Spread Betting: 2020 A Beginner's Guide

Ever fancied placing a spread bet? Here we demystify the art of spread betting with a beginner's guide to placing your first bet with our friends at Spreadex.

Spread Betting: A Beginner's Guide

Let’s start by understanding what spread betting is…

Essentially spread betting allows you to bet on your favourite markets like you do on fixed odds bets – the difference is, you can win more (or lose more) by being more accurate (or not).

For example, In a football match, Spreadex may forecast that there will be 3 goals in a game (similar to a sportsbook offering Over/Under 2.5 Goals).

If you disagree, Spreadex will give you the opportunity to bet on there being Under or Over 3 Goals in a slightly different way than a regular sportsbook. They’ll give you the chance to ‘SELL’ at 2.9 goals or to ‘BUY’ at 3.1.

Simply put, ‘selling’ at 2.9 means you think there’ll be fewer than 3 goals. ‘Buying’ at 3.1 means you think there will be more than 3 goals.

The 2.9 – 3.1 range is known as ‘the spread’ from where the name of this genre of betting derives from. Let’s look at a few scenarios.

Betting On Over 3 Goals

You think there will be more than 3 goals therefore you ‘buy’ at 3.1 for £20.

Outcome A – 5 goals are scored

You would win £38.

Here’s how… You bought at 3.1 and 5 goals were scored, therefore the difference is 1.9 in your favour (5 – 3.1). You then multiply 1.9 by your stake (£20), giving you £38 in profit.

Outcome B – 2 goals are scored

You would lose £22.

Here’s how… You bought at 3.1 and 2 goals were scored, therefore the difference is 1.1 against you (3.1 – 2). You then multiply 1.1 by your stake (£20), resulting in a £22 loss.

Outcome C – 3 goals are scored

Because the spread was set between 2.9 goals and 3.1 this means that this was Spreadex‘s expected outcome. However, you would lose only £2 (3 – 3.1) x £20).

Betting Under 3 Goals

Alternatively, you may think there will be less than 3 goals so you ‘sell’ at 2.9 for £20.

Outcome A – 1 goal is scored

You would win £38.

Here’s how… You sold at 2.9 and just 1 goal was scored, therefore the difference is 1.9 in your favour (2.9 – 1). You then multiply 1.9 by your stake (£20), giving you £38 in profit.

You will also get your £20 stake back.

Outcome B – 4 goals are scored

You would lose £22.

Here’s how… You sold at 2.9 and 4 goals were scored, therefore the difference is 1.1 against you (4 – 2.9). You then multiply 1.1 by your stake (£20), resulting in a £22 loss.

Outcome C – 3 goals are scored

Because the spread was set between 2.9 goals and 3.1 this means that this was Spreadex‘s expected outcome.

However, you would lose only £2 (2.9 – 3) x £20).