High Risk Level Of Spread Betting System Explained

It is a well-known and accepted fact that spread betting holds the highest level of risk among any other type of gambling method. You have probably asked yourself, “why is this so?” Betting the spread is a relatively simple way of wagering, but the high risk level comes from the possibility of gaining or losing huge amounts of money. For novices who are unfamiliar with the different betting strategies available, we will try to illustrate here how that works.

A very simple type of gambling strategy is betting to win, wherein the winner of the bet is the person who accurately predicted the winning team or player in a game. Let us take for example that a group composed of five people watched a basketball game between the LA Lakers and the NY Knicks. 3 of them are in favor of the Lakers to win and the other 2 predict that the Knicks would prevail. Assuming that they wagered $10 each, the pot would then amount to $50. If the Lakers won, the pot would be equally divided to the 3 individuals, thus $50 ÷ 3 = $16.67, a $6.67 profit from the original $10 bet. On the other hand, if the Knicks won, the pot would be divided to the 2 Knicks supporters, thus $50 ÷ 2 = $25, a $15 profit from their original $10 bet. In both cases, the losing individuals would just lose the amount of money initially wagered.

In spread betting, it is not enough that you predict that a team would win or lose, but also accurately determine the disparity or “spread” between the points. The spread is usually based on a quote determined by a particular sports book or bookmaker. Let us take the following as an example:

Sport: Football Premier League Quote: 90-93 points
Match: Man U vs. Chelsea Bet: $10 per point
Market: Total number of free kicks

The quote refers to the “spread” or figure predicted by the bookmaker to be the total number of free kicks made by the two teams in the game. The “buy” point refers to the higher number, 93 in this case, and the “sell” point refers to the lower number, 90 in this example.

• “BUY” means you predict that the free kicks would be more than 93 points.
o Final score is 98 points, 5 points HIGHER than your buying point.
Your prediction was RIGHT. 5 pts x $10 = $50 PROFIT
o Final score is 83 points, 7 points LOWER than your buying point.
Your prediction was WRONG. 7 pts x $10 = $70 LOSS
• “SELL” means you predict less than 90 points of total free kicks.
o Final score is 98 points, 8 points HIGHER than your selling point.
Your prediction was WRONG. 8 pts x $10 = $80 LOSS
o Final score is 83 points, 7 points LOWER than your selling point.
Your prediction was RIGHT. 7 pts x $10 = $70 PROFIT

In the examples given above, it can be clearly seen how betting the spread is a more risky venture. The first case showed that a wrong prediction would just mean losing the same amount of money originally wagered, while the second case showed a remarkably huge amount of loss for a wrong prediction. On the other hand, only a skimpy profit was made in the first case as compared to the second case, wherein a huge amount of profit was gained by correct predictions.

By: Angela Bryant

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Spread Betting is increasingly gaining popularity in the betting world. Visit www.freebettingonline.co.uk/spread-betting/ to get more information.