Financial Spread Betting News Information Tips

Betting Advisor asked:




Sport Spread Betting

The concept of betting on sports is not new. It is as old as sports are. The ways of betting have changed over a period of time. Now-a-days, financial spread betting is very popular with new investors in the market. Young and enthusiastic investors are thrilled about sports. And, they want to bet on them all year long. There are numerous people crazy about soccer and cricket and other sports and their thrill becomes real when they start betting on these sports. This concept of betting is considered to be new because now it is done in more organized manner and is a well known term all across the globe.

In case of a sport, one can bet on the difference of the scores between two teams playing against each other. There are values specified by the bookmaker and loss and profit of many people is dependent on the difference of the spread specified. In case of betting, a bookie can make a prediction of a spread and people can start betting on it. The concept of betting through spread in scenarios of sports is same as that of betting through spread in financial market. The only difference is that unlike sports betting with a spread, in financial betting with a spread there is no bookie predicting a spread. Sport Spread Betting

Talking about differences between these two types of betting through a spread, one major point of difference is that in case of betting there is a particular event or a sport with a pre-known duration. Once an individual puts a bet on sports, he can not change it. However in case of financial spread betting there is a basic indefinite period till when an individual can put bets on. One can also make a choice of period when he wants the bet period to end. There are many spread betting companies in the market. They can choose from various events to start betting on. As we all know, a bet can be put on anything under the sun. One can bet on, will it rain tomorrow? Who will win the president’s seat? Will next movie of a particular star do a certain amount of business or not? Etc. The range is wide. With so much of variety to choose from spread betting is an interesting thing.

In case of sports betting, the sports enthusiasts are more involved as they understand the sport well. Like financial betting, in case of sports spread betting also people bet on various outcomes of a particular event. The only difference is that this particular event is of limited duration and specific sports. In this scenario also, initial knowledge of the sports, players and other things which can impact the sport is essential to be a winner. There is lot of choice for bets and companies involved in these bets ensure to make the sport more thrilling with the help of various bet events. So, have you started or you are still waiting? Do you want to bet on this? Sport Spread Betting



Monica

Shaun Parker asked:




Spread betting is used mostly either in sports or in the stock market, and while it is a complicated method of gambling at the best of times, the simpler of the two is sports spread betting. The reason people deal with spread bets on sports games and events is mostly that traditional bets like this team loses and that team wins can be boring and often fairly obvious given team rankings.

What do you do when a major league team is pitted against a low ranking wildcard team? The obvious choice is that the former will win, but if everybody bets that way then the fun is gone and the profits are pretty much sunk for all the winners. To alleviate the tedium of such situations, the spread bet has taken over bookmaker’s lounges.

What is a spread bet?

In simple terms spread betting is focused on the difference in points between the winning and the losing team in any sport. If you bet that Team A wins over Team B, you are actually taking the odds from the bookmaker and stating that the first team will win by a certain number of points. This difference in point totals is the ‘spread’, and the closer you are to the exact point spread the more money you will win. What determines the spread bet are the odds, given by your bookmaker. The bookmaker decides what the spread will be and you must work within those limits to determine your own bet.

If the bookmaker gives the spread as 4, and you bet on the underdog, you are basically betting that your team will have a point total that, when added to 4, is more that the other team. With this method, it doesn’t matter if the team you bet on doesn’t actually win, because the spread is always included in their score. The reverse is true if you bet on the favoured team. If you place your bet on the team that was given the bets odds of winning, you will only win if their score minus the spread (4) is still more than the other team. This is called either taking or giving the spread, respectively.

Another part of sports spread betting is the ability to bet on specifics – you can secure your point spread as being the final score, or the score after a particular inning, quarter or half of the game. Some bookmakers will let you include amendments to the bet like a certain player will go out early or the losing team will go on to win at national level.

The point of the spread bet is just to add some intrigue to the game when a simple win/lose/draw bet is too boring to even consider. Apart from this, you also stand to lose and gain a lot more money than you can with traditional bets. So beware! It’s more exciting, but you’d better have the money to back it up!



Juanita

Ben Catt asked:




Financial Spread Betting (or Trading) offers a tax free method of speculating on financial markets.

Quite simply, if you think a particular index, share, commodity, currency or sector will rise, you place an UP bet. This also referred to as a Long position or a buy.

On the other hand if you think the particular market will fall you place a DOWN bet (commonly referred to as a Short position or a sell).

The amount of profit you make or money you lose depends on how right or wrong you were and how much you risked per point.

At the time of placing the bet you decide how much you would like to risk per point. This can be as small as ?0.01 or a large amount such as ?1000+.

Most bets work on either a daily, rolling or contract month basis.

A Daily bet is one which is only open during one particular trading day. You could place the trade at 11am and, if you do not close it beforehand, it will be closed at the end of trading (4.30pm in the case of the FTSE 100).

A Rolling bet is one which, unless you state otherwise, rolls through to the next trading day. This costs a little money and your bookmaker should be able to give you more details.

A trade opened for a particular Contract Month will end up to 3 months in the future. There will be a specific date when the contract finishes known as the Expiry Date or Last Trading Day.

For example: if you opened a trade on the FTSE 100 September contract, the expiry date will be in September, usually the third Friday. The trade will expire at the close of trading on that day.

Some bookmakers also run other types of bets such as weekly and also “Year End”.

Day-traders or “scalpers” will tend to use Daily or Rolling bets but as a beginner it may be wiser to trade over a longer time frame.

If you decide to day trade, bear in mind that you must be correct almost immediately to profit. If you select a longer time scale, you have some breathing space for the trade to turn around.

An example of a trade

It is June and the FTSE 100 is trading at around 5000 and you are confident that it will go higher before September. To back your opinion you decide to use a spread bet.

Logging onto your internet account, the bookmaker quotes you 5010-5020 for the FTSE 100 September contract.

This means that you can buy (go long) at 5020 or sell (go short) at 5010.

Spread betting quotes are always displayed as two seperate prices. You buy at the higher price and sell at the lower one. The “spread” itself (in this case 10) is a charge added by the bookmakers. Different companies have different spreads, some larger than others.

As you are backing the market to go higher, you would buy ?1 a point (or however much you like) at 5020.

September arrives and you are close to the expiry date for the contract.

Rather than wait for the last trading day you decide to take your profit as the FTSE 100 is now quoted at 5305-5315.

You close your position by selling ?1 per point at 5305.

As you were correct in thinking the FTSE would rise, you have now won ?285:

(5305 – 5020) x ?1 = ?285 tax free

There is no need to hold your position until expiry, you can close it at any time to take your profit or limit your loss.

If the FTSE was trading at 5500 in July, you could have closed then for more profit. All you have to do is log into your account and place another trade in the opposite direction for the same amount per point to close.

Of course, if the FTSE had gone lower in this example you would’ve lost money but you can use stop losses to limit the loss.

Raul