How Does A Spread Bet Work

How Does A Spread Bet Work
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Posted: Jul 28, 2021 Last updated: Aug 26, 2022
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Point spread betting is a popular form of betting, especially with basketball and football, since these are two sports where more points are scored throughout the game than in other sports like baseball and hockey. Therefore, it’s essential to understand how point spreads work before placing a wager.
Always pay attention to line movement and monitor point spreads on multiple sportsbooks to get the best bang for your buck, as this will help put you in the best position to succeed as a point spread bettor.
As is the case with moneyline bets, point spreads involve betting on a favorite or underdog in a given game. If you bet on a favorite, they need to win the game by more than their assigned point spread. For example, if I take the Tampa Bay Buccaneers (-7.5) on the point spread, that means that they need to win by at least eight points for me to win my bet.
If you bet on an underdog, they must either win the game outright or lose by a smaller margin than the assigned point spread. So, for example, if I bet on the Philadelphia Eagles (+3.5) and they lose by three or fewer points or win the game outright, I would win my bet.
When it comes to NFL betting, the favorite is assigned a spread for the projected winning margin. They need to win by more than the spread for you to win your bet. If you take the underdog, you can win your bet if they win outright or lose by fewer points than the spread allows.
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The favorite is assigned a spread for the projected winning margin. They need to win by more than the spread for you to win your bet. If you take the underdog, you can win your bet if they win outright or lose by fewer points than the spread allows.
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The favorite is assigned a puck line of (-1.5) and the underdog of (+1.5). In this case, if you bet the favorite, they have to win by two or more goals. You will likely have a payout ranging from (-130) to (+200) for a favorite on the puck line.
If you bet on the underdog, this means that they can lose by one goal or win outright for you to win the bet. Betting on the underdog on the puck line is a costly decision, as it’s usually priced (-170) or higher.
The NHL betting site to place spreads bets is FOX Bet. They have very competitive odds and plenty of promotions. :
The favorite is assigned a run line of (-1.5) and the underdog of (+1.5). In this case, if you bet the favorite, they have to win by two or more runs. You will likely have a payout ranging from (-130) to (+200) for a favorite on the run line.
If you bet on the underdog, this means that they can lose by one run or win outright for you to win the bet. Betting on the underdog on the run line is a costly decision, as it’s usually priced (-150) or higher.
Soccer includes spreads when it’s between two unevenly matched teams. In these types of games, favorites are given spreads between 1-3 goals. This means that they need to win by more than that spread for you to win your bet.
A point spread is assigned based on the projected outcome of the game.
Home-field advantage is a huge factor in the point spread. For example, if the Kansas Chiefs play the Denver Broncos at home, the Chiefs would likely be favored by 10.5 points. However, if the game were in Denver, the Chiefs would be favored by about 4.5 points. The impact of home-field advantage depends on the team playing with it — some teams do not have as favorable a crowd or atmosphere as others. Denver, for example, is a particularly tough place to play, given the altitude.
There are other factors like injury status, current form and overall talent in the game. It’s important to keep track of the latest news around the league to find value on point spreads.
It’s also worth noting that some teams just aren’t very good at covering the spread while favored in the game. For example, a team might have a good record but had won numerous close games, so they might not be as good against the spread. This statistic is also worth keeping an eye on.
Keep in mind, that there are other types of sports bets worth taking into consideration.
A push is when the final result of the game lands precisely on the number of the spread. For example, if I bet on the Toronto Raptors (-4) over the Orlando Magic and the Raptors win by four, I would push my bet, which means that my money is refunded and the bet ends in a tie. Games with halves in their point spreads, like the Dallas Cowboys (-3.5) over the Atlanta Falcons, will never result in a push.
The favorite is the team projected to win the game. They are assigned a point spread with a minus symbol (-) in front of the number, such as Pittsburgh Steelers (-6.5). If you were to bet on the Steelers to cover the spread in this instance, Pittsburgh would need to win by seven or more points for you to win your bet.
