Spread betting strategy
The two common factors which you should
bear in mind regardless of what type of spread betting
you engage in are:
1. Know your market
2. Get the best price possible
Know your market
This involves gaining a thorough understanding of the
rules that govern a particular market, including:
· Knowing the opening and closing times of a
market in relation to the start and finish of an event.
· Understanding fully the rules which govern
the make-ups, particularly in relation to ties in performance
indices.
· Whether a spread company uses the term ‘points’
to mean actual points scored, or the lowest possible
increment in which points are quoted (this can often
be tenths of a goal, meaning a misunderstanding could
amplify your bet ten times over.
· Generally, avoid betting on multiple indices
in a combination-spread bet, particularly where the
subject of the bet involves a high degree of chance.
Get the best possible prices
All bookmakers’ odds have a profit margin built
into them, which should ensure that the bookmakers beat
their clients over a long period of time.
This can be highlighted by looking at the odds on two
tennis players in a match. If you add the odds on offer
together, they will always add up to more than 100%.
This excess represents the bookmaker’s edge and
is the amount you would statistically be expected to
lose if betting consistently without talent or knowledge,
over a period of time.
The average bookmaker’s margin is around 15%
on single straight bets. As a general rule, the more
possible outcomes, the higher the margin there is in
favour of the bookmaker. However, margins on most spread
betting markets are lower, with just over 10 percent
being a much more common take.
However, the margin with spread companies is not necessarily
the same on all markets and can vary considerably from
firm to firm, and from buy markets to sell markets.
For this reason you should always shop around and examine
the markets from both a high and low perspective.
In fact, you really should open accounts with a number
of different spread companies, then you can shop around
each time you place a bet for the best possible price.
It may seem slightly trivial, but over a long period
of time, even small differences in prices can be magnified
into large fluctuations in your overall wins or losses.
A final point, is that you are less likely to have
to change bookmakers if you consistently win, than with
traditional forms of betting. If you persistently make
money from a bookmaker, the time will come fairly quickly
where they may stop taking bets from you. This is less
likely to happen with a spread betting firm, who need
a high turnover to balance their books, maintain their
margin and keep the market liquid.
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