You will notice that the predictions are presented in the form of two prices at firms such as Extrabet
This is a range known as the 'spread' and you bet low (also known as a `Sell’) at the first named price and if you wish to bet high (also known as a `Buy') you would do so at the second price.
For example, if someone asked you to guess their age, you might say `somewhere between 35 and 38 years old'. In the same way, when we make a prediction, we allow a range. If you were placing a spread bet on this prediction you would bet low at 35 years or bet high at 38 years.
How you win or lose?
What you win or lose depends on the stake size you choose and how right or wrong you are. Extrabet might predict that the 1st goal in a match between Arsenal and Manchester United will be scored in the 36th minute and consequently set a spread of 35 - 37 minutes.
One client who believes there is bound to be an early goal will place his online football bet LOW at 35 minutes while another who thinks that both defences will be at their best will place his spread bet HIGH at 37 minutes. If the 1st goal is scored in the 25th minute, the client who went LOW at 35 minutes wins 10 times his stake (35 minutes take away 25 minutes = 10) while the client who went HIGH at 37 minutes loses 12 times his stake.
Why are there fractions of goals, such as a prediction of 2.4 to 2.6 goals?
How can there be 2.4 goals in a game? Well this is our expectation of the number of goals in a game based upon historical statistics. Going on past results for similar games, and taking other factors like team news in to consideration, if this game was played on an infinite number of occasions, there would be an average of 2.4 goals scored every game. Also by having decimals rather than whole numbers it allows us to ensure that a spread bet is settled either side of a whole number, as a whole number is the only actual result that can occur - i.e. 1, 2 or 3 goals etc.
Pros and Cons of Spreadbetting
Open & Close your spread bets during a game
When you place a fixed odds bet you are stuck with it until the event is finished. Then you've either won or lost. Remember those times when you've backed a football team Ante Post at decent odds and seen the odds come in. Unfortunately though the team still doesn't win, so despite the fact that you were right to take the big price, you have nothing to show for it. With online spread betting you can close your bet before the event and take a profit (or a loss).
Bet Either Way
With sports spread betting you don't just have to bet for something to win. You can choose the other side of the spread and bet for it to lose. You can therefore ‘Back’ and ‘Lay’.
The more right you are the more you win
The whole nature of spread betting is that neither your winnings nor losses are set. This means that the more right you are the more you will win. It also means that the more wrong you are the more you will lose.
Innovative markets
Online spread betting has led to some excellent new markets that can be really interesting to bet on. You can bet on the number of minutes that will elapse in a game of football before just about anything happens from the 1st goal or corner to a red card or substitution. Your spread bet could also be based on the more unusual things like the number of times a player’s wife or girlfriend will be shown in the crowd. If you can think of it, you can probably place a spread bet on it!
Volatility
The risk warning clearly states that you can lose more than your initial stake and this can be the case. Spread betting offers terrific excitement but there are some extremely volatile markets on offer and stake sizes should be chosen with care. A cricket team might be all out for 110 one week and be 655 for 3 a few days later.
Account Opening Process
As sports spread betting is regulated by the Financial Services Authority (FSA), the account opening process is far more detailed than opening a fixed-odds betting account. We are obliged by the FSA to ensure that spread betting is suitable for you, you are who you say you are (to avoid fraudulent activity) and that you have the financial means to support your betting.
Complexity
There are often more markets on offer than other types of betting and some are quite sophisticated so do require careful thought and assessment before placing your spread bet.
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