The underdog is the team that is projected to lose the game. They are assigned a point spread with a plus sign (+) in front of the number, such as Carolina Panthers (+5.5). In this case, the Panthers would need to lose by five points or fewer or win outright for you to win your bet.
Be sure to learn how to bet on sports before wagering.
When betting on the point spread in the NFL, you need to remember key numbers. A touchdown, for example, is worth seven points, while a field goal is worth three points. The key numbers are three, seven, and ten points.
The difference between a 2.5-point spread and 3.5-point spread is vast, as you may end up losing your bet if your team loses by way of a game-winning field goal (three points). 6.5-point spreads, 7.5-point spreads, 9.5-point spreads and 10.5-point spreads are also worth keeping an eye on as final scores are often within three, seven, and ten points.
It’s also worth mentioning that the home team usually gets an imaginary spread of three points. If a home team is favored by (-2.5), the oddsmakers are telling you that the road team is the superior team. You should keep a close eye on home teams that are favored by few points, as it’s often the sharper play to go with the road team in those situations.
You don’t need to worry about key numbers as much in the NBA, but I would advise always betting on the point spread when betting basketball. More often than not, if the team wins the game, they’re able to cover the spread. But, at the same time, be careful with high spreads in the NBA.
Betting on a favorite of 10 or more points can come back to bite you in the NBA, as teams tend to send in their subs when up double-digits in the fourth quarter, which can allow the opponent to cut down the lead — resulting in something called a back-door cover. These exist in the NFL as well.
In NHL, MLB and soccer, tread lightly with spreads. Only take the underdog if they aren’t priced too high — often, you’ll see them at (-200) or higher, which is far too risky. It’s also tough to take the favorite, especially if they end up winning by only one goal. However, it could be profitable since you get some solid value on the favorites. I prefer betting on the spread in MLB than NHL or soccer because baseball teams usually win by more than one run.
Point spreads involve a winning margin. If you bet on a favorite, they need to win by more than the assigned spread. For example, if a spread is (-7.5) points, your team needs to win by eight or more. If you bet on an underdog, they can lose by fewer than the assigned spread or win outright for you to win. For example, if a spread is (+5.5) points, your team can lose by 5 or fewer or win outright.
Moneylines just require your team to win the game outright — the winning margin does not matter in this type of bet. Each team will be assigned a moneyline based on their projected probability of winning the game. For example, the Los Angeles Dodgers might be (-250) at home against the Rockies, who might be (+190). In this case, you would risk $25 to win $10 if you take the Dodgers. You would win $19 on a $10 bet if you took the Rockies.
It is better to choose moneyline in MLB, NHL, and soccer when taking favorites because the price is too high in the NFL or NBA. For example, if you took the Chiefs moneyline and they were favored by 7 points, you’d likely be laying (-400), which means you’d be risking four times your bet. However, it could be profitable for you to go with the moneyline on underdogs in the NFL or NBA since they’ll provide some nice value.
Point spread bets are good because they allow you to take heavily favored teams without incurring the financial risk involved. For example, let’s say the Chiefs are favored by 10 points against the Raiders. If you were to bet on them to win on the moneyline, you would likely be risking seven times your original bet. In this case, you can take them to win by more than 10 points and only have to pay a (-110) price.
Another reason to consider spread betting is that you can take an underdog without worrying about that team winning the game. For example, if I took the Raiders (+10) against the Chiefs, I would still win my bet if they lost by nine points or fewer. Point spreads allow bettors some options when deciding on who to take in a particular game.
One negative of point spreads is that it can be difficult for a team to win by the assigned margin. You can handicap the game well, only to have your team’s quarterback throw a late interception for a touchdown that would lower their winning margin, causing you to lose your bet.
