Spread betting encompasses a number of different forms of betting on the results of an event in which the pay-off depends on how accurate your predictions were rather than a simple straight bet based on a win/lose outcome which is offered at fixed odds.
This kind of betting is called spread as the spread refers to a range of possible outcomes. The bookmaker will offer a spread and you then decide whether you think the outcome will be greater than the spread or less than it.
If you believe that it will be greater, then you ‘buy’ and if you think it will be less then you sell. If you sell your winnings will be a function of how greater than the spread the outcome is, and if you buy then the opposite will be the case.
The major thing that you should be aware of is that with spread betting there can be a substantial leverage. That means that whilst you can win much more than you would if the outcome is considerably greater or lower than the spread, you may also lose much more money too as your losses are increased by the same factor as are your winnings.
In order to control the risks many spread betters use stops, which limit your potential losses (and of course winnings) to pre-determined amounts.
Spread betting is appropriate to a huge range of sports and some of the most popular spread being markets include football and cricket. Spread betting is not just limited to sport; if is very much used in financial markets too.
One of the best ways to try your hand at spread betting is to utilise some of the many free betting offers that are currently available online. This way you minimise any potential risk whilst you learn the ropes. Spread betting is one of the most interesting ways to bet and certainly it is worth giving it a go.