About Sports Spread Betting | What is spread betting?
With spread betting, by predicting if the bookie have it right or wrong, the more right you are the more you win. With no deductions (the bookies cover all the taxes!) all the winnings are yours. You don’t even have to be exactly right, either as long as you are in the right direction, you will make a profit.
It’s actually quite easy……as always an example is the best way to explain. Lets take a match between Leeds v Newcastle. Sporting Index may make Newcastle favourites to beat Leeds by 0.2 – 0.5 goals, and would be presented like this:
Therefore Sporting Index is predicting a small Newcastle win by 0.2 – 0.5 goals. If you think Newcastle will win you would go high (BUY) at 0.5 for £10 per goal. Predict a draw or Leeds win? You want to go lower (SELL) at 0.2 for £10 per goal.
How do I calculate my winnings?
If Newcastle won the game 4-1, their wining margin (make-up) would be 3 goals. Had you bought at 0.5 at £10 per goal you would have won 2.5 times your stake.
Stake * (winning margin – predicted win) = £10 * (3 – 0.5) = £25 gain.
However, if Leeds had won 2-0, the same bet would have lost you 2.2 times your stake.
Stake * (-2 – 0.2) = £10 * -2.2 = £22 loss.
It sounds risky?
Naturally with spread betting there is a greater risk than at the normal bookies. You can close your account at any time until the end of play on live ‘In-Running’ markets, which allows you to take a profit, or cut a loss.
You can also open a limited risk account (know at Sporting Index as a Shield account). This offers you all the thrills of an ordinary spread bet with the added security of limited exposure. In effect a Shield Account offers you the chance of Spread Bet with a safety net. See out types of accounts page for more details.
We’d advise to be careful and make sure you understand how the spread is calculated before placing any bets.