Betting is a huge past time, especially for sports lovers everywhere. It used to be “How much do you want to bet that the Packers beat Dallas?” But over the years, it’s gotten much more complicated and sophisticated. It’s not just about winning or losing anymore; it’s about by how much. In fact, your team can lose, but if you “beat the spread,” you can still win. Indeed, spread betting has become extremely popular and involves millions of dollars.
However, spread betting is also used in high finance, and yes it could cost or earn someone millions of dollars. It’s a kind of speculation that revolves around posting a bet (or bid) on the price fluctuation of a security or stock. Please note, however, that spread betting in the financial world is not legal in the U.S., although it is in Britain and most other countries that trade stock and securities. Ironically, spread betting in the finance world was invented by an American in the 1940s. It came to prominence in Great Britain in 1974 with the advent of spread betting on gold.
However, pundits believe that you can get around it as a U.S. citizen if you register a company offshore and use it to trade in markets, such as Britain, where it is legal.
Let The Games Begin!
Americans spend an enormous amount of time watching sports and an even enormous amount of money betting on sports. It’s not just about win or lose in games where there are points scored, it’s about what the spread will be between the winner and the loser. Spread betting on a basketball or football game in particular enables you to bet on your team, and even if it loses, you could still win!
Please note that although it seems spread betting is widely practiced in the U.S., it’s only actually legal in four states: Nevada, Montana, Oregon and Delaware. It can definitely be fun and even profitable, especially if it’s something you do in the office for a buck or two. But when you are talking about bookies and Las Vegas, it tends to be much more of a high stakes game. There’s a simple rule to follow: do not bet money that you cannot afford to lose.
Here are some of the basics to follow when it comes to sports spread betting:
Start with straight betting or picking which team will win and which will lose. It will help you get the hang of sports betting in general and if you aren’t limited to your favorite team, you can get to know the other teams and perhaps be more successful at betting on them.
Basically, a point spread is a handicap that is placed on one team (only for betting reasons – a team is not actually handicapped). It is set up to provide both competitors with an equal chance of winning in the minds of bettors
Actually, the truth is that when two opposing basketball or football teams come together, most people already feel that one is better than the other at that time. Bookies, or those that take the bets, make it interesting by giving people the opportunity to bet on either team equally with a point spread. Team A is favored to win by 10 over Team B. So what that means to betters is that if they bet on Team A, that team has to win by 10 points in order for it to be counted as a win. Team A has to beat the spread. If Team A wins by only 10 points, it’s considered a “push” and no one wins or loses.
One way to look at it is to say a point spread is way to even the odds between two teams that are unevenly matched.
If you are able to put your emotions aside and spend some time reading up or watching the sports shows to get information on the teams, you have a better chance of actually winning. But it’s a gamble. Any given Sunday, any given team can knock off any other team. And the same goes for basketball. For example, in the 2014 NBA play offs, odds makers and sports fans alike heavily favored the Indiana Pacers over the Atlanta Hawks. However, in the first three games, the Hawks prevailed and won two games. Imagine how many disappointed bettors there were if they had picked the Pacers by any score?
There are no get-rich-quick schemes that actually work. Betting on sports is the same way. However, there are things that you can do to equip yourself with some advantages. This course will teach you how to create your own betting strategy. Make it fun. Don’t count on it, but increase your odds of winning at spread betting.
It might also help if you familiarize yourself with a particular sport. You can learn the game of American football and its terminology via three people – one of which is a woman – who will give you an overview that will enable you to make smarter choices if you choose to practice betting on American football.
Spread Betting In Finance
In the world of finance, speculators use spread betting to make money, but as it is with betting on the outcome of a sports game or even, there is chance you will lose. The stakes can be high and cost or earn someone millions of dollars in one fell swoop.
Here’s how it works:
- A company that specializes in spread betting quotes two prices on a security. One is the bid price and one is the offer price or spread. Investors then “bet” on whether or not the price of this stock will be beyond the offer or under the bid.
- The investor will not or does not own the stock. He/she is just betting on its price movement.
- In a way, it’s the same as a sports bet… the participant is gambling on the outcome of the stock price.
- Let’s break it down with an example: A spread betting firm releases a bid of $1,000 and the offer is $1,010. As an investor (or gambler actually), if you think the stock is going to be lower than $1,000, you bet an amount – say $5 – for every dollar that the stock falls below $1,000. So at the end of the designated time period, if the stock fell to say $900, you would make $500. However, if the stock ended up higher – say $1,050, you would lose $200.
Remember, you don’t have to own any shares to be able to speculate. Simply put, you can bet on the price of oil without owning any of it.
It may sound easy, but it takes a lot of knowledge of the market as well as the particular stocks and their companies to be good at it. You can learn how to think smarter and strategize to win and make your own business stronger.
There’s no doubt that people that work the stock market as a living are highly competitive. They’re smart and savvy and they play to win. They aren’t afraid to take your money for their own gain. It’s totally in your best interest to understand the unwritten rules so that you can compete. Get pertinent behind the scenes information about the stock market so that you can make wise choices and have a better chance of getting your money to work for you. Yes, it’s a gamble. It’s definitely high risk, but people do it every day and make thousands and even millions.
It’s All About The Numbers
The bottom line, whether you are betting on sports or a financial market, is that you have to do the research and understand the numbers. There’s no clear-cut way to win. You have to strategize and make your best move based on common sense and knowledge of the game and its participants. One way, thought, to possibly increase your odds of doing well in spread betting is to learn how to read data, such as statistics, reports and expert analysis.
It’s your money. Invest it wisely.