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Section 5
IN-RUNNING BETS ON LIVE EVENTS
While events are in progress, you can take your winnings or reduce your liability on quite a lot of spread bets. You can also make a new bet on the outcome as the spreads keep changing.
The reason is that one team or competitor or statistic is doing better or worse than expected in an event, so the means to change the spread in relation to this, allows the companies to offer new opportunities to bet. It does not mean your original bets at the original spread are altered, but it does give you the choice of taking a profit that you might have already accumulated or cutting your losses on your original bet by getting out early.
Let us go back to the Favourites bet on the horses where the quote for the favs over six races was 68 - 72 prior to any race taking place. Now let's imagine a scenario where the first 2 races are over and the favourite has finished unplaced in both of them.
The spread betting company will change their margins, depending of course on their opinion of the chances of the next four favourites and the liabilities they might have.With only four races remaining, the maximum points available for the favourite is now down to 100pts if all four win, reducing as each one that runs fails to win. So the company might adjust their spread downwards to perhaps 43 - 47. They obviously change their spreads in-running after each race anyway - this is just an example of the fluctuation.
If you originally had a bet to SELL the favourite at 68 at £10 pt unit stake, and now the spread is 43 - 47, then if you want to you can stop your bet and take a profit. You don't have to worry about the other races.
To close (stop) your position at this time --- you reverse your initial bet by having a new one in theory --- you BUY at the new figure of 47 at the same unit stake. So in fact, you make a profit of £210. ---i.e. 68 - 47 = 21 pts. x £10.
If you originally bet to BUY at 72 at £10 unit stake, because you fancied the favourites to do well, you could either take a chance and let the horses run and hope they improve, or you can cut your losses. This is when you think that things might only get worse, and you want to close the bet. You now have to bet the other way --- that is SELL at 43 at your original unit stake of £10. You have lost money but it might have been a lot more ----- 72 - 43 = 29 pts. x £10 = £290 loss.
Cutting your losses or taking a profit are clever ways to monitor your bets, so it is best to be aware of them by checking which events and bets a company will offer these possibilities.
There is also another favourite bet that you can place in-running and this is called -- Laying the favourite.
Imagine you see a spread on the favourites of 51 - 55 at the time you check the quotes, say half way through the days or evenings racing. You have been studying the form of the next race, and you think the favourite has no chance in your opinion --- then you can have a bet on this -- by selling the favourite. --i.e. SELL at 51 at maybe £50 per point unit stake.
If the favourite doesn't win this next race, then the spread should drop. Mind you, the spread might stay the same if the favourite has finished 2nd or 3rd -- it depends on the view of the company. However, if the spread does go downwards to a new spread of 41 - 45, then you can close your bet after just one race and make a profit.
To close your bet --- BUY at 45 at the same unit stake of £50.
So calculate your bet --- 51 - 45 = 6 pts. x £50 = £300 profit.
Cutting a loss, taking a profit, betting in-running, laying a favourite. ----- These are available in all sorts of live events. Cricket, golf, horse racing and greyhounds are very popular sports for these bets because the events are over a long time. Cricket and golf last for 4 or 5 days and the conditions can change due to injuries, good or bad bowling or batting in cricket, and players having difficulty on the greens in golf etc.
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The following is a short list of some of the most used words in spread betting.
SPREAD --- the gap between the buying and selling price.
BUY --------- a bet made at the higher end of a quote. ( also known as 'going long' or an 'up bet')
SELL ------- a bet made at the lower end of a quote. ( also known as 'shorting' or a 'down bet' )
STAKE ----- the amount in currency (per point,goal,run,length,try,touchdown etc.), indicating the unit value.
MAKE-UP-- the figure used at end of an event to calculate bets if still open.
MAXIMUM MAKE-UP --- the maximum winnings or losses -- a specific value. (eg. 12 lengths max distance in flat racing)
IN-RUNNING --- a bet on an event that is still in progress.
OPEN BET ---- a bet which has not been closed(stopped), on an event still in progress.
CLOSING A BET --- an open bet can be closed while an event is in progress if there is a current quote for this event.
VOLATILITY ---- how much the make-up is likely to alter from the original quote. (high-- runs in cricket, low in goals in football)
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SECURITIES AND FUTURES AUTHORITY
The SFA is a body that regulates all spread betting companies.
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