Another negative is how difficult it is to choose the point spread in hockey or soccer correctly. There are so many one-goal games in these sports that you’ll often find yourself with a bad beat with your team only winning by one goal, which is one of the major downsides of spread betting.
Before joining The Game Day, Frank spent three years in the fantasy sports and betting industry, writing for websites like RotoBaller and 4for4football. Frank is an active member of the fantasy baseball and fantasy football community, participating in high-stakes leagues like NFBC/NFFC as well as industry competitions like Scott Fish Bowl, RazzBowl, and TGFBI. Frank is a member of the FSWA and IBWAA. Give him a shout to talk fantasy sports and sports betting.

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Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security. It involves placing a bet on the price movement of a security. Investopedia
The primary attraction of financial spread betting is the opportunity to generate large profits with only a small investment. This is because spread betting is a highly leveraged product . In order to place a spread bet, you only need to put up a small margin deposit, as little as about 3% of the value of the underlying financial asset.
You can pretty much spread bet any financial market out there so long as it has a verifiable price.
Spread bets do not incur any commission fees. The majority of the costs to trade are included in the spread.
Because traders stake in their base currency they do not have to assume the currency risk of the instrument they are speculating on. This is a bit technical for this part of the guide but trust us, its a big advantage.
Profits from spread betting do not normally attract stamp duty, income tax or capital gains tax in the UK. Spread betting is tax-free because it’s considered by the tax man to be betting, not investing.
You can open a spread betting account at some financial spread betting brokers with as little as £100
For example: a spread bet on a stock price
These are quite rare nowadays. A daily funded bet expires at the end of the trading day; if you have not already closed out your bet before then, it will be closed out at the closing price of the day.
Now the standard and the one used in the Tesco example (you’ll see it specified in the deal tickets above after the name of the market), a rolling daily bet does not expire at the end of the day. It “rolls over” to the next trading day, and will remain open until you close it out, you are stopped out of the trade, your bet is closed out by the spread betting company due to insufficient margin, or the trade is closed out by hitting a chosen “take profit” level. The spread betting company charges an overnight funding fee.
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Some traders and investors are a bit reluctant to venture into the world of financial spread betting , simply because it’s a financial product that they’re unfamiliar with.
However, the fact is the spread betting process is one of the simplest types of financial trading there is, much less complex than, for example, the practice of writing options.
We’re moving on to Part II of the guide where we explain what spread betting is and how it works. In this chapter, we’re going to show you exactly how spread betting works, complete with examples of spread bets.
Before we get into that though, let’s briefly recap exactly what spread betting is.
Profits are made from betting correctly on which direction the price of a given financial asset will move – up or down. You do not have to predict an exact price the asset will attain – just the direction the market price will move in.
This tax-free treatment has made spread betting very popular in the UK, where it is authorised and regulated by the Financial Conduct Authority (FCA).
The first move required to begin spread betting is to open an account with one of the many spread betting brokers. If you’re new to spread betting and want to try out some of your trading strategies before risking real money, you can open a spread betting demo account to practice trade in.
Because spread betting is so highly leveraged, you can start betting with just a small amount of capital. Therefore, many financial spread betting brokers only require a minimal deposit to open an account and begin trading.
You can open a spread betting account at some financial spread betting brokers with as little as £100. However, you should set your expectations of a reasonable rate of return – remember the best traders at hedge funds are probably happy with a 25% annual return on capital.
In short, you’ll probably be in a better position to begin trading if you open your spread betting account with more than just the minimum required initial deposit.
Keep in mind that spread betting is speculation, so you should be sure to fully understand the risks involved and only spread bet with money that you can afford to lose.
Spread betting companies offer a variety of spread betting platforms for you to place your bets through. The most common types of betting platforms are as follows:
Web-based trading platforms. With a browser or web-based platform, you trade through a direct internet/web connection, usually through the spread betting company’s website.
Downloadable trading platforms. These trading platforms are software programs that you download. They frequ
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How Does A Spread Bet Work

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