Horse racing spread betting explained that

Take for example a football match where the wager is to determine the number of goals scored. Say the event is England versus Brazil and the spread betting company predicts that 3 goals will be scored. It can be seen that the more goals scored the more the gambler may lose - so in that respect spread betting is more high risk.

However it is usually possible to limit the losses with a "stop loss" ie the gambler can set a maximum loss and the bookmaker may limit his liability with a "stop win". Spreadex is a leading sports spread betting company - have a look at their "How To" video: Here are some more Spread Betting Tips By far the largest market for spread betting is in the financial markets however there is a growing interest and knowledge for online spread betting in sport.

In this article I shall be exploring spread betting tips in horse racing. Typical wagers would include Starting Price of the winners Favourite's performance Jockey's performance example Spread betting tips which concern the distance separating 2 horses as they cross the line, Winning distance are known as Match Bets. The more fancied horse is listed first and the less fancied second, known as a supremacy market.

Take for example June 2nd Kempton 6. The Racing Post results show the distance between each horse finishing the race and the distance between the two was But if the team only scores runs then the gambler will have lost 50 unit points multiplied by their initial stake. It is important to note the difference between spreads in sports wagering in the U.

In the U. In the UK betting above or below the spread does not have a known final profit or loss, with these figures determined by the number of unit points the level of the final outcome ends up being either above or below the spread, multiplied by the stake chosen by the gambler. For UK spread betting firms, any final outcome that finishes in the middle of the spread will result in profits from both sides of the book as both buyers and sellers will have ended up making unit point losses.

So in the example above, if the cricket team ended up scoring runs both buyers at and sellers at would have ended up with losses of five unit points multiplied by their stake. This is a bet on the total number of points scored by both teams. Suppose team A is playing team B and the total is set at If the final score is team A 24, team B 17, the total is 41 and bettors who took the under will win.

If the final score is team A 30, team B 31, the total is 61 and bettors who took the over will win. The total is popular because it allows gamblers to bet on their overall perception of the game e. Example: In a football match the bookmaker believes that 12 or 13 corners will occur, thus the spread is set at 12— A "sell" transaction is similar except that it is made against the bottom value of the spread.

Often "live pricing" changes the spread during the course of an event, increasing a profit or minimizing a loss. In North American sports betting many of these wagers would be classified as over-under or, more commonly today, total bets rather than spread bets. However, these are for one side or another of a total only, and do not increase the amount won or lost as the actual moves away from the bookmaker's prediction.

Many Nevada sports books allow these bets in parlays , just like team point spread bets. This makes it possible to bet, for instance, team A and the over, and be paid if both team A "covers" the point spread wins by that amount or more and the total score is higher than the book's prediction.

Such parlays usually pay off at odds of with no commission charge, just as a standard two-team parlay would. Mathematics[ edit ] The mathematical analysis of spreads and spread betting is a large and growing subject. For example, sports that have simple 1-point scoring systems e. Financial spread betting[ edit ] By far the largest part of the official market in the UK concerns financial instruments; the leading spread-betting companies make most of their revenues from financial markets, their sports operations being much less significant.

Financial spread betting in the United Kingdom closely resembles the futures and options markets, the major differences being the "charge" occurs through a wider bid—ask spread ; spread betting has a different tax regime compared with securities and futures exchanges see below ; spread betting is more flexible since it is not limited to exchange hours or definitions, can create new instruments relatively easily e.

Financial spread betting is a way to speculate on financial markets in the same way as trading a number of derivatives. In particular, the financial derivative contract for difference CFD mirrors the spread bet in many ways. In fact, a number of financial derivative trading companies offer both financial spread bets and CFDs in parallel using the same trading platform. Unlike fixed-odds betting, the amount won or lost can be unlimited as there is no single stake to limit any loss.

However, it is usually possible to negotiate limits with the bookmaker: A stop loss or stop automatically closes the bet if the spread moves against the gambler by a specified amount. A stop win, limit or take profit closes the bet when the spread moves in a gambler's favor by a specified amount. Spread betting has moved outside the ambit of sport and financial markets that is, those dealing solely with share, bonds and derivatives , to cover a wide range of markets, such as house prices.

