Spread betting is a form of gambling Gambling (or betting) is any behaviour involving the risk of money or valuables on the outcome of a game, contest or other event in which the outcome of that activity is partially or totally dependent upon chance.
Though for many it is a form of recreation, gambling, like any behaviour which involves variation in brain chemistry, can become a psychologically addictive and harmful behavior in some people. Reinforcement phenomena may also make gamblers persist in gambling even though they are losing. Because of the negative connotations of the word, casinos and race tracks often use the euphemism “gaming” to describe the recreational gambling activities they offer. Gambling may also refer to engaging in any high-risk behavior.
….. Click the link for more information. on the outcome of any event where the more accurate the gamble, the more is won and conversely the less accurate the more is lost. A bet is made against a ‘spread’ (or index), on whether the outcome will be above or below the spread. The amount won or lost depends on the level of the index at the end of the event. The spread represents the index firms margin.
The concept has a long history in American sports betting and was imported to the United Kingdom The United Kingdom of Great Britain and Northern Ireland is a state in western Europe, usually known simply as the United Kingdom, the UK or less accurately as Great Britain or Britain. The UK was formed by a series of Acts of Union which united the formerly self-governing nations of England, Scotland and Wales together with the province of Northern Ireland, a region on the island of Ireland (the rest of Ireland left the United Kingdom in 1922).
….. Click the link for more information. in the 1980s Centuries: 19th century – 20th century – 21st century
Decades: 1930s 1940s 1950s 1960s 1970s – 1980s – 1990s 2000s 2010s 2020s 2030s
Years: 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
Events and trends
Bulletin board system popularity
Popularization of personal computers
Home video games become enormously popular, most notably Atari until the market crashes in 1983; the rise of Nintendo brings about full recovery
Space Shuttle Challenger explodes
Accident at Chernobyl nuclear reactor, April 1986
….. Click the link for more information. . In North America the bettor usually bets that the difference in the scores of two teams will be less than or greater than a value specified by the bookmaker A bookmaker, or a bookie, is an organisation or a person that takes bets and may pay winnings depending upon results and, depending on the nature of the bet, the odds. Informally known as a bookie. Bookmaking may be legal or illegal, and may be regulated; in the UK it was at times both regulated and illegal, in that licences were required but no debts arising from gambling could be enforced though the courts.
….. Click the link for more information. . For example, if a bettor places a bet on an underdog in an American football
American football, known in the United States as simply football, is a competitive team sport that rewards players’ speed, agility, tactics, and brute strength as they push, block, tackle, chase, and outrun each other, trying to force a ball further into their opponent’s territory for one hour of game time, which translates into three to four hours of real time.
Like most team
….. Click the link for more information. game when the spread is 3.5 points, he is said to take the points; he will win his bet if the underdog’s score plus 3.5 points is greater than the favourite’s score. If he had taken the favourite, he would have been giving the points and would win if the favourite’s score less 3.5 points was greater than the underdog’s score.
Spreads are often specified in fractions of points to avoid ties, or pushes. The winner of a North American spread bet is paid off at even money less the bookmaker’s commission, commonly known as vigorish or vig. If the bet is a push the bettors receive their stake back less the vig.
In the United Kingdom spread betting has come to resemble the futures market. The bets are usually on the outcome of sporting events or indeed on financial instruments, but the firms often offer bets on more arbitrary events – such as the number of corners during a football match or the total shirt numbers of the goal scorers.
Unlike fixed odds betting the amount won or lost can be very large, as there is no single stake to limit the maximum losses. However, it is usually possible to place a “stop loss” with the bookmaker A bookmaker, or a bookie, is an organisation or a person that takes bets and may pay winnings depending upon results and, depending on the nature of the bet, the odds. Informally known as a bookie. Bookmaking may be legal or illegal, and may be regulated; in the UK it was at times both regulated and illegal, in that licences were required but no debts arising from gambling could be enforced though the courts.
….. Click the link for more information. , automatically closing your bet if the value of the spread moves against you by a specified amount. “Stop wins” are the opposite — closing your bet when the spread moves in your favour by a specified amount.
Example: In a football Football (or soccer) is the most widely played and watched team sport in the world. The game is occasionally known by its official name of association football to differentiate it from other codes of football.
Football is a ball game played between two teams of 11 players, each attempting to win by scoring more goals than their opponent. A goal results when the ball passes over the goal line between the goalposts and under the crossbar.
….. Click the link for more information. match between Liverpool and Everton the spread for corners is 12-13, the index firm believes there will be 12 or 13 corners in total during the match. A bettor approaches the firm with the belief that there will be more than 13 corners during the game, the bettor ‘buys’ at £25 a point at 13. If the final total of corners is 16 the bettor has won, receiving 3 x £25. If the final total of corners is 10, the bettor loses 3 x £25. A ‘sell’ transaction is similar except made against the bottom value of the spread. Often there is live pricing, which changes the spread during the course of an event allowing a profit to be increased or a loss minimized.