What Is Spread Betting? Everything You Need to Know

Spread betting is an alternative to fixed odds betting. Your bet doesn’t simply win or lose, with fixed odds and a set return or stake that leads to an agreed loss. Instead, every goal, corner, point or shot counts. In simple terms, you generally predict over or under a value. Unfortunately, if you get things wrong, the further off you are, the bigger your loss will be. However, the more accurate you are, the bigger your profit.

How Does Spread Betting Work?

What is spread betting? It’s a type of wagering based on the spread, where punters typically predict over (buy) or under (sell). Essentially, you are predicting whether the outcome will be higher or lower than the bookmaker’s prediction. However, in spread betting terminology, you either buy or sell the spread.

If you buy goals, you will lose if the game turns out to be lower scoring than anticipated. Conversely, if it is a real goalfest, you will win, and the more goals there are, the more you will win. You can lose more than your stake with spread betting, meaning it is important to understand how each market works. This “spread betting explained” guide will help you do exactly that!

Key Terms to Understand

Before we look at spread betting strategies, let us explain some key spread betting terms and concepts.

• The spread – The spread is essentially the bookmaker’s prediction for a given outcome. It also works to create a profit margin for them.
• Buy – If you buy, or “buy the spread”, you are predicting a result higher than the bookies.
• Sell – Alternatively, if you sell, you are predicting a lower outcome, be that goals, points, corners, runs, or anything else.
• Stake – How much you are betting per point, goal, or whatever. 
• Settled price – Essentially, the result. Some spread betting sites call this the make-up.
• Volatility – Some markets are far more volatile than others, so they can deliver big profits, but also big losses.
• Supremacy – A key market which relates to a team winning and by how much.
• Stop loss – Automatic closure of a bet once an agreed loss has been reached.

Example: Spread Betting on Sports Online

So, how does spread betting work in reality? No “spread betting explained” feature would be complete without an example.

A popular market in football is total goals. In fixed odds, you might back over/under 4.5 goals with a bet that either wins or loses and pays out at fixed odds. However, spread betting on total goals is different. The spread might be 4.85-5.15, and you either buy at 5.15 or sell at 4.85.

In fixed odds, if your stake is £10, that is the most you can lose. However, with spread betting, it is different. Let us imagine you fancy a thriller and so buy goals at 5.15 for £10. If you were right and the match ended 7-0, the make-up would be six. To calculate winnings, you deduct 5.15 from that and multiply by the stake. So you would win £18.50. Two goals would net you a small profit, and every goal after that is worth an additional £10.

However, what if you were totally wrong, and the match was a bore draw? The make-up of the market is zero. Therefore, you would lose 4.85 times your stake, or £48.50.

Popular Spread Betting Markets in Online Gambling

Different sports feature different markets. However, whether you bet at the best spread betting platform or any other, these are some of the most popular.

• Football – Supremacy, total goals, corners, bookings, and player goal minutes are very popular markets.
• Horse racing – Win index, favourite performance, and winning distance.
• Tennis – Supremacy, total games, total sets, and player games are all popular picks.
• Cricket – Supremacy, win index, team ton-ups, match sixes.

Many of these markets are unique to spread betting. They are simple enough to understand, though, and all sites offer a useful explanation of each market alongside the spread.

Pros and Cons of Spread Betting Online

Spread Betting vs. Fixed Odds Betting Online

Generally speaking, fixed odds betting is better for those who are new to gambling. It is simpler, more widespread, and it is easier to understand how much you might win and how much you might lose. However, for the more experienced punter, spread betting can offer incredible fun.

Spread betting is also a good option when watching sport because it makes things really exciting. A fixed odds bet on over 2.5 goals wins as soon as the match reaches three goals. However, with spread betting, the bet stays live, and each goal earns you more money. Equally, even at 0-0, a goal is not pointless as it reduces the amount you will lose.

Many ask, “Is spread betting tax-free in the UK?” This is where the two forms of gambling are identical, and all wins are free from tax. This is also a key difference between spread betting and CFD trading.

Ultimately, spread betting has remained relatively niche. However, as long as you make the small effort to understand it, it has a lot to offer punters who want to be rewarded for just how accurate their sporting predictions are.

Tips for Beginners

Read this guide and check out the information offered by the spread betting firms themselves. Many of the best spread betting bookies offer a range of tutorial videos. You should fully understand spread betting before you take the plunge. It is vital that you understand how each spread betting market works before you risk any money.

The most important spread betting tip is to start small. Spread betting firms allow very small stakes on some markets. This way, you can test any betting strategies you may have and also ensure you understand the wider concept.

Last, be very careful when betting on volatile markets. Make sure you understand how much you could lose. Where possible, set a clear stop loss too.

Conclusion

Spread betting is an exciting form of betting that is very different from “normal” fixed odds wagering. It can be high-risk, high-reward. As such, we only recommend it to savvy gamblers or those familiar with similar trading activities. However, it is not especially complex or hard to understand. Moreover, it can be an incredibly fun way to bet because your wagers generally keep you interested for longer. Also, the more accurate your predictions are, the more generously you’ll be rewarded.