Spread Betting was invented by US mathematician Charles McNeil, who prospered as a bookmaker and a securities analyst following the Second World War. This form of betting has gained in popularity in recent times and although it is not allowed in the United States, punters from UK, Australia, and most of Europe have made a lot of dough from this kind of betting.
This kind of betting involves wagering on the outcome of a certain event where the reward is based on the accuracy of the bet rather than a simple win-or-lose bet. Spread betting involves betting on a speculation and the final reward will be based on whether the actual outcome has been more or less than the spread which has been wagered by a punter.
There are two kinds of prices in the market for spread betting – the purchase price and the selling price. The difference between these two values is referred to as the spread. Bookmakers who allow their punters to indulge in spread betting usually do not charge commission for it.
Cricket is a great market for spread betting on online sports books. The popularity of the Twenty20 league competitions which have come up on a large scale among cricket playing nations has helped with this kind of betting. The kind of spread bet which is mostly preferred by punters is called a Total.
Basically, a Total bet is a stand-alone wager made by a punter on whether or not the total number of runs scored by both teams, wickets taken by both teams, run outs made by both teams, catches taken by both teams, fours or sixes hit by both sides, etc. in a particular game or over the course of a series will be over or under a particular value.
In a game of cricket, the stats that a punter will be interested in if s/he were to wager on a spread would include number of catches taken by each team, wickets, even the number of wides or no-balls. If, in an Ashes match involving England and Australia, the bookmaker believes that a total of 8-9 dismissals will be effected through catches, the spread will be set at 8-9.
Example of Spread Betting:
Suppose A wagers £50 on the possibility of there being more than 9 catches. If the match see’s 14 catches being taken, A will win [(14-9) = 5×50] = £250 on his wager. However, if less than 8 catches are taken, let’s say 5 catches are taken, then A will lose [(9-5) = 4×50] £200 on his wager.
In order to make profits from this kind of betting, punters must be winning at least 52.38% of their bets. Spread betting can be more rewarding than even investing in the stock market. For starters, punters do not have to pay any kind of commission on a spread. Secondly, one can make a lot of profit by investing very little money if their bets work out.
Although the amount of risk involved with this kind of betting is considerably more, punters also stand a chance to make a huge amount of profit if they do get it right on their spreads.