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Deposit margin is the initial deposit you put down to actually open a position while maintenance margin is the amount you'll put in if your position starts accumulating losses that can't be covered by the deposit you put down. The good thing is you'll get something called a margin call, which is just a notification saying that you need to add more money and the reason why. Moneyline Betting Explained Main Features of Point Spread Betting There are three main features of spread betting, which are the point spread, the favorite, and the underdog.

Keep reading to see a more in-depth explanation of these below. The bigger the spread is, the bigger the underdog will be. Every sport and match or game is different, so make sure you know how to read multiple point spread bet types. They use many things to figure this out, including how many people have bet on the team, how they've been doing during the season, how many players have been injured, and which team has home-field advantage.

The Underdog The underdog is the team that isn't as popular and has a lower chance of winning. They are the team that has the plus sign in front and they usually lose more games than the favorite. With that said, though, there's nothing that says they can't come out on top. The simple reason for this is because the sportsbook has the right to shift the odds and spread whenever they want.

You have to remember they'll want to try and come out even, so they'll shift the odds and spread more towards their favor. This is something you want to watch because you never know when it'll change. If possible, try and check the lines multiple times a day to ensure you're staying up-to-date on exactly what's going on. There are a few instances when it's a good idea to bet on a point spread. The first is when both teams are relatively equal because there's a higher chance that you can win your bet.

Another instance is if you're trying to get a larger return. These bets can give a great payout, but they can also cause you to lose a nice chunk of change. The final instance is when you know what you're doing and completely understand spread betting because placing a bet when you aren't sure what you're doing can lead to losing quite a bit of money.

Benefits of Point Spread Bets Some of the benefits of these types of bets are listed next. Don't have to choose a team to win Chance for a high return Point Spread Betting Strategies How to bet on Super Bowl Predict and Exploit Sometimes, an extra half-point or full point could mean the difference between winning and losing your bet.

The easiest way to do this is to watch the lines leading up to the game and decide if you want to bet now, later, or not at all. Remember, though, once you place your line bet, you're locked in and can't change it. All you do is take the games you think you'll be interested in betting on and put down what you think the spread will be. Once you have everything down, you'll be able to look at the actual lines and see how far off you were. Simply put, if you see that the lines are equal or more in your favor, place your bet!

The Public and the Sharps If you're planning on betting on the underdog, you should wait until a few days before the game. As it gets closer, more people in the general public are going to be placing bets and the amounts will go up.

Try to wait as long as possible before placing your bet. If you see a lot of movement earlier in the week, that's probably because of bettors that have a lot of money on the line. This is a good way to see where you should put your money.

How to understand betting odds? Double Down Let's say you place a bet on Team A to win. If you see that everything is moving more in your favor, don't be afraid to double down and place another bet. This could lead to winning double the money! How Point Spread Are Used in Different Sports Even though point spreads are used across multiple sports, they're all read pretty much the same way.

The only difference is how they score. For example, football would be goals, basketball would be points, and hockey would be goals. It'll all depend on the game and if you aren't sure, you can reach out to the pros handling your money. How To Read a Point Spread It's actually really easy to read spread bets once you know what you're doing. Let's say Team A is The minus means that Team A is the projected favorite and the plus means that Team B is the underdog.

With Team A, they'll have to win by 7 or more points for you to win your bet and Team B will need to win or lose by less than 7 for you to win your bet. If Team A doesn't win by 7 and Team B either doesn't win or loses by more than 7, then you won't make anything. Managing Risk in Spread Betting The great thing is that there are multiple tools that you can employ to manage your risk. For starters, you'll want to make sure you know the market you're betting on because it's never a good idea to go in blind.

You'll also want to make sure you have earnings reports to ensure you know where your wins and losses are. Finally, make sure you're using stop losses to ensure you're in a favorable position if the market turns on you and you'll be able to lock in winnings without accidentally losing them all back. If casinos set lines to encourage an equal amount of money on both sides, it sets them based on the public perception of the team, not necessarily the real strength of the teams.

Many things can affect public perception, which moves the line away from what the real line should be. This gap between the Vegas line, the real line, and differences between other sports books betting lines and spreads is where value can be found. A teaser is a bet that alters the spread in the gambler's favor by a predetermined margin — in American football the teaser margin is often six points. For example, if the line is 3. In return for the additional points, the payout if the gambler wins is less than even money , or the gambler must wager on more than one event and both events must win.

In this way it is very similar to a parlay. At some establishments, the "reverse teaser" also exists, which alters the spread against the gambler, who gets paid at more than evens if the bet wins. Sports spread betting[ edit ] In the United Kingdom , sports spread betting became popular in the late s by offering an alternative form of sports wagering to traditional fixed odds , or fixed-risk, betting. With fixed odds betting , a gambler places a fixed-risk stake on stated fractional or decimal odds on the outcome of a sporting event that would give a known return for that outcome occurring or a known loss if that outcome doesn't occur the initial stake.

