With Spread betting, in standard fixed odds you are either right or wrong and you lose or win an amount set on that basis. In spread betting you have to predict if an outcome is going to be smaller or bigger than the bookies think and you get rewarded more the more you are right on any outcome. But know that you also lose more the more you are wrong about an event and outcome.
Now, a spread is a range of results which the traders think are the most probable outcome in any event. A spread is normally presented as two numbers with a hyphen in between. For example, the spread for Manchester United points in a Premiership season might be 80-82.
The spread betting firm traders must decide what they think the most likely outcome of every market and event will be. This is a lot of work because there are many markets, some of them are quite specialized.
Now, when the most probable outcome finally has been determined the traders have to build a safety margin around that likely outcome which is normally between 2% and 10% of the likely outcome, depending on the market and the event.
If you think the spread the traders have created is getting smaller than the probable outcome you will want to buy on that spread. For each goal or point any other that goes over the spread you win your unit stake. Although, for each point, goal or other unit going under the biggest outcome in the spread you will finally lose your unit stake.
The max you can win just a mere 2.2 times your unit stake but there is no limit on how many goals can be scored in the match so you cannot predict your maximum loss. Despite the fact that less people tend to sell spreads than buy spreads, it may well be easier to find a value spread bet as a seller. Beware that the risk can be higher but if you are clever you may find some markets where you can make money by opposing all the buyers.
Now, if you think the spread the traders have created is bigger than the likely outcome you will want to sell on the spread. Each point, goal or other unit that the real outcome is under the spread you will win your unit stake. For each point, goal or other unit the real outcome is over the lowest outcome in the spread which you will lose your unit stake.
