Winning A Spread Bet

Winning A Spread Bet

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What Is A Spread In Sports Betting?

What Does The + And – Mean In Sports Betting?

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Like to bet on sports but not a big fan of doing semi-complicated math? Then point-spread wagering was made for you.
Simple addition and subtraction—that’s all you need to know to grasp the nuances of spread betting, which is by far the most popular form of wagering for two of North America’s most popular sports: football and basketball (both college and pro).
What follows is a primer on how to wager on point spreads, including examples from multiple sports.
A point spread is nothing more than a bookmaker giving one team (or player) a head start in a game or event. In sports betting, this head start comes in the form of points (football, basketball), runs (baseball), goals (soccer, hockey), strokes (golf) and games or sets (tennis).
The idea is simple: If you wager on the team receiving the head start, you’re wagering on the underdog and hoping for one of two results: Either the team wins outright, or it keeps the final margin within a specific number of points/runs/goals. That number, established by oddsmakers, is called the point spread.
Conversely, if you bet on the team that starts from behind, you’re betting on the favorite, which needs to win by a margin greater than the point spread to cash your wager.
The point spread number in any game/event is always the same for both teams. The only difference: The spread associated with the favorite is denoted with a minus (-) sign, while the spread attached to an underdog carries a plus (+) sign.
Here’s how a point spread is expressed in an NFL game:
In this example, if you bet the Titans on the spread, you’re “getting” 3.5 points right from the start. You can win that bet one of two ways: The Titans defeat the Colts (win outright) or lose by one, two or three points.
A wager on Indianapolis means you’re “giving” 3.5 points—so before the game even kicks off, you’re losing 3.5 points to zero. That means the Colts not only must win the game, but they have to prevail by a margin of at least four points.
In this scenario, if the final score is Colts 23, Titans 21, Tennessee would “cover” the 3.5-point spread. However, if the Colts prevail 27-21, they would “cover” the spread.
Regarding spread betting, remember this: If you bet on the favorite (-3.5), you’re “giving away” those points throughout the entire contest. If you bet on the underdog (+3.5), you’re “getting” (or “receiving”) those points from start to finish.
Point spreads are expressed two different ways: as whole numbers (-6, -10, +13, +21) and fractions/decimals (+4.5, -8.5, +11.5).
Any point spread that has that extra half-point (or half-run, half-goal, etc.) means no matter what the game/event outcome is, there will be a definitive winner and loser from a betting perspective.
However, when that half-point—referred to as “the hook” in betting parlance—is absent from a point spread, it’s possible the final score on the field could result in a tie (or “push”) for wagering purposes.
Here are two NBA examples involving a hypothetical Milwaukee Bucks vs. Phoenix Suns matchup:
Betting result: Bucks spread bettors lose (didn’t win by at least six points); Suns bettors win (lost by fewer than six points)
Betting result: Push (the game was decided by the exact point spread of 5 points)
In the latter situation, all point spread bets are refunded. That is, everyone who wagered on Bucks -5 would get their money back, as would everyone who wagered on Suns +5.
It’s not uncommon for point spreads to move up and down—and it can happen multiple times in the span of hours or even minutes. This “line movement” tends to occur most frequently the closer you get to game time.
Why do sportsbooks make these adjustments? There are numerous reasons, but here are the three most common:
Lopsided betting action: A sportsbook’s ultimate goal is to have the same amount of money bet on both sides of every game/event (thus limiting the book’s financial liability).
So let’s say a bunch of five-figure wagers come in on a 4-point underdog, and the other side (4-point favorite) has only received a few hundred dollars in bets. In this case, the book might adjust the point spread to -3.5/+3.5 or even -3/+3 to balance out the action (that is, attract more money on the favorite and less on the underdog).
Injuries/suspensions/trades/rest: When news breaks that a key player won’t be suiting up—the quarterback in football; the starting pitcher or best hitter in baseball; the top player in basketball; the goalie in hockey—you can be sure oddsmakers will adjust the point spread. How much depends on the missing player’s worth to his/her team.
Weather: Obviously, this pertains to outdoor sports only, but inclement weather—wind, rain, snow, etc.—can lead to a point spread shift. That said, poor weather more often leads to line moves with totals (i.e., the Over/Under) than spreads.
In almost all instances, whenever making a point spread wager, bettors must pay a fee called the “vigorish” (also known as “the vig” or “juice”). This fee is displayed in the same manner as moneyline odds.
The standard odds for spread wagers is -110 for both the favorite and the underdog. That means no matter what side you’re taking, when the vig is -110, you must wager $110 for every $100 you want to win, $11 to win $10, or $1.10 to win $1.