The spread on offer will refer to the betting firm's prediction on the range of a final outcome for a particular occurrence in a sports event, e. The more right the gambler is then the more they will win, but the more wrong they are then the more they can lose. The level of the gambler's profit or loss will be determined by the stake size selected for the bet, multiplied by the number of unit points above or below the gambler's bet level.

This reflects the fundamental difference between sports spread betting and fixed odds sports betting in that both the level of winnings and level of losses are not fixed and can end up being many multiples of the original stake size selected. For example, in a cricket match a sports spread betting firm may list the spread of a team's predicted runs at — If the gambler elects to buy at and the team scores runs in total, the gambler will have won 50 unit points multiplied by their initial stake.

But if the team only scores runs then the gambler will have lost 50 unit points multiplied by their initial stake. It is important to note the difference between spreads in sports wagering in the U. In the U. In the UK betting above or below the spread does not have a known final profit or loss, with these figures determined by the number of unit points the level of the final outcome ends up being either above or below the spread, multiplied by the stake chosen by the gambler.

For UK spread betting firms, any final outcome that finishes in the middle of the spread will result in profits from both sides of the book as both buyers and sellers will have ended up making unit point losses. So in the example above, if the cricket team ended up scoring runs both buyers at and sellers at would have ended up with losses of five unit points multiplied by their stake.

This is a bet on the total number of points scored by both teams. Suppose team A is playing team B and the total is set at If the final score is team A 24, team B 17, the total is 41 and bettors who took the under will win. If the final score is team A 30, team B 31, the total is 61 and bettors who took the over will win. The total is popular because it allows gamblers to bet on their overall perception of the game e.

Example: In a football match the bookmaker believes that 12 or 13 corners will occur, thus the spread is set at 12— A "sell" transaction is similar except that it is made against the bottom value of the spread. Often "live pricing" changes the spread during the course of an event, increasing a profit or minimizing a loss.

In North American sports betting many of these wagers would be classified as over-under or, more commonly today, total bets rather than spread bets. However, these are for one side or another of a total only, and do not increase the amount won or lost as the actual moves away from the bookmaker's prediction.

Many Nevada sports books allow these bets in parlays , just like team point spread bets. This makes it possible to bet, for instance, team A and the over, and be paid if both team A "covers" the point spread wins by that amount or more and the total score is higher than the book's prediction. Such parlays usually pay off at odds of with no commission charge, just as a standard two-team parlay would.

Mathematics[ edit ] The mathematical analysis of spreads and spread betting is a large and growing subject. For example, sports that have simple 1-point scoring systems e. Financial spread betting[ edit ] By far the largest part of the official market in the UK concerns financial instruments; the leading spread-betting companies make most of their revenues from financial markets, their sports operations being much less significant.

Financial spread betting in the United Kingdom closely resembles the futures and options markets, the major differences being the "charge" occurs through a wider bid—ask spread ; spread betting has a different tax regime compared with securities and futures exchanges see below ; spread betting is more flexible since it is not limited to exchange hours or definitions, can create new instruments relatively easily e.

Financial spread betting is a way to speculate on financial markets in the same way as trading a number of derivatives. In particular, the financial derivative contract for difference CFD mirrors the spread bet in many ways. In fact, a number of financial derivative trading companies offer both financial spread bets and CFDs in parallel using the same trading platform. Unlike fixed-odds betting, the amount won or lost can be unlimited as there is no single stake to limit any loss. However, it is usually possible to negotiate limits with the bookmaker: A stop loss or stop automatically closes the bet if the spread moves against the gambler by a specified amount.

A stop win, limit or take profit closes the bet when the spread moves in a gambler's favor by a specified amount. Spread betting has moved outside the ambit of sport and financial markets that is, those dealing solely with share, bonds and derivatives , to cover a wide range of markets, such as house prices. Additionally, by avoiding the favourite-longshot bias , where the expected returns on bets placed at shorter odds exceed that of bets placed at the longer odds, and not betting with one's favorite team, but rather with the team that has been shown to be better when playing in a specific weather condition and time of day, the possibility of arriving at a positive outcome is increased.

Tax treatment[ edit ] In the UK and some other European countries the profit from spread betting is free from tax. The tax authorities of these countries designate financial spread betting as gambling and not investing, meaning it is free from capital gains tax and stamp duty , despite the fact that it is regulated as a financial product by the Financial Conduct Authority in the UK. Most traders are also not liable for income tax unless they rely solely on their profits from financial spread betting to support themselves.

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