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This type of betting is very different to other types of wagering like fixed-odds betting or pari-mutuel betting. In this guide, we will explore spread betting in a bit more detail.
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What is spread betting?
Spread betting has been described as the stock market of sports gambling. In fact, you can spread bet on the financial markets as well as sports. Instead of gambling on the outcome of the event you are buying or selling on a price based on what you believe will happen against the bookmakers’ belief.
Bets are settled at the end of the event which means you do not have to settle up (if you lose) until the event is over, even though bookmakers will require you to have these funds in your account.
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Instead of having prices like 12/1 you are offered a spread price. In this example, we will use the premier league final position betting a popular choice for fans of spread betting.
At the start of the season you will be offered a final point total. If you see a team (say Sunderland) that are offered at significantly higher or lower points then you expect then there are chances to win in the spread market. For example, if Sunderland are offered at 50-52 points in the season and you fancy them to finish much higher then you back them at 50 X your initial stake. Say your stake is £5 then you are committed for £250. When it comes to the end of the season if Sunderland has 70 points then you can sell your ‘stake’ based on the difference in points. 70-50 = 20 points, 20 points X your original stake = £100 profit.
The beauty of spread betting is you can buy or sell points at any point in the season. For example, if Sunderland has a great start and pick up maximum points after 10 games then their spread will increase, you can then choose to sell your stake in Sunderland at that point.
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