Spread betting is a technique that is widely used in sports gambling. Compared to regular fixed odds betting, it may seem somewhat complicated and take some time to wrap your head around the ways it works. But once you get the hang of things, it can diversify the gaming process.
In this guide we will take a close look at what spread betting is, how it works, and what you need to know before you start using it in sports betting.
What is Spread Betting?
In spread betting, instead of betting on a particular outcome of a sporting event (known as fixed odds betting), you bet on whether it will be higher or lower than the spread set by the bookmakers.
So what does “spread” mean in betting? Let’s say, the bookmaker (bookie) says the total number of goals in a football match between Team A and Team B will be 2.8 – 3. This range is called a “spread”. It is often expressed in decimals, and later we will explain why.
Bettors can either “buy” (go higher) or “sell” (go lower) when betting on this range. If you think the total number of goals in this match will be higher than 3, you buy. If you think it will be lower than 2.8, you sell.
Now that you are familiar with the key terms in spread betting, let’s take a closer look at how it works.
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How Spread Betting Works
One of the main reasons for introducing spread betting is to bring balance to the field and allow the punters to place wagers on either side of the game.
The spread set by the bookmakers shows what result they expect from the game. It is based on factors like the teams’ recent performances, their common history, squads and injuries, and others.
Spread is often displayed in decimals to avoid a tie, known as the “push”. If a push occurs, neither the bookmaker nor the bettor wins, and all bets are returned.
Bettors can win both by buying and selling as long as their bet falls on the right side of the statistics. In the example above, you could buy by betting that the total number of goals in the match would be higher than 3. If this proves to be the case, you win.
You could also sell, betting that there would be fewer than 2.8 goals. Should the match end with 2 or fewer goals scored, you win your bet.
Key Features of Spread Betting
One major difference between the fixed odds and spread betting is that in fixed odds you know exactly how much you can profit in case your bet wins. At the same time, if the outcome you bet on doesn’t occur, you know that you stand to lose your stake.
In spread betting your potential winnings as well as your potential losses are much more volatile and will depend on the exact outcome of the game and how accurately you predicted it. On the bright side, this theoretically opens up a possibility of unlimited profit. But it just as well means unlimited potential losses.
Let’s take a look at an example of how profits and losses are calculated in spread betting.
If you stake £10 and decide to buy in the match where the spread is set 2.8-3:
- 0 total goals – £30 loss ((0 – 3) x 10)
- 1 total goals – £20 loss ((1 – 3) x 10)
- 2 total goals – £10 loss ((2 – 3) x 10)
- 3 total goals – break even ((3 – 3) x 10)
- 4 total goals – £10 profit ((4 – 3) x 10)
- 5 total goals – £20 profit ((5 – 3) x 10)
- 6 total goals – £30 profit ((6 – 3) x 10)
If you decide to sell in the same match, this is the outcome you can expect:
- 0 total goals – £28 profit ((2.8 – 0) x 10)
- 1 total goals – £18 profit ((2.8 – 1) x 10)
- 2 total goals – £8 profit ((2.8 – 2) x 10)
- 3 total goals – £2 loss ((2.8 – 3) x 10)
- 4 total goals – £12 loss ((2.8 – 4) x 10)
- 5 total goals – £22 loss ((2.8 – 5) x 10)
- 6 total goals – £32 loss ((2.8 – 6) x 10)
Of course, football matches rarely end with a goal count too high, but it can’t be completely ruled out. That’s why, you should be well aware of the risks before making your decision, as your losses might exceed initial investments no matter if you buy or sell.
What Spread Betting Has to Offer
Spread betting offers a number of interesting possibilities to bettors. First and foremost, your potential payout increases with the “accuracy” of your bet. This can be an alluring factor for many bettors.
Spread betting also makes the game more entertaining. In matches where there is a clear favourite, the interest may fade away pretty quickly, especially if the fate of your fixed odds bet is already determined. In spread betting, every goal changes the amount of your potential payout or loss, so you are more likely to stay invested till the final whistle.
Besides, in spread betting you can not only support the favourite, but bet against them if you sell. This also brings variety to your betting patterns.
What You Should Be Aware of in Spread Betting
Whatever makes up the most interesting factor of spread betting also happens to be its biggest risk. As your potential profits can become pretty high with every additional goal if you are on the “correct” side of the bet, so will your losses if you guessed “wrong.”
Understanding the payout system in spread betting is probably even more important because it isn’t as straightforward as in fixed odds, so you might need some additional time for this. Exploring resources like a craps betting guide can help you grasp similar betting concepts and improve your overall strategy.
When it comes to legal regulations for spread betting, the UK and many other countries don’t impose any prohibitions. However, before you start placing wagers, make sure sports betting in general and spread betting in particular are allowed in your region. Additionally, familiarizing yourself with lay betting strategies can provide valuable insights into alternative betting methods to enhance your approach.
FAQ
Can you lose more than your initial stake?
Yes. Since your final profit/payment depends on the actual outcome of the match and how accurate it is compared to the spread, you may lose more than you staked, if your bet wasn’t right.
What happens if you match the spread?
If a match ends with a total number of goals exactly at the higher end of the spread (for example, 3 in a 2.8–3 spread), only those who bought at 3 break even, while those who sold at 2.8 incur a loss. In this case, neither the bettors nor the bookie win, and the wagers are returned. To avoid this, bookmakers often set the spread with decimals (for example, 3.5), as it is physically impossible to score half a goal.
Is there a minimum stake for spread betting?
You should check the minimal allowed stake with your bookmaker. If you are a beginner in spread betting, it is recommended you start small before getting the hang of the process.
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