Revealed: how to make money from spread betting
All the cool kids are doing it, why not join them?
We’re more than partial to spicing up a neutral game with a punt, and have found that one of the best ways of doing this is via the fine art of spread betting. It’s not nearly as complicated as it looks on the surface, and in it’s simplest form it is simply a game of higher or lower – a bit like Bruce Forsyth’s Play Your Cards Right, but without the old man, over-sized playing cards and impossibly attractive hostesses.
The Spoiler wanted to let you all know a little bit more about spread betting, and to give you a reason to click on all our wonderful ad banners (HINT!), so we asked our friends at Sporting Index to explain a little bit more about it…
How to spread bet
The first thing a spread betting punter must consider before betting on any event is where the ‘spread’ is pitched. The ‘spread’ is the range that covers the point at which a punter can bet lower (sell) to that at which he can bet higher (buy). Here’s a simple example of how spread betting works…
A man can see a field in the distance and asks the farmer how many sheep are in the field. The farmer isn’t sure, but guesses somewhere between 52-55 sheep. This is the spread and the man must decide whether he thinks the farmer has pitched his prediction too low or too high. He decides that there must be more than 55 so buys (bets higher) at that figure. When they get to the field they realise that there are actually 72, which means the man has made a profit of 17 times his imaginary stake (72-55=17).
This sounds very simple and it really is. Learning how to spread bet is purely working out whether you want to go higher or lower on the predicted figure. But why should people bother, when they can simply go down to their local bookies?
Why should you spread bet?
Every great sportsman, politician and academic always has many more than one string to their bow. Playing the spreads is a vital part of your betting armoury and with disciplined decisions, you can reap the rewards. Here are just some of the reasons why you should give it a go…
Win more for being right
When you spot what you see to be a ‘rick’, you can benefit massively from backing your own judgement. Perhaps a lower league team has big internal issues and their season points tally is set far too high. Selling their points will give you a far higher return than anything you could win with a fixed odds bet.
Take your money and run
As soon as any sort of profit becomes available it can be taken and you don’t have to wait until the end of an event to cash in.
Cut your losses
You will all have experienced an occasion when you know your bet is going to be a loser before it has ended. A spread betting account allows you to bail out early of an unwanted position for a potentially reduced loss.
Back an individual to play well or play badly
A spread bet allows you to back a player to play well or badly by trading on an index, where points are awarded or deducted for good and bad actions during a game.
Excitement
If you’ve never tried it then you are just going to have to take my word for it. Spread betting has the biggest ‘thrill factor’ of all forms of betting and will set your pulse racing like no other. A spread bet can bring even the most boring of events alive.
You now know how and why you should spread bet, but it is also crucial to know the right time play the spreads…
When should you spread bet?
Whether you punt on cricket, football, rugby or darts, if you think the industry has got it wrong then a spread bet is the only route. However, in equal measure, there are also times that you should hold fire and wait until you show your cards. Here are some golden rules…
Know your worst case loss before you bet
Some markets are volatile and you must always ask yourself a question; what is the worst I can do? Plan for the worst and if you would not be prepared to lose that much in a betting shop then lower your stake.
Wait on the weather
It sounds obvious, but so many punters dive in on player performances or individual batsman test runs before they’ve seen the weather. It really is suicide to bet on markets like these the day before without knowing the conditions.
Don’t spread bet for the sake of it
Don’t have a spread bet for the sake of having a bet – those bets often turn out to be the most expensive! One very successful punter once told Sporting Index that the key to his success was his own self belief. In his eyes, confidence should determine stake sizes and ultimately any decisions on whether to trade. “One who has lost confidence can lose nothing more”, he once reminded me.
Don’t be afraid to close
It’s very tempting to close a trade that’s going well early for a profit and leave one running that’s going badly in the hope that things will get better. Try and do the opposite and cut your losses when you can. Jump ship before it sinks.
Don’t bet without research
It’s no secret that Sporting Index makes more from reactionary trades during a match or tournament than on the long term markets which have been available beforehand for punters to scrutinize. There are so many statistics available online that you can do as much research as any market-maker and in some cases more.
Make your own prices before trading
Do your research first and then make your own prices afterwards. Only then should you look at what the spread firms are offering and see whether you and they have genuine differences of opinion. It’s often too tempting to do it in reverse and end up clouding your own original view.
Target long term specials
You’ve definitely got more of a chance, with plenty of research of course, if you focus on the more unusual markets. The trader will be less confident in pricing up something that he or his firm have never traded before.
Be aware of changes in the game, e.g. new ball, substitutions, etc…
There is always a danger of being sucked in to buy a batsman or his team runs in a test match when he is knocking it all over the shop. Just be aware when that new ball is due, it might just be a few overs away and can change the whole match.
If you fancy getting involved in spread betting, head over to Sporting Index
2 responses so far
Wilberto // August 28, 2009 at 10:36 am
Still none the wiser.
I’ll stick to ticking homes or aways on the sections list on the weekend football slip.
spread betting account // October 7, 2009 at 8:56 am
If you want to know more about spread betting account, It is helpful to always go to sites that has forums. People who have experience on this would be of great help.
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