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Spread Set

Details of Different Spread Betting Strategies Illustrated and Simplified

Spread betting is a high-risk system of betting which has the potential to make you earn or lose a significant amount of fortune.  This type of betting strategy is quickly gaining popularity due to its ability to convert a small wager to large profits.  However, before going into any venture it is best to be acquainted with some of the basics of this system.

Just like any other betting strategy, spread betting relies on the outcome of an event in which to base its payoff.  But unlike fixed-odds or pari-mutuel betting which just relies on a "win-lose" outcome, the payoff for spread betting relies on the accuracy of the prediction to the actual result.  This type of betting system has been largely in use in the financial and sports markets, but can be utilized on many other betting markets as well.  A "spread" is a range of numerical outcomes which is quoted by a betting firm or bookmaker for a particular event, while the "bet" is whether or not the actual result will be above or below the quoted spread.  There are various spread betting techniques and the examples below are given in order to further illustrate how they operate.

I. FINANCIAL MARKET: Let us suppose that the bookmaker quotes a spread of 100 to 101.5 as the price for a given stock market product.

1)      You believe that the price of the product will rise more than 101.5, and "buys" £20 at 101.5

a)      The actual price rises to 104, therefore you win. 104 – 101.5 = 2.5 x £20 = £50 PROFIT

b)      The actual price drops to 93, therefore you lose. 101.5 – 93 = 8.5 x £20 = £170 LOSS

2)      You believe that the price of the product will drop more than 100, and "sells" £20 at 100

a)      The actual price rises to 104, therefore you lose. 104 – 100 = 4 x £20 = £80 LOSS

b)      The actual price drops to 93, therefore you win. 100 – 93 = 7 x £20 = £140 PROFIT

The "buy" point is the higher value of the quoted spread, while the "sell" point is the bottom value.

II. SPORTS: (Underdog vs. Favorite) Let us suppose that a bookmaker quotes a spread of 6 points in a basketball game.

1)      If you bet on the Underdog, then you "take" the points.  This means that you win the bet if the score of the Underdog plus the spread is more than the score of the Favorite.

a)      Final score: Underdog 12 (+6 = 18), Favorite 20.  You lose the bet.

b)      Final score: Underdog 12 (+6 = 18), Favorite 16.  You win the bet.

2)      If you bet on the Favorite, then you "give" the points.  This means that you win the wager if the score of the Favorite minus the spread is more than the score of the Underdog.

a)      Final score: Underdog 12, Favorite 20 (-6 = 14).  You win the bet.

b)      Final score: Underdog 12, Favorite 16 (-6 = 10).  You lose the bet.

III. SPORTS: (Over – Under) This is a type of spread betting strategy wherein the scores of both teams are added up, and the bet is whether it will be over or under the specified quote.  Supposing that the bookmaker sets the total free kicks in a football game at 40.5 points.

1)      If you think that the free kicks will be more than 40.5, then you bet "Over"

a)      Final score: TeamA-25, TeamB-19 = 44.  You win the bet.

b)      Final score: TeamA-20, TeamB-19 = 39.  You lose the bet.

2)      If you think that the free kicks will be less than 40.5, then you bet "Under"

a)      Final score: TeamA-25, TeamB-19 = 44.  You lose the bet.

b)      Final score: TeamA-20, TeamB-19 = 39.  You win the bet.

In this method of wagering, the gambler doesn't have to pick a side or a team to win, but rather bets on their perception on the overall manner of the game.  For example, if a match is set between teams which are notorious for foul play, then the punter may opt to bet "Over" in free kicks.  The opposite would be true for teams that are known to have level-headed players.

Whatever the method of betting you may encounter, always remember that research, planning, and strategy are the keys to success in this type of trade.

About the Author

Spread Betting is increasingly gaining popularity in the betting world. Visit Free Betting Online to get more information.

If a data set is skewed, is it better to describe its spread with the standard deviation or IQR?

(IQR describes the Interquartile Range) If you do know which one is better can you explain why? Thanks

Good question, but I can't really say for sure.

I will say that the IQR is seldom used outside of books, except in some statistical process control.

I would ask more about the application -- what the data set represents, and so on. For example, sets are typically observations in a sample, and are almost always skewed. But they represent a population. The real question is whether the population might be skewed.

Excel Spread Sheet Basics - Using a Formula

Tags: 05*2010, set, sethgodin, sg, spread

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