Spread betting works on the idea that instead of betting on a binary outcome of an event, i.e. whether a horse wins or not, you are betting on the “closeness” of a variety of outcomes. One of the most popular areas for spread betting is the financial markets. In these circumstances, the goal is to be as close to the actual result as possible.
What is spread betting: Unlike other forms of betting, spread betting is legally enforceable gambling and is regulated by the FSA, an independent body that also oversees financial services such as loans and mortgages.
The biggest difference between spread betting and traditional betting is that you are not betting on a binary outcome with only two outcomes, but on a range known as “The Spread”.
Advantages of spread betting
When it comes to the stock market, one of the great benefits of spread betting is that you don’t need to own the assets to profit from them. For example, you may believe that the value of Google stock will increase, but you are not willing to pay its current value because you do not believe that it offers good value for money. With spread betting, you can still benefit from your cost improvement.
You Can Profit From a Downturn: It’s usually harder to make money in stocks when the market is down; however, when placing spread bets, it is entirely possible to bet on a specific decline in the market; allowing you to profit from a downturn in the market
Winnings may be tax-free, although if you regularly profit from spread betting winnings, the government may treat it as income, but initially the gain is subject to capital gains tax. It is a much riskier investment than even the most adventurous venture capital scheme and is therefore not recommended as a tax avoidance technique.
What is spread? These are the options set by the bookmaker for betting. This includes odds that are expressed as a zero coupon bond.
What’s the bet? Two types of bets are generally เว็บแทงบอล used in spread betting. The first is known as an ascender bet, which is sometimes also known as a buy bet. This is selected from the top of the bet makers roll. The other option is short bets or sell bets, these are selected from the bottom of the spread.
Wins and Losses: These are calculated by calculating the “points” distance between the closing and opening prices, which are then multiplied by the bet per point.
This is just scratching the surface of spread betting. As you are probably aware, it is quite a complex area, but it can be very rewarding for anyone who specializes in it as a career.