(Note: Some sportsbooks won’t even list “-110” on their betting boards and apps—it’s just assumed that’s the vig.)
Sometimes, oddsmakers will adjust the juice rather than move the point spread up or down a half-point (or more).
So let’s say the New England Patriots are facing the Miami Dolphins; the point spread is Patriots -3.5/Dolphins +3.5; and most bettors are wagering on New England. Instead of shifting the spread to Patriots -4/Dolphins +4 (with -110 odds on both sides), the sportsbook might retain the -3.5/+3.5 spread number but move the vig to Patriots -120/Dolphins +100.
In this instance, bettors backing New England have to risk $120 to win $100 and need the Patriots to win by at least four points. Dolphins bettors would risk $100 to win $100 (even-money odds) and need Miami to win the game or lose by no more than three points.
The answer to this question: It depends on which side wins the wager, the bettor or the book. When bettors come out on top—no matter if it’s a spread or moneyline wager—they get the juice back as part of their winnings. But when a bettor loses, the sportsbook retains the vig (think of it as the “cost” of doing business with the sportsbook).
Here are two examples that illustrate where the vig ends up:
Matchup: Baltimore Ravens vs. Pittsburgh Steelers
Point spread: Ravens +6.5 (-110)/Steelers -6.5 (-110)
The wager: $110 (to win $100) on Steelers -6.5
Betting result: Bettor wins and collects $210 (original $110 wager, plus $100 in winnings)
Matchup: Baltimore Ravens vs. Pittsburgh Steelers
Point spread: Ravens +6.5 (-110)/Steelers -6.5 (-110)
The wager: $55 (to win $50) on Steelers -6.5
As we’ve detailed, spread betting with football and basketball is as basic as it gets. You’re either “giving” points (betting on the favorite) or “receiving” points (betting on the underdog). The rest is simple math (add to/subtract from the final score).
With other sports, spread betting is a bit different (yet still not all that difficult to comprehend).
Most bettors who wager on the NFL, NBA, and college football and basketball stick with the point spread. However, the moneyline is usually the preferred format for sports like the NHL, MLB and soccer.
The main reason: Football and basketball are higher-scoring sports that often feature final scores with wide margins (35-17, 122-101, etc.). Point spreads help tighten those margins in the betting market.
Conversely, baseball, hockey and soccer are traditionally lower-scoring sports with tighter victory margins (6-4, 4-3, 1-0, etc.). As a result, the “point spread” is always a low number.
In baseball, the spread is referred to as the “run line” and is always listed as -1.5 (favorite)/+1.5 (underdog). In hockey, it’s called the “puck line,” and just like baseball, it’s always -1.5/+1.5.
For a run line/puck line favorite to “cover the spread,” it must win by multiple runs/goals, while a run line/puck line underdog must win outright or lose by no more than one run/goal.
As for soccer, the spread is known as the “goal line”. Considering that fútbol is the lowest-scoring team sport on the planet, it shouldn’t be surprising to learn that the goal line is usually listed at -0.5/+0.5.
Here’s what that means: If you bet a favorite on the goal line (-0.5), it must win the match—if the final score is a tie, you lose your wager. But if you bet a goal-line underdog, you can cash with an outright win or a tie (because you’re “getting” half a goal).
As with football and basketball, spread wagering in other sports comes with vigorish attached. The key difference? Whereas the vig in football and basketball spread betting is most often -110 on both sides, in the other sports, it can vary greatly. And it’s all correlated to the moneyline odds.
Here are two examples (one from MLB, one from the NHL):
If the moneyline for a Texas Rangers-Houston Astros game is Astros -220/Rangers +190, the associated run line probably would be Astros -1.5 runs (-115)/Rangers +1.5 runs (-105).
Perhaps you like the Astros’ chances to beat the Rangers on this day but aren’t interested in laying -220 odds on the moneyline (that is, betting on Houston to win the game, regardless of the victory margin). You can instead choose to bet the Astros on the run line at -115 odds.
So you’ve essentially cut the odds price in half (from -220 to -115), but here’s the tradeoff: Houston has to win by at least two runs for you to win your bet.
Switching to the NHL, let’s say the moneyline in a Vegas Golden Knights-Colorado Avalanche game was tight, something like Vegas -120/Colorado +110. The puck line odds would be much more extreme, roughly Golden Knights -1.5 goals (+170)/Avalanche +1.5 goals (-190).
Why? Because oddsmakers believe this contest is a virtual toss-up (hence the tight moneyline odds). The puck line odds tell you it’s more probable that Vegas wins by exactly one goal (or loses outright) than wins by multiple goals.
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Spread betting lets people speculate on the direction of a financial market or other activity without actually owning the underlying security; they simply bet on its price movement. There are several strategies used in spread betting, from trend following to news-based wagers. Other traders look to capitalize on rare arbitrage opportunities by taking multiple positions in mispriced markets and putting them back in line.

