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Sports Betting 101: Understanding the basics
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Sports betting has exploded across America following the 2018 Supreme Court ruling that struck down the Professional and Amateur Sports Protection Act . What was once limited, legally, to Nevada has taken root in states across the country as sportsbooks open up shop wherever legislation allows. Suddenly there’s a new angle to primetime NBA games and NFL Sundays beyond wins, losses, and playoff races.
That can be overwhelming if you’re new to the game. Fortunately, we’ve got you covered with some basics that can offer betting insight beyond smiling and nodding when your friends bring up overs, unders and the spread. Let’s discuss the terms you need to know:
A number created for every betting matchup; the goal is to have an equal amount bet on each side
This is the bettor’s answer to “how many points would you have to spot this bad team in order for them to beat a better team?” Let’s say the favorite in an NFL game is favored to win by a touchdown; they’d have a -7 distinction on the betting line. Their opponent, the underdog, would be listed at +7.
Since whole numbers leave the possibility for ties, most spreads end in .5 even though there’s no way to score half a point in most sports. In our scenario, the favorite would be listed at -7.5. That means they’d have to win by at least eight points to cash that bet. Betting the underdog at +7.5 means they could still lose on the scoreboard but win at the sportsbook, but only if the final margin is fewer than eight points.
That’s called covering the spread. Great teams do it .
The profit you’d return for betting on straight up wins and losses
Betting the money line is less common since the odds for the favorite are less profitable than the spread. The money line for each team is a three-digit number. For favorites, it tells you how much you’d need to bet in order to win $100. A -400 favorite means you’d have to plunk down $400 to make a $100 profit in victory — much worse odds, but you also don’t have to worry about the spread.
The number is different for the underdog; it’s an indicator of how much you’d win with a $100 bet. A +350 line means not many people think the underdog has a chance, but if they pull it off you’d pocket an extra $350 for your faith. Like in horseshoes and hand grenades, “close” doesn’t count; you’ve gotta win the game outright.
Betting the amount of points scored
Another simple mechanism. The total is the projected total amount of points, goals, runs, etc., scored in a game. Bet the under if you think the final score will be less than that number. Bet the over if you think the final score will be more.
Both sides will have a money line attached, though they won’t vary nearly as wildly as the money lines for picking winners and losers. The over is the only bet you can cash before the game goes final if the score exceeding the total before the final whistle. The under is a little more low key, but a vital tool if you’re a believer in defense.
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Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security.
Guerrilla trading is a short-term trading technique that aims to generate small, quick profits while taking on very little risk per trade.
Investing is allocating resources, usually money, with the expectation of earning an income or profit. Learn how to get started investing with our guide.
An outright option is an option that is bought or sold individually and is not part of a multi-leg options trade.
In sports betting, a parlay bet is a bet made up of two or more individual wagers. Combining bets makes them harder to win but increases their payout.
The HSX or Hollywood Stock Exchange is an online prediction market where people place virtual bets on the performance of the entertainment industry.
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Spread betting can yield high profits if the bets are placed correctly. Most spread betting traders are successful only after creating a systematic trading plan following years of experience. Only a small percentage succeed and the majority fail. We look at the important factors for success and profitability for spread betting.
NOTE: Although popular in Europe and particularly in the United Kingdom, spread betting is illegal in the United States. The Commodity Futures Trading Commission prohibits the sale of foreign security futures products to retail investors based in the U.S. 1
Assume a stock is trading at 300 pence. But due to its illiquid nature, the bid-ask spread is wide at 290–310 pence. Because of the wide spread, a buyer who pays 310 pence for their position doesn't make a profit even if the stock jumps 3.33% to 310 pence.
Now take a similarly priced but highly liquid stock. Its spread is tighter at 298–302 pence. A buyer who pays 302 pence for the position will profit after a smaller move. Betting on instruments with tight spreads improves the potential for profits significantly.
How much total trading capital is available? How much money will be used per spread bet? How frequently will spread bets be placed? Answers to such questions help create an efficient trading plan.
Having £50,000 and blowing £25,000 on a first bet will leave you at a significant loss. With the remaining £25,000, you need to gain 100% profit just to recover your lost money. The profitability of spread betting can be improved substantially when one enters with a clearly defined spread betting plan, which is based on total capital, bet amount per sequential bet, and frequency of placing the bets.
Structuring bets properly can allow one to be profitable in the long run, even if your losing trades outnumber your winning trades. Consider Ami, who on average wins 4 of every 5 bets, while Ben only wins 1 of every 5 bets. Whose trades are more profitable?
On the surface, the answer would seem to be Ami, but it depends on bet sizing and the risk-reward scenario.
The key is placing bets in the right size given the risk versus potential reward. Losing multiple small bets for the chance of a single big win can pay off if trades are structured properly.
A UK-based spread betting firm like CityIndex offers spread betting across 45 global markets, with asset classes including stocks, indices, forex, commodities, metals, bonds, options, interest rates, and sectors.
Most novices tend to simultaneously play around in multiple markets and securities without a clear understanding. One should build expertise in a few asset classes. Attempting to generalize will lead to mounting losses.
Most spread betting firms offer a free practice demo account. Learn the tricks of the trade, backtest the structured betting plan, and practice it multiple times before jumping in with real money. Markets will remain forever, but real money lost during an initial phase of ignorant and inexperienced attempts will be difficult to recover.
Once comfortable with virtual returns, enter with real money. Start small and then expand as the betting profits increase.
Spread betting is available on leverage , which magnifies profit (and loss) exposure despite limited capital. With £100, a 10% leverage margin can allow one to make bets for up to £1,000. Leverage is a double-edged sword. It magnifies profits when a bet works favorably, but also the losses if it goes wrong.
