Spread Bets Explained

  

For example, say Team A is shown at -7, and Team B at +7. If you placed a bet on Team A, the team would have to win the game by eight or more points. Betting on Team B would win you your bet if the team wins the game, OR if it loses by less than six points. If you would like to learn more, be sure to read our article explaining point spread.

Spread betting has become more and more popular recently, so if you have seen it mentioned here and there but are still not clear about what the term entails, today is your lucky day. We will review what spread betting is so you can decide if you would like to add it to your investing portfolio.

  1. How to Read a Point Spread Point spreads are a way to keep betting lines close even for a.
  2. Spread Betting Explained by Jason Shimberg - Doc's Sports offers spread betting explained in a way that is easy for even novice bettors to.

What is spread betting?

Spread betting is a kind ot trading that consists of placing a bet on a financial product, or more exactly on the range, or spread, or possible expected outcomes.
Let’s say you are betting on gold for example. You would be betting on how much you think gold will vary from what the market expects in say 90 days.
You then place a stake for every point the market moves in your favour, you win back that stake. Or, if the market moves against you, for every point, you lose that stake.

How do you place a spread bet?

In order to get started with spread betting, you need to open an account with a spread betting company, and spend a little time getting used to the platform before you get real and start placing your bets. Many companies offer the possibility to create a fake demo account so you can practise and define a game plan. Remember that you can lose part or all of your money with spread betting, so you want to be really cautious at first. Only invest money you can afford to potentially lose. With a fake account, you can see how much you would have win or lost if you had put real money on the bet.

So now that you have practised and are ready to get real, you can either place a long position, meaning you think the value of the asset will appreciate over the timeframe, or a short one if you think the value of that asset will go down. You can bet on market shares, on commodities, even on currency pairs. So if a currency loses value, but you have called that right, you make money. Unlike if you physically held a depreciating currency. The same goes when you bet on a share losing value. Even if the markets go down, you can make money. The more accurate your bet regarding the state of the asset, the more money you will make.

Should you consider spread betting?

If you do your research properly, and invest without letting your emotions blur your judgement, basing your bets only on the data you have at hand, spread betting can be a great way to earn money on the side. It doesn’t require many hours, you can place just one bet or dozens, and there is little else to do aside for then waiting for the outcome. You can place your bets from the comfort of your home, as spread betting gets done online and you just need an internet connection to get going. So you can do it pretty much at any convenient time during the day, instead of having to go to the bank to buy and sell financial products.

Spread betting is tax free, which is another great point in its favour. No tax gain tax or anything else to hand over to the taxman. And as I said above, even if the markets are in recession, you can earn money from spread betting. So it could be a great alternative when the markets are performing poorly.

If you decide to give spread betting a go, start small, do your research, and increase your stakes once you are fully confident in your abilities.

Spread Bets Explained

Point spread betting is the most popular form of sports betting. The vast majority of sports wagers use a point spread thanks to the popularity of football and basketball. Even though this type of betting is so popular, it may take awhile to understand.

Spread Bets Explained

The point spread is sometimes known as an equalizer for sportsbook operators. All teams aren’t created equally, so sportsbooks can create a point spread for a game so that each team playing has an almost even chance of winning the game. In a way, the point spread will even the field for both teams.

The point spread gives a reason for bettors to risk money on both teams. The better team playing in the game is considered favorite. They have to win by the point spread offered by the sportsbook. The favorite in a game is listed as being minus (-) the point spread.

The worse of the teams playing in the game is called the underdog. The bettor wins if this team wins the game outright or loses by an amount smaller than the point spread. The underdog in a game is listed as being plus (+) the point spread.

Let’s use the upcoming Super Bowl between the Kansas City Chiefs and Tampa Bay Buccaneers as an example.

Sports Betting Spreads Explained

Using this example, the Chiefs opened as 3-point favorites over the Buccaneers (currently Chiefs ). The Chiefs need to win by 4 or more points to cover the spread.

