SPREAD BETTING (part 1) .
Spread Betting is not for the faint-hearted. If you don’t understand it, DON’T bet in this media. If you do however want to try it out, bet in one of the Limited Loss Markets, until you’re happy with your progress. However CAUTION is the watchword.
Spread Betting started in 1974. A young unemployed stockbroker by the name of Stuart Wheeler had a brainwave that started people trading on gold prices. A short while later it extended to Foreign Currencies and Commodities. That you might say was the thin end of the wedge.
We must thank one Jonathan Sparke for bringing Spread Betting to the Sporting World in the not too distant past.
Spread betting has been around for some time. Only at earlier times it was applied mainly to Financial Markets. The idea being that you would bet whether stocks and/or shares would rise or fall over a given period. If you fancied they’d fall you would Sell. If you thought they’d rise you would Buy. The more right you were, the more you would win. On the other side of the coin the more wrong you were, the lighter your wallet would be.
This form of betting was and still is, regulated by the Financial Services Authority. Spread betting on sport also comes under their umbrella.This means that there is a fair amount of red-tape involved in opening an account with the companies that accept this type of wager. However having the F.S.A. is a free form of insurance.
The idea being that you must prove who you are and where you live. With suitable documents. This is to ensure that you’re not a terrorist about to launder your winnings for the benefit of God knows who? You will probably be asked for an upfront payment. A DEPOSIT. I did warn about red-tape. So having proved that you’re a bona-fide sportsman with no evil intent what will you find? A cornucopia of bets to whet your appetite and empty your wallet, if you’re not careful. I have it on good authority that over 100 "markets" can be offered on One football match. How’s that for variety?
With this type of betting you’re putting your money where your mouth is. So it’s important to know where you’re going and how you’re getting there. In other words you must plan ahead and keep a weather eye on your finances, betting wise, at least. Don’t try to chase losses and don’t bet on impulse. Fancying a team or backing one because it’s "due" is definitely not for this type of betting. You’re never certain how much you’ll win or lose before the match ends. Returns can change on, the issuing of a card, a corner being given and of course a goal being scored. It can be a real White Knuckle Ride. So if you decide this is for you, Blackpool’s Rollercoaster will seem tame by comparison.
In Spread Betting the bookie sets the odds or the SPREAD within a range which he hopes will be profitable to him, no matter how many punters are right.
The opening spread may be 46 to 52. In effect the bookmaker is saying the result will be within this range. You have to decide how wrong he is. If your opinion is that the spread won’t make up to 46 then you bet LOWER/SELL If you think he’s underestimated the spread the other way, then you back HIGHER /BUY. You can only back within the range offered. In many cases the spread may be changed "in play" in a similar fashion to the Betting Exchanges. This gives you the opportunity to Close at a profit, or if it’s not going your way, to try to salvage something from your original bet.
Let’s assume that you’ve chosen to Sell and you’ve bet at £1 per point. The bet "make-up" at 38 . You win. £8. The difference between the bookies lower spread figure 46, and the final make-up figure. However had the final figure been, say, 55 you would have lost £15 .(You sold at 40 and the make-up was 55). In other words you either win or lose, the figure made up from the difference between the outcome and the bet. The "spread" between the Sell and Buy figures is the Bookies "edge".
The various markets are so many and varied that they deserve at least one article to themselves [to be continued …]
