SPREAD BETTING
Section 1 - Introduction
It is another way to bet on the outcome of things. How many things can you think of that you could have a bet on? What time will it rain tomorrow?
Spread betting companies select something to bet on ---- football, cricket, a horserace etc., and they weigh up each event themselves. They try to judge the outcome, not only on the result of an event, but other things that might happen during the event. After much studying, the company will decide what they think is the likely outcome and take this as their position in the event, and then offer bets either side of this position.
Obviously it isn't an exact science, so they give themselves some leeway. This leeway in their position is called the Spread. You could say, it is the middle ground, but it doesn't necessarily have to be in the middle.
The idea was based on how stocks and shares fluctuate in the stock market. Some broker might have said -- 'I bet that 'particular' stock will go down in price in the next hour'. Another said it will go up and yet another might have said that the price won't change. So they probably had a bet on it between themselves. This idea was then expanded upon and developed into what is now called Spread betting.
You can bet that something will do well, or you can bet on it doing badly --- the choice is offered to you in spread betting.
The companies offer a huge choice of bets, even on a single event. One of the first sports they became interested in was cricket because of the wide range of possibilities in a cricket match.
How many runs will a team score? How many wickets will a bowler take in the match? What will be the total runs in an opening partnership?----- Most spread bets are based on totals. Also they take bets on the winning margin in events where the result is obvious. You can bet on a match between two players in a competition, disregarding all the other players. Bet in-running on live events, where you can stop a bet and take your winnings(profit), or cut your losses at that time if your original bet is not doing well. You don't have to lose all your money waiting for the final result, you can get out early with a loss.You can even open a new bet while the event is in progress.
The list of bets, especially in sports, is growing all the time. Before I show you examples of spread betting, I will give you information on some of the types of bet available in different sports.
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HORSE RACING
Aggregate winning distance ----- Total winning distances of all races on the day at a meeting, added together.
Aggregate winning SP's. ---Total of winning starting prices for each race at a meeting, added together.
Match bets ----------------------One horse against another in a race, regardless of where they actually finish in a race. The distance between these two in lengths or part of a length being the match.
Favourites ----------------------A performance index for all the favourites at a meeting. Points are awarded for finishing 1, 2 or 3.
Racecard numbers ----------Spreads on what the winning racecard numbers are -- 'totalled together' -- at a meeting.
Racecard No. '1's. -----------A performance index for how well the number --'1' -- on the racecard will do.
Jockeys indices --------------Performance index on how well jockeys get on at a meeting.
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FOOTBALL
Totals of :-
- Goals in a game, or in a tournament
- Corners
- Shirt numbers of scorers
- Minutes of goals added together
Time of :-
- 1st goal
- 1st home goal
- 1st away goal
- 1st booking
Supremacy --------------------Which team has most of play in % terms.
Supremacy --------------------Which team has supremacy in goal terms.
Hotshots -----------------------Index on performance of named group of players in game.
Bookings ----------------------Perf index on yellow and red cards given in a match.
Multi-corners ----------------Based on home x away corners.
Team performance ----------Index based on win, draw, goals, corners, bookings of team in a match plus other alternatives. These vary as per company.
Group indices -----------------Finishing positions of teams in a league based on points for 1st, 2nd, 3rd etc.
Tournament index -----------Points for 1st, 2nd, semi-finals,qtr-finals etc.,in a competition.
Points in season --------------Spreads on total points for each team.
Golden boot index -------------Points for highest goalscorer in a tournament.
There were over 200 different types of spread bets on football in the first week of the Euro 2000 competition.
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CRICKET
Totals of :-
- Runs by a team in an innings.
- Runs by a named batsman.
- Wickets taken by a named bowler.
- Catches taken in a match.
- Opening partnership runs.
Match bets :-
- Between two batsmen.
- Between two bowlers.
- Between teams in a series.
Group indices ----------------Points for positions in leagues.
Tournament index ----------Points for 1st, 2nd, semis, qtrs etc., in knockout competitions.
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MOTOR RACING
Totals of ------
- Drivers points in a championship.
- Number of laps completed by a driver in a race.
- Number of finishers in a race.
- Winning margin in seconds.
Race indices ------------------Points for position on podium. 1, 2 or 3.
Multi-cars ---------------------Position of a teams cars multiplied.
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RUGBY
Totals of :-
- Points scored in a match.
- Try scorers shirt numbers added together.
- Number of scrums in a match.
- Championship points in season.
Supremacy --------------------Which team has supremacy in points scored.
Tournament index -----------Points for 1st, 2nd, semis etc.,in competitions.
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AMERICAN FOOTBALL-NFL
Totals of :-
- Points in a game.
- Yards--Passing.
- Yards -- Rushing.
- Shirt numbers of players scoring touchdowns.
Performance indices -------Positions in divisions.
Finishing positions in play-offs.(eg.Super Bowl)
Supremacy --------------------Which team has supremacy in points terms in a match.
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GOLF
Totals of :-
- The finishing position of a player in a tournament.
- Numbers of pars made in a round, or a tournament.
- Number of putts made on the green by a player in a round or a tournament.
Match bets --------------------One player against another in a round.
Supremacy --------------------One team v another in a competition.(eg. Ryder Cup)
Tournament indices ---------Positions of players or teams as points for 1st, 2nd etc in knockout competitions, Majors, Opens etc.
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TENNIS
Totals of :-
- Numbers of tie-breaks in a match.
- Number of tie-break points in a competition.
- Number of matches going to 5 sets in a competition.
Match supremacy -----------Margin of victory of one player against another,in games won.
Tournament index ----------Points for final positions-1, 2, losing semis, qtrs, etc.
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BOXING
Total of --------Time in minutes that fight will last.
Supremacy ---Points awarded for one fighter against the other.
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GREYHOUNDS
Total of ----------Aggregate winning trap numbers at a meeting.
Multi-Mutts ----Aggregate total of multiplied forecasts at a meeting.
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Other sports are also covered in spread betting, including snooker, darts, athletics and no doubt many of the Olympic sports will be looked at.
Sports are not the only things that these companies offer bets on. Some offer spreads on Futures. A few examples are the FTSE 100 index, Nasdaq, Wall St. index, the Nikkei Dow 225. They offer spreads on Government bond futures, Currencies, Precious metals, and on Commodity futures. So if you wanted a bet on the price of orange juice or pork bellies fluctuating then some of these spread betting firms will accomodate you as long as you have the money to play.
Also there was a big market for spread betting in the general election, where quotes were offered on the amount of seats won by each party, the winning margin, percentage of the vote, etc.The possibilities of winning large sums or losing equally large amounts of money on an event like a general election should lead you to try and understand how spread betting actually works --- its dangers as well as its good side.
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