markets are more volatile than
others (i.e. the final result could be a long way off from the original
quote).
- Always work out what the realistic worst case scenario of the bet
could be and relate it to the amount that you are prepared to stake.
Also remember to check whether there is a maximum result that the bet
can make-up (the 'maximum make-up'). You can do this on any market by
rolling your mouse over the
'i'
icon alongside the market which gives you
more information on each market.
Where possible, keep a careful eye on the event on which you have
placed the bet, and be prepared to cut a loss if the bet is going
against you. You can do this by closing an open bet at any time. Our
website keeps you up to date with the current profit or loss of any open
positions you may have.
Additionally, with our Stop Loss account you can benefit from a cap on the
amount that can be lost (and won). It is important that you familiarise
yourself with our stop loss rules: they can limit your winnings, limit the
size of the bet if it was to expose you to excessive risk, or in some
instances cause a bet to be refused. You can also check out Stop Loss limits
here for our most popular markets.
What other hints and tips can you give
me?
Here are some handy additional tips to consider. Think of these nuggets as
the 10 commandments of sports spread betting and they should stand you in
good stead.
1. Do your research . . .
There will always be a percentage of surprise
results in any sport, but it does no harm to check the statistics (or the 'form'
as it is often called) and do your homework. Take a football game you are
considering having a bet on. Have you checked the probable line-ups of both
teams? Do you know what record the referee has with brandishing cards? And
what is the history of a particular fixture - is one team the other one's
bogey?
2. Watch the weather . . .
A muddy pitch and windy weather can equalise
the skill levels between seemingly mismatched football or rugby teams.
Cloudy skies can quickly give a fielding side the upper hand in a cricket
game. Heavy ground may render the form book valueless in horse racing, and
have a significant impact on winning distances. Some fair weather golfers
only produce their best when the sun is shining!
3. TV or not TV? . . .
If an event is live on television not only
will we be offering our unrivalled in-running service with a whole host of
great markets, but it also allows you to watch the action as it unfolds.
4. Stay in touch . . .
Try to keep in touch with the event you are
betting on, and monitor the changes to our spread markets in running.
Remember, if you are away from a PC and/or TV, you can always keep up to
date with our latest prices by using our award winning 'Bet on the Move'
mobile phone service.
5. Don't be afraid to close . . .
It can be very tempting to close a trade
that's going well for an early profit but leave one running that's going
badly in the hope that things will get better. Always consider cutting your
losses as well as taking a profit.
6. Play the bookmaker . . .
Imagine you had to price up a particular
market. Would you go higher or lower than the prices on offer? You can then
see if we have a difference of opinion from your original view.
7. Know your markets . . .
Spread betting
isn't just about how much one team will beat another by, or where a horse/golfer/driver
will finish in an event. Get to know all the different markets and how they
work as you never know when a Multi-Mules or Fat Lady might strike you as
the value bet.
8. Control your risk . . .
Always calculate how much your worst-case
scenario could cost if your judgment turns out to be completely wrong. There
is nothing worse than going high (buying) on the time of the first match
goal in a game at around 40 minutes and then seeing someone score after 90
seconds. It does happen!
9. From little acorns . . .
Don't be afraid to start small. You can get
the hang of it all with stakes as low as 10p a point. Then of course as you
build confidence and understanding you can increase your stakes to whatever
level you are comfortable with.
10. Still uncertain? . . .
Consider a Sporting Index
stop-loss account where your downside and upside on any bet is capped.
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