With spread betting, by predicting if the
bookie have it right or wrong, the more right you are the more
you win. With no deductions (the bookies cover all the taxes!)
all the winnings are yours. You don't even have to be exactly
right, either as long as you are in the right direction, you
will make a profit.
Sounds complicated?
It's actually quite easy…...as always
an example is the best way to explain. Lets take a match between
Leeds v Newcastle. Sporting Index may make Newcastle favourites
to beat Leeds by 0.2 - 0.5 goals, and would be presented like
this:
Market
So
Far
Quote
Stake
Action
Newcastle/Leeds
(h)
0.2
-
0.5
SELL
BUY
Therefore Sporting Index is predicting a
small Newcastle win by 0.2 - 0.5 goals. If you think Newcastle
will win you would go high (BUY) at 0.5 for £10 per
goal. Predict a draw or Leeds win? You want to go lower (SELL)
at 0.2 for £10 per goal.
How do I calculate my winnings?
If Newcastle won the game 4-1, their wining
margin (make-up) would be 3 goals. Had you bought at 0.5 at
£10 per goal you would have won 2.5 times your stake.
However, if Leeds had won 2-0, the same bet would have lost
you 2.2 times your stake.
Stake * (-2 - 0.2) = £10 * -2.2 = £22 loss.
It sounds risky?
Naturally with spread betting there is a
greater risk than at the normal bookies. You can close your
account at any time until the end of play on live 'In-Running'
markets, which allows you to take a profit, or cut a loss.
You can also open a limited risk account (know at Sporting
Index as a Shield account). This offers you all the thrills
of an ordinary spread bet with the added security of limited
exposure. In effect a Shield Account offers you the chance
of Spread Bet with a safety net. See out types
of accounts page for more details.
We'd advise to be careful and make sure you understand how
the spread is calculated before placing any bets.