Tuesday, July 24, 2012

Spread Betting In A Nutshell

Off track betting site built to replace the Gr...
Off track betting site built to replace the Greenwood Raceway (Photo credit: Wikipedia)
Unlike myriad financial transactions where the emphasis is on risk-free investments and mutual profit funds, spread betting is a calculated gamble. Spreadbetting involves a high level of risked wagering where the outcome relies on a series of ‘spread values’ and not on a simple, ‘Profit v/s Loss’. Though spread betting is quite similar to gambling, it is being regulated by the Financial Services Authority in UK on account of the widespread interest in spread-betting.

The purpose of spread betting is to create a relatively high chance of winning for bidders on both the sides of the wager. Instead of a single point spread betting value, there are a series of spread-betting values chosen that will take the pressure of both the favorite and the underdog and create a more even wagering platform for the bookie and betters.

The odds of winning or losing stand at a capricious 50:50 in spread betting and the bookie might at times, pay both parties a certain proportion of the total wager, to profit steadily. However, contrary to the theory, spread betting favors only one side of the wager and bookies are known to change odds for profit.

So much has spread betting gained repute that a special statistics branch of mathematics has been deputed to analyze the risks and monitor the intricate activity of spread-betting.

Spread betting is an extensively high-risk activity and the profits and losses incurred can be unpredictable. It is thus, recommended to bid intelligently with a clear idea of the minutes involved in spread-betting statistics.

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