If you are interested in wagering, it is important to know all types of betting there is out there. Here is our spread betting guide for beginners.
Spread betting is any kind of wagering on the result of an event (sports, personal, politcal, ect) in which the payoff of the wager is based on the accuracy of the bet. This means that spread betting is not as simple as winning or losing, rather, it is based on fixed odds or what is known as money line betting. So, you don’t just say you’ll bet the LA Lakers will win the game over the New York Knicks. You have to bet that the Lakers will win by 10 points.
In our spread betting guide, a spread is defined as the range of results while ‘the bet’ is whether the result will be above or below the said spread.
Spread betting is now a major form of betting, especially in the United Kindgom market where the numbers have reached one million gamblers.
Spread betting is said to have the highest level of risk among all forms of betting with potential losses or gains much more than the original money bet.
Spread betting guide: The Purpose of Spread Betting
The main reason why there is spread betting is to be able to create a market that is active in both aspects of a binary wager. This is even if the result of the event may be biased to one side. An example is if you are betting on a champion football team versus a not so good football team, well, it’s is easy to bet on the champion right? What spread betting does is put more challenge to the game by making the wager more specific, like how much more points will that champion football team make to beat the other team?
In all sporting events there will be an underdog and a favorite. Few bettors wager on the underdog for obvious reasons, so spread betting helps even up the chances. In essence, what we are saying in our spread betting guide is that spread betting is a way to give a handicap to the underdog. It is also a way for bookmakers to be able to sell the wagers and accept a decent amount of wagers from both sides.
A commission is charged by the bookmaker and a person acts as the counterparty for each gambler. When both sides of the wager is equal (or roughly of value), then the bookmaker does not have to be concerned with the outcome of the event. Instead, the money he makes will come from his commission. This makes the system of wagering and spread betting fair and reliable.