This page is helpful to everyone who would like to understand spread-betting. The bookmaker and mathematics professor Charles K. McNeil developed a new betting variant in Chicago in the 1940s: spread bets. This is about betting on a difference in a certain outcome.
In the meantime, spread-betting has firmly established itself in the various betting options in the sports sector. This type of bet is particularly popular in America, the country of origin, and in Great Britain. The principle of financial bets has been implemented 1 to 1.
Spread-Betting – Explanation and Definition
The term spread comes from the English and means difference. Spread-betting is a bet on the difference between the target and the actual result. The betting odds are calculated from this: the greater the difference, the higher the odds and thus the profit or loss. There is no fixed quota for placing bets. Only the maximum gain or loss that can be achieved can be calculated in advance.
Spread bets originally came from the financial sector. There, the spread is the difference between the buying and selling price of a security. A spread always consists of two digits: a minimum rate and a maximum rate (here you can find the odds comparison on sportwettenvergleich.net). You can now speculate on whether the odds on a certain date will be above or below this number.
This is how spread betting works
The betting provider thus sets a certain range through the maximum and minimum quota, which describes the outcome of the sporting event on which the bets are made. The bettor speculates with his bet placement whether the result is above or below the range set by the bookmaker. If the prediction of the tipster agrees with that of the bookmaker, no bet is made.
A spread bet is therefore the assessment of the weather on the result or an event of a sporting event, for example on a certain number of points, goals, yellow cards or fouls. If your own tip is outside the betting provider's range, the so-called limit, a tip is made.
If the odds are higher than the limit set by the bookmaker, the profit or loss will be calculated as follows:
• Sum above = bet winnings = stake times (sum of actions minus upper limit)
• Sum below = bet loss = stake times (upper limit minus sum of actions)
If the typed value is below the range of the bookie, the calculation is done the other way around:
• Total below = bet winnings = stake times (lower limit minus sum of promotions)
• Sum above = bet loss = stake times (upper limit minus sum of actions)
Betting on the number of goals
In soccer games, betting is very common on the number of goals. In our example, the bookmaker's spread is 2.4 to 2.7 goals. Now the tipper can bet that fewer than the bookmaker's 2.4 goals or more than 2.7 goals will be scored. If he is betting that fewer than 2.4 goals will be scored in the game, a stake of 10 euros results in a chance of winning 24 euros or a maximum loss of 50 euros.
The game actually ends 2: 1. As a result, three goals were scored and the bet was lost. In this case the loss is 3 minus 2.4 = 0.6 times 10 euros = loss of 6 euros.