Spread Betting Explained...

Unlike traditional betting where you bet on the outcome of an event such as Chelsea to win the premiership, when you spread bet you are gambling on the margins of victory or loss. So instead of betting Chelsea to win the league outright, you actually bet on the total number of points by which you think Chelsea they will win the league.

The 'spread' is set by the bookmaker usually on a points system such as the following: winner = 60 points, runner-up = 40 points, 3rd = 30 points, 4th = 20 points, 5th = 10 points, 6th = 5 points. All others = 0. So the Chelsea 'spread' is set by the bookmaker at 58 - 59 points. Remember these are not league points but an arbitrary way of gauging the likelihood of the individual chances of a team's success in the same way traditional odds represent a teams chances of winning.

As you can imagine Chelsea are clear favorites to win the league this year so if you wanted to back Chelsea to win the league you need to bet above the 58 - 59 spread. If you think Chelsea may fall apart in the latter stages of the season then you bet under the 58-59 spread. So how do you win money and how much?

This is when spread betting can get a little complicated. Let's say Chelsea goes on to win the league, they will get awarded the maximum 60 points by the bookmakers spread system and you have bet above the spread at £10 you would win £10! This is because you effectively bet £10 per point over 59 points so your maximum win could only be by 1pt.

Now let's say that you had bet Chelsea 'Under' the spread of 58-59 points. Try very hard to imagine Chelsea losing 10 games on the trot and finishing 4th in the League. They would be awarded 20 points on the bookmakers spread system for finishing in this position. The difference between the original bookmakers spread at 58-59 and the 20 points they ended up with is 38. Take that 38 and multiply it by your original stake for your winnings. In this case your £10 would net you £380.

Of course this type of betting can also work against you. Using the example above, had you bet 'Over' the 58-59, believing that Chelsea would romp home in top position then you would be liable to a substantial loss. How? Well take the 58-59 points at which they were originally placed, take away the 20 points that they ended up on and you are left with 38. Unlike the outcome above, you now owe £380. This is opposed to just losing your £10 stake like you would in regular fixed odds betting.

Spread betting can be highly profitable, but it comes with a large element of risk. You could lose more than your original stake! There are ways to limit your risk as spread betting companies allow you a 'Stop Loss' option when placing a bet. This means you can set a limit on how much you could lose; this also effects how much you could win too. When new to spread betting try to avoid betting on sports with large spread liabilities such as the cricket games. Also keep your stakes low. A £5 bet in the traditional bookmakers would not be considered a big bet but in spread betting a £5 bet could open you up to serious loses depending on the markets.

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Suitability checks, terms and conditions apply. See site for details about an account with bethilo. Sports spread betting is high risk and is not suitable for everyone. You can lose more than your original stake, so make sure you understand the risks involved and only bet with money you can afford to lose. bethilo is a trading name of Sporting Index, which is authorised and regulated by the Financial Services Authority.