Spread betting is a popular strategy in 2019, but what is it, how does it work and how can you maximise your profit?
In this article, we’ll look at what spread betting is along with several spread betting tips and strategies you can use to ensure you get the most out of this method.
To kick things off, let’s start right from the beginning and find out what spread betting is.
What is spread betting?
You may have heard the term spread betting before, but you’re not sure what it means.
Spread betting is a strategy in which punters place bets on markets to move in a given direction.
The amount of money you make or lose is determined by how much a market moves and in which direction.
Predict the correct direction and you make money whereas you pick the wrong direction and you’ll lose money.
On the face of it, spread betting may seem quite simple. However, it’s easier said than done to accurately determine market movements.
How spread betting differs from normal betting
You may be wondering how spread betting differs to regular betting. With traditional fixed odds betting, you know exactly how much you’ll win or lose depending on the outcome of an event.
Your return is calculated by your stake and the odds you selected.
However, with spread betting your profit or loss is determined by how much a market moves (specifically how many points it moves in a given direction).
For a lot of spread bettors, the outcome of an event is irrelevant. Punters generally buy and sell markets before an event has even started.
As I’ve mentioned, initially, you must predict which way the market will move. Betting on the price to increase is called going long and betting on the price to decrease is called going short.
This method involves more risk than other betting strategies but it can be very profitable if you know what you’re doing. Bear in mind that you may lose more than your initial stake with spread betting.
Tom Ryan, Director of Barclays Stockbrokers said 17% of active investors are now using spread betting platforms. This just goes to show how popular spread betting has become over the last few years or so.
So what sports are individuals spread betting on?
Football spread betting
You can use spread betting on several different sports. However, football spread betting is arguably the most popular out there for the following reasons:
- Huge range of football games each week
- Plenty of spread betting markets
- A large volume of betting activity on football
You’ll often find football spread betting markets available on the total number of goals or corners in a game.
All in all, if you’re looking to get started with spread betting, football is certainly the easiest and most popular sport out there. However, it’s not your only option as we’ll look at next. You should also consider tennis spread betting.
Tennis spread betting
Not only can you take advantage of football spread betting but you can also use tennis spread betting in 2019. Tennis is another popular choice for similar reasons.
Due to how tennis scoring works, it lends itself quite nicely to spread betting. There are plenty of markets you can consider betting on including:
- Total games played
- Total points played
- Number of sets won
And many many more…
Just like football spread betting, there are plenty of opportunities to place your bets and make a profit. Next up, let’s look at some spread betting tips.
Spread betting tips
So now we know more about what spread betting is and the most effective sports, let’s look at some spread betting strategies you can use.
As with most things, it’s best to stick to a certain strategy with your betting. You’ll be able to analyse its effectiveness more easily and make any changes as you see fit.
Start with small stakes
Our first spread betting tip is to start with small stakes. As I mentioned earlier, spread betting can be very profitable but the risks are also quite high.
When you first get started it’s important to try things out and learn the process. However, it’s best to minimise any losses in the early stages whilst you get to grips with the spread betting strategy.
Initially, I recommend you don’t wager any more than £1 per point. Once you get to grips with the technique and you start picking more winners, you can start upping the ante.
Use stop losses
Our second spread betting tip ties into the first one. You should always use stop losses in your strategy. With the risky nature of spread betting, not all your gambles are going to go the right way.
This is especially the case when you’re new to the whole process. However, if you’re sensible with your spread betting strategy, you’ll add stop losses which act as a buffer to protect your bottom line.
You can get out of bad trades without eating up your entire bankroll.
Look for trends
You might be wondering how exactly you pick markets that are worth spread betting on. It all revolves around spotting and analysing trends and predicting future market movements.
As you can imagine, it takes a certain amount of skill and experience to accurately predict what a market is going to do. But that’s where the real money lies. Predict right and you can make a decent amount of profit.
By looking at graphs, it’s often clear to spot trends. Intelligent spread bettors would buy into their positions at the bottom of the market and ride the wave up to the top.
How to spread bet successfully in 2019
Spread betting is not easy yet it can be incredibly profitable when you know what you’re doing and you put some time and effort into researching certain strategies etc.
It’s vital to take your time when you first get started and don’t go chasing any huge wins. You’ll only regret it if you lose your entire bankroll in a couple of bets.
Always be on the lookout for certain trends you could potentially bet on. The more opportunities you consider, the quicker you’ll learn about spread betting and how it works.
All in all, use a mixture of the tips mentioned above and you’ll be in safe hands when it comes spread betting in 2019.
What’s your favourite spread betting strategy? Let me know by leaving a comment below right now.