Spread betting is a unique form of gambling in which a punter bets on whether an event will finish above or below a spread set by a bookmaker. Unlike fixed-odds betting, your profit or loss depends on how correct you were, making this a discipline not for novice bettors.
Spread betting on the financial markets is one option, but sports spread betting is also available in the UK, with a handful of betting sites offering the service. The Standard has now put together a guide to sports spread betting for those wanting to know how to bet on sports using this method.
What is spread betting?
Spread betting wasn't originally a sports betting term; it originated in financial trading, where spread betting on shares, indices and forex is regulated separately. This article focuses specifically on sports betting. With fixed-odds betting, the potential return is set when the bet is placed. The return on a spread bet changes according to the final result.
In sports spread betting, a bookmaker sets a spread around its predicted outcome. Bettors then have two options: they can buy the spread, meaning they are backing the event to finish above the outcome set by the bookie, or sell, meaning they are backing it to finish below the spread. The amount won or lost is linked to the difference between the spread and the final result. The further the outcome moves in your favour, the more you can win, but the same principle applies to losses.
How does spread betting work in sport?
Suppose a bookmaker sets a total goals spread for a football match at 2.5-2.8. A bettor buying the spread is backing the final number of goals to exceed the quoted level, while selling the spread means backing it to finish below the level. If you buy at 2.8 and the match produces 4 goals, the difference is 1.2. Your profit would therefore be your agreed stake per goal multiplied by 1.2. If the match produces only 1 goal, the loss would be based on the difference between 2.8 and 1.
This means both potential profit and potential loss depend on how far the final result moves from the spread. The market can cover total goals or points, a team's winning margin, known as supremacy, disciplinary points, corners, bookings and other match statistics.
Types of sports spread betting
Football betting offers several spread markets, including total goals, a team's winning supremacy, corners and bookings or disciplinary points. The range allows bettors to take a position on specific aspects of a match rather than simply backing the winner. Cricket spread betting can cover total runs, a team's total run supremacy and total wickets. These markets reflect the sport's focus on scoring and dismissals.
Golf can feature player performance spreads based on total strokes against the field, while rugby commonly uses winning margin or supremacy spreads similar to football.
Spread betting vs fixed-odds and handicap betting
The main difference between spread betting and fixed-odds betting is how the result is settled. A fixed-odds bet has a known potential return and the maximum loss is normally the initial stake. A spread bet moves with the final result, so neither the profit nor loss is fixed in advance. Handicap and Asian handicap betting work differently. A handicap bet is generally settled as a win or loss at a fixed stake, while an Asian handicap can also produce a partial win, partial loss or void result. The Asian handicap betting guide covers this market in more detail.
Spread betting strategies for beginners
Beginners should understand the underlying market before deciding whether to buy or sell a spread. Looking at recent form and trends can help build a view of how a team or player may perform, while comparing the bookmaker's spread with your own prediction can identify where you believe the market has been priced too high or too low.
One of the best betting strategies for spread betting is to start with a small stake per point or goal while learning how quickly prices can move. A clear staking plan is particularly important because losses can increase as the result moves against you. A stop-loss can also provide a predetermined point at which to close a position and limit further losses. Spread bets are usually excluded from free bet offers and welcome bonuses, the exception being the sign-up offer from Spreadex, which features £30 in free spread bets.
Spread betting risks and considerations
Spread betting carries the potential to lose more than the initial stake. Unlike a standard fixed-odds bet, where the stake normally represents the maximum loss, a spread bet's loss increases according to how far the result moves against the position. This is the most important risk to understand before placing a bet. Set a maximum loss or stop-loss in advance, use a small amount per point while learning and treat the market as higher-risk than conventional fixed-odds betting.
Financial spread betting on shares, indices and forex is FCA-regulated. Sports spread betting is different and is offered by bookmakers licensed by the UKGC. The two forms of spread betting should therefore not be treated as being covered by the same regulatory regime.
Responsible gambling
Spread betting can carry greater risks than fixed-odds wagering with losses having the potential to rise significantly beyond the original stake. As such, spread betting requires particularly careful staking and bankroll management. UKGC-licensed operators provide tools including deposit limits, loss limits, time-outs and self-exclusion. Gambling is meant to be a form of entertainment and should never be treated as a way to make money. Never chase any losses and if the fun stops, stop. Self-awareness is important. Take note of how you feel when gambling and if you ever have any concerns, reach out to someone to discuss how you are feeling. Help is available 24/7, 365 days a year via various organisations: GambleAware, GamStop, Gamblers Anonymous and NHS gambling services.
Spread betting - frequently asked questions
Can you lose more than your stake with spread betting? Yes. Unlike fixed-odds betting, a spread bet's loss increases according to how far the final result moves from the spread in the wrong direction. This means losses are not capped at the initial stake, making the market riskier than a standard fixed-odds bet.
Is spread betting on sport regulated the same way as financial spread betting? No. Financial spread betting on shares, indices and forex is regulated by the FCA, while sports spread betting is offered by bookmakers under UKGC gambling licences. Sports spread betting therefore falls under the same gambling regulatory regime as fixed-odds sports betting.
We aim to offer every online gambler and reader of The Standard a safe and fair platform through unbiased reviews and offers from the UK's best online gambling companies. Gambling can be addictive, always play responsibly and only bet what you can afford to lose. Gambling sites have a number of tools to assist you to stay in control, including deposit limits and time outs. If you think you have a problem, advice and support is available for you now from BeGambleAware or Gamcare. Any offers or odds listed in this article are correct at the time of publication but are subject to change. Terms & Conditions apply to all offers.