Successful spread bettors use leverage efficiently with tight controls, while novices get tempted to take large positions and end up blowing their accounts. Controlling the leverage usage, based on a realistic availability of the capital amount, is necessary for success in spread betting.
While devising a trading plan, or while comparing performance from different trading activities, it is important to factor in the tax benefits available in spread betting. This is a very significant factor in making genuine profits.
Spread betting, though illegal in the U.S., is very popular in the U.K. and European countries. It offers potential for high profits, but most traders when they start due to inexperience. Building sufficient knowledge, selecting the right instruments, and practicing and backtesting a trading system can assist in generating profits from spread betting.
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A total or over/under bet is a single wager on whether or not the combined goal, point or run total of a single game will be over or under what the oddsmaker sets it at before the event. When placing a total wager, all the bettor is concerned with is the combined score of each team at the end of the game.
Vikings +7 Over/Under 42
Packers -7
Steve loves the Packers and thinks they will score a lot of points in this game. So, he places a wager on “over 42 total points”. If the combined score of the Packers and the Vikings at the end of the game is greater than 42 total points Steve would win his bet. 41 or less total points would be a loss and 42 exactly would be considered a push or refund.
Most sports books consider the end of regulation time or the point at which a game becomes official as the end of the game unless otherwise stated.
Are you new to Sports Betting? If you are or, if you just want to try betting an unfamiliar sport, here are some guides to help you out!
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Home » Sports Betting Guides » Basic Bet Types Explained: Moneyline, ATS, & Over Under
Basic Bet Types Explained: Moneyline, ATS, & Over Under
We cover all types of single game bets to get you wager on Need to know everything about the moneyline? We've got you covered We also cover against the spread (ATS) betting as well as over under betting
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Sports betting basics – Betting Odds Explained
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Stepping into the world of sports betting is very intimidating initially. Like anything in life, it’s best to be prepared beforehand. That’s why it’s important to know the basics of betting, which we will cover in this guide. There are three main types of bets: moneyline, ATS (against the spread), and Totals (Over/Under). The MytopSportsBooks Basic Betting Types Guide will dig deep explaining each and how they are scored.
For all of the betting types we’ll use the below sample.
It doesn’t get any simpler than the moneyline bet. A moneyline bet is a wager placed on a team to win. In any sport other than soccer , someone wins and someone loses. With a moneyline bet we don’t care how they win as long as they are the winner at the end. Since moneyline is picking a winner it doesn’t get any simpler than that.
Using our example, the Steelers are favored to win over the Bills. We know that because our ROI (return on investment) on the Steelers is lower than the Bills. A $100 wager placed on the Steelers nets $80 while the same bet on the Bills nets $130.
There is one piece of strategy with moneyline wagering. The general consensus is that the majority of the time the betting public supports the favorite. That makes sense as the favorites SHOULD win. With NFL games being played on Sundays sportsbooks usually make opening lines available the Tuesday beforehand. If you believe the Steelers will win it is wise to bet the odds of -125 while you can. Once the volume of bets placed on the steelers significantly outweighs the volume on the Bills the Steelers will become -135 to deter bets. This is all part of the line movement process which we discuss in another one of our guides .
For those interested in betting the Bills it is advised to wait. Odds of +130 could become larger later in the week.
For every major sport except soccer (which includes draws), the moneyline will only offer two options: (1) Team A to win and (2) Team B to win. Since there are no ties in the NFL, MLB, NBA, or NHL these days, sportsbooks always settle your moneyline bets. One team has to win the game. However, it can also be challenging to make a decent return when just betting the moneyline.
The biggest challenge with winning a reasonable return on the moneyline is that, often, there is a substantial favorite — particularly in sports like football and basketball — who is expected to (and goes onto) dominate. Take the Golden State Warriors, for instance, who have run roughshod over the NBA the past few years. It’s been common for them to be -2000 favorites (or shorter) on any given night. In such cases, your options are either to stake a lot of money to win very little, or hope for an upset that is far less likely to happen than the odds suggest. Betting the Warriors repeatedly will see your bankroll grow very slowly, in the best-case scenario. Betting their opponent will, most nights, see your bankroll shrink.
How do you determine your potential payout, precisely? The moneyline number is the potential payout. A negative number represents the amount you have to bet to win $100. A positive number represents how much you will win on a $100 bet. In the graphic above, then, you have to bet $550 on Cleveland to win $100, while a $100 bet on Boston will net you a $375 profit.
For wagering games between two evenly matched teams, or in cases where you are expecting a big upset by an underdog, the moneyline is where you want to look.
But otherwise, you’ll want to try betting against the spread.
To counteract the lopsided nature of some games, sportsbooks place a “spread” on the action. The spread is a certain number of points bookmakers determine the favorite must win by for the bet to cash. The team that has a negative symbol in front of their spread has to win by more than that number, while the team with the positive symbol just has to lose by fewer than that number. You may hear this referred to as “ATS” betting, which just stands for “against the spread.”
To avoid that, sportsbooks usually try and include a half number in the spread (e.g. -17.5), so that one side has to win.
In instances where the spread settles on a whole number and you’d like to avoid a push, you have the option of purchasing a half-point. (By “purchasing,” we mean you will get a lower potential payout, for example, going from -105 to -120.) You can then use that half-point to “move the spread” in your favor. So, if you liked a +3 underdog, you could adjust the spread to +3.5; and if you liked the favorite, you could move it from -3 to -2.5.
Sportsbooks use point spreads to make the game even and they’ve become very popular amongst bettors. Moneyline odds of -600 is very
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