Spread betting is a popular wagering method on offshore sportsbooks, even if it is relatively new and unknown to some audiences. This article explains how spread betting works and provides famous examples of when the spread selections have changed drastically due to emerging news or results.
How Does Spread Betting Work?
Spread betting differs slightly from conventional bets, where wagers are paid out if a specific metric is true or false. For example, if you bet on the Los Angeles Lakers to win a basketball game, and they do, you win and get the returns. If the Lakers lose, you don’t win the bet and lose your stake. It’s a fixed risk and reward.
Spread betting turns that around with a dynamic approach to betting’s risk and reward elements. Instead of relying on binary outcomes, the entire result is adjudged when assessing the success or failure of a wager. It can also apply to almost any bet, with offshore sportsbooks and betting odds applying to anything from sports games to politics and elections.
Markets, therefore, tend to be numerically measured so that success can be efficiently and transparently assessed. In football, a good example would be wagering on a Manchester City fixture. Given how good they are compared to every other team in the Premier League, you may think they’ll easily win the next match.
When you go to a spread betting site, you’ll see an array of markets with various numbers. Manchester City wins by (or winning margin) may have the figures next to it: 2-2.5, meaning that the bookies believe that Man City will win the next match by 2 or 2.5 goals. If you disagree, you can make a wager on it, and you’ll be rewarded with how accurate you are with your prediction.
Buying or Selling in Spread Betting
Look at the ‘spread’ again. Using the prior example, you will’ Buy’ the selection if you think Manchester City will win their next game by 2.5 goals or more. If Manchester City wins 3-0, your bet will come in, and you’ll receive your winnings. However, the exciting aspect of spread betting is that your earnings will increase if they win 7-0. Bettors are rewarded for these attributes, unlike binary wagers. Be sure to check the increment multiples to follow your potential winnings.
Apply the same logic if you bet against Manchester City winning by 2.5 goals. Instead, you would ‘Sell’ on the selection. Should the Citizens scrape a 1-0 victory, you’ll get a decent return as you sold the market successfully.
Now, while the excitement of winning much more than your original stake is very appealing, you can also lose more than you put on the wager! If, say, you bet that a team will win by three goals but they only win by 1, you’ll be wrong in your selection and owe the bookmaker money in multiples.
This is an overview of how most spread betting works, but be sure to check out the particulars of any site you want to play with, as they may have some differences that change how the betting works.
Notable Times a Spread Has Changed
Like conventional odds, spreads fluctuate with sporting developments and news as they emerge. One contemporary example of significant change was Aaron Rodgers, who suffered a season-ending injury in his first-ever game for the New York Jets.
As such, outright markets for the New York Jets’ total wins plummeted. This was because the team had lost its marquee player, who was supposed to elevate the franchise to new heights. Without him, the team slumped to a 7-10 season, failing to qualify for the postseason.
Another time when the spread and odds drastically changed came in the build-up to the UEFA 2022 Women’s European Championship final. England was playing Germany for the spoils. Both teams had been prolific throughout the tournament and were credible champions.
Yet in the build-up to kick-off, it was revealed that Alexandra Popp, the tournament top scorer and German captain, was injured and could not play in the match. As such, the odds were tipped in favour of England, meaning the odds were not profitable for those who correctly backed the Lionesses to lift the trophy.
In-play markets are also very volatile, considering the boxing match between Anthony Joshua and Daniel Dubois. As the former world champion, Joshua was considered the pre-match favourite. However, at the first bell, it became apparent to all watching that Dubois was the fighter in the ascendency. By the time Dubois had landed two knockdowns, the betting sites were scrambling to change the odds. Dubois would go on to win in the fifth round via KO.