Likewise, the Buccaneers opened as 3-point underdogs. That means the Buccaneers would need to win the game outright or not lose the contest by 4 points or more. If the line is Chiefs -3 and they win by exactly 3 points, the betting result is a “push” and bettors for both sides would get their wagers refunded.

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ALSO READ: 5 Fun Super Bowl prop bets to consider

Point spread betting odds

Point spreads are usually set with -110 odds, but pricing often fluctuates at online sportsbooks. This is the sportsbook operators’ house edge. The odds guarantee the sportsbook operator will see a little money over time. When the odds are set at -110, the bettor must wager $110 to win $100 (or $11 to win $10).

The odds on a point spread are most commonly known as the vigorish or “vig” for the sportsbook. You might hear this small profit margin for the sportsbook called the “juice” by some sports bettors.

Point spread FAQs

What does ‘pick em’ or ‘pick’ mean in NFL betting?

A “pick em” (sometimes seen as “pick”) is when the teams have a point spread of zero, meaning neither team is favored. In this instance, you’re essentially picking moneyline and your bet will be determined on the winner alone.

What does -7 and +7 mean in NFL betting?

A spread of minus-seven (-7) means that a is favored to win the game by a touchdown (technically, a touchdown and the extra point). A team favored by -7 must win the game by eight or more points to win the bet. If the team wins by seven, the result is a “push” and the bet is refunded.

A spread of +7 means the team must win the game or lose by fewer than seven points to win the bet. A loss by seven would result in a push.

Betting Point Spread Explained

What does -3 and +3 mean in NFL betting?

A -3 spread means that the favorite must win by more than a field goal to win the wager. A three-point win would result in a push and the sportsbook would refund the wager.

A spread of +3 means the team listed as the underdog must win the game or lose by fewer than three points to cash the bet. A three-point loss would be graded as a push by the sportsbook and the bet would be refunded.

Why are point spreads in the NFL so much lower than in college?

In 2019, the Baltimore Ravens led the NFL in point differential per game at +13.7 points; the Miami Dolphins ranked last in the NFL in point differential per game at -11.7. Even Kansas City– known for their explosive offense– had an average point differential in 2019 of just 9.7 points. The net point differential in the NFL is -14.1, or -0.9 points per game. Basically, the talent differential in the NFL is so minute that even mismatched teams often draw games within a score of each other.

NFL spreads are most commonly between one point and four, with six being a heavy favorite and extremes coming out around 15-20 point favors. (For those wondering, the 1941 Chicago Bears hold the NFL record of point differential at +15.7 points per game. Conversely, Ohio State had a +33.1 average point differential in 2019.)

Point spread and odds movement

Sportsbook operators often aim to have equal money on both sides of a point spread. When the money is exactly split the sportsbook operator will see the exact vigorish as their profit margin. If all things are equal over time this will maximize how much money the sportsbook operator can make.

In an effort to have equal money on both sides of a wager, the sportsbook operator will move the point spread to attract money on the side that customers aren’t betting on. The odds for a point spread might change before the actual point spread. There are certain point spread numbers, like 3 and 7 in football, the sportsbook operators would like to avoid moving away from since the final score margin falls on these two numbers most often.

Spread

Sports Spread Explained

For example, if a lot more money is wagered on the New England Patriots -3, the vig may shift from -112 to -115 and -120 before the line moves to -3.5.

Run and puck lines

Football and basketball games are mostly bet using a point spread. The less popular major sports, baseball and hockey, are mostly bet using a moneyline. In an effort to make baseball and hockey more appealing to point spread bettors, the sportsbook operators offer run and puck lines, respectively.

Point Spread Bets Explained

These alternative lines give point spread bettors a chance to wager on other sports using a more familiar method of betting. Since points (runs and goals) aren’t as easy to come by in baseball and hockey, the odds with the lines may have a wider spread than a football or basketball game.