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The Basics of Options Profitability

Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security.

An outright option is an option that is bought or sold individually and is not part of a multi-leg options trade.

Options are financial derivatives that give the buyer the right to buy or sell the underlying asset at a stated price within a specified period.

A derivative is a securitized contract whose value is dependent upon one or more underlying assets. Its price is determined by fluctuations in that asset.

An iron condor involves buying and selling calls and puts with different strike prices when a trader expects low volatility.

A short call is a strategy involving a call option, giving a trader the right, but not the obligation, to sell a security.

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Among the many opportunities to trade, hedge or speculate in the financial markets, spread betting appeals to those who have substantial expertise in identifying price moves and who are adept in profiting from speculation . One thing should be made clear: spread betting is currently illegal in the United States. 1 That said, it's still a legal and popular practice in some European countries, particularly in the United Kingdom. For this reason, all examples quoted in the following strategies are cited in British pounds, or GBP (£) .

Spread betting comes with high risks but also offers high-profit potential. Other features include zero taxes, 2 high leverage , and wide-ranging bid-ask spreads . If spread betting is legal in your market, here are few strategies you could follow.

Popular betting firms like U.K.-based CityIndex allow spread betting across thousands of different global markets. Users can spread bet on assets like stocks, indices, forex, commodities, metals, bonds, options, interest rates, and market sectors. 3 To do so, bettors often apply trend following , trend reversal , breakout trading, and momentum trading strategies for various instruments, and across various asset classes such as commodities, FX, and stock index markets.

Corporate moves can trigger a round of spread betting. For example, take when a stock declares a dividend and the dividend subsequently goes ex (meaning to expire on the declared ex-date ). Successful bettors keep a close watch on particular companies' annual general meetings ( AGM ) to try and get the jump on any potential dividend announcements, or other critical corporate news.

Say a company whose stock is currently trading at £60 declares a dividend of £1. The share price starts to rise up to the level of the dividend: in this case, somewhere around £61. Before the announcement, spread bettors take positions intended to gain from such sudden jumps. For example, say a trader enters a long-bet position of 1,000 shares at £60, with a £5 per point move. So in our example, with the £1 price increase upon the dividend announcement, the trader gains:

Similarly, bettors will seek to take advantage of the dividend's ex-date. Assume that one day before the ex-date, the stock price stands at £63. A trader may take a short position of 1,000 shares with a £10 spread bet per point. The next day, when the dividend goes ex, the share price typically falls by the (now-expired) dividend amount of £1, landing around £62.

The trader will close his position by pocketing the difference: in this case, a £10,000 profit:

Experienced bettors additionally mix spread betting with some stock trading. So, for instance, they may additionally take a long position in the stock and collect the cash dividend by holding it beyond the ex-date. This will allow them to hedge between their two positions, as well as gain a bit of income through the actual dividend.

Structuring trades to balance profit-and-loss levels is an effective strategy for spread betting, even if the odds aren't often in your favor.

Say that on average, a hypothetical trader named Mike wins four spread bets out of five, with an 80% win rate. Meanwhile, a second hypothetical trad
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Winning A Spread Bet

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