Additionally, by avoiding the favourite-longshot bias , where the expected returns on bets placed at shorter odds exceed that of bets placed at the longer odds, and not betting with one's favorite team, but rather with the team that has been shown to be better when playing in a specific weather condition and time of day, the possibility of arriving at a positive outcome is increased.

Tax treatment[ edit ] In the UK and some other European countries the profit from spread betting is free from tax. The tax authorities of these countries designate financial spread betting as gambling and not investing, meaning it is free from capital gains tax and stamp duty , despite the fact that it is regulated as a financial product by the Financial Conduct Authority in the UK.

Most traders are also not liable for income tax unless they rely solely on their profits from financial spread betting to support themselves. The popularity of financial spread betting in the UK and some other European countries, compared to trading other speculative financial instruments such as CFDs and futures is partly due to this tax advantage.

However, this also means any losses cannot be offset against future earnings for tax calculations. Conversely, in most other countries financial spread betting income is considered taxable. For example, the Australian Tax Office issued a decision in March saying "Yes, the gains from financial spread betting are assessable income under section or section of the ITAA ".

This has resulted in a much lower interest in financial spread betting in those countries. Financial spread bet example[ edit ] Suppose Lloyds Bank is trading on the market at p bid, and p offer. A spread-betting company is also offering p. We use cash bets with no definite expiry , or "rolling daily bets" as they are referred to by the spread betting companies.

We use the offer price since I am "buying" the share betting on its increase. If a bet goes overnight, the bettor is charged a financing cost or receives it, if the bettor is shorting the stock. The punter usually receives all dividends and other corporate adjustments in the financing charge each night. For example, suppose Lloyds Bank goes ex-dividend with dividend of The bettor receives that amount.

The exact amount received varies depending on the rules and policies of the spread betting company, and the taxes that are normally charged in the home tax country of the shares. Terminology and acronyms[ edit ] High of day the highest price the market traded at for the day.

Intraday trader A trader operating from within each day's trade times.

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Each favourite is awarded a certain amount of points. So with the allocation of points, a spread is created and essentially what punters will do is buy if they feel the horse will win, or sell if they think it won't. A real twist from traditional betting is that you can bet on the jockeys.

The way jockey betting works is pretty much the exact same way as the favourite's index, with the only difference being that you are betting against a quote of how great a race or more than one a jockey will have. Predicting Winning Distances Will Pocket Cash Too Similarly, the winning distance index is played in essentially the same way but with a slight difference, as points are awarded based how much you think a horse will win by.

Typically the going of a racecourse affects what the spread and points allocation will be for distance betting, and this is where the bookies can really earn their corn. Poor judgment of how the conditions are going to affect a race could cost the bookies thousands, so they have to get it right. In my opinion, spread betting on horses involves too much work. That is not to say that I am lazy, quite the contrary, but there are multiple factors and several key things that have to be considered properly even before you consider looking at what to back.

I do prefer a more simplistic approach and perhaps this is why I have done well, as I have kept it simple. I'm also a firm believed in effective money management, and unlike traditional betting, or even betting on the Tote, you do not know how much you stand to lose with spread betting, until the race is over and then its possibly too late.

However like any other form of gambling, this too can be highly negative in yields and thus one should play only moderately, according to the financial resources you have. Spread Betting Explained The game in general, is meant to be enjoyed and can yield an exciting time when played with someone educated in basics.

Like all other gambling games spread betting too has its own historical background. Spread betting evolves from the basic qualities of gambling, placing money on the outcome and win or lose depending on that outcome. The uncertainty of winning or losing is the very reason for the addictive nature of this game. While in other forms of gambling win or loss depends on the outcome of one game, in spread gambling you may potentially win no matter what the final score.

The actual numeric outcome of the game or market has no effect on you win or lose. You will win or lose as long as you bet correctly in the higher or lower margin of the outcome. Much like other forms of betting, spread too has some bets, which are more popular then others.

Some of the most wide spread betting occurs in Europe, where the well spread soccer circuit provides exciting games amply throughout the year. However with so many sports and competitions to bet on, it is hard to pin point any one form as the most popular focus. Besides games spread betting is particularly active on the financial market as well. People spread bet on the financial markets in hopes of increasing their income or making up for the losses.

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