Other Bets Props and Futures Some other fun bets that can be made on basketball include prop bets and futures. How To Bet News. Handicapping Your Basketball Bets When oddsmakers set the lines, they take many factors into consideration. If you have even one loss, you lose the entire bet. On the other hand the Magic must either win outright or lose by 3 or fewer points for a Magic spread bet to payout.
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. The popularity of financial spread betting in the UK and some other European countries, compared to trading other speculative financial instruments such as CFDs and futures is partly due to this tax advantage. However, this also means any losses cannot be offset against future earnings for tax calculations. Conversely, in most other countries financial spread betting income is considered taxable.
For example, the Australian Tax Office issued a decision in March saying "Yes, the gains from financial spread betting are assessable income under section or section of the ITAA ". This has resulted in a much lower interest in financial spread betting in those countries. Financial spread bet example[ edit ] Suppose Lloyds Bank is trading on the market at p bid, and p offer.
A spread-betting company is also offering p. By contrast, spread betting profits are exempt from this tax in the UK and Ireland, helping you to maximise your return from these bets. Note that tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK. From commodities and indices to the foreign exchange forex market and stocks and shares, many brokers offer more than 10, different financial instruments to choose from.
As a newbie trader, you have the option to stick with what you know or place your bets across a wide variety of options for diversification. If its value decreases, you will lose money on your investment. Spread bets differ from this in that you are not investing in or buying the actual market asset.
Instead, you are wagering on whether its value will rise or fall. Bets on the value rising are known as taking a long position, while ones, where you are betting on a drop in the valuation, are called taking a short position. What it means in practice is that you have two potential ways to profit from your trade rather than just one.
What should newcomers bear in mind? Perhaps the single most important thing for people new to spread betting to remember is that it is still possible to lose heavily. Furthermore, any loss will be worked out based on the full position, which is always higher than the margin that you bet. It can be boiled down to this: should the market that you bet on rising 20 points in value, you will profit by 20 times what you bet.
On the other hand, if you take a long position and the market drops 20 points in value, you will lose 20 times what you bet on it.
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|Nikos place salisbury menu for diabetics||Spread bets, on the other hand, do have fixed expiration dates when the bet is first placed. We will go into this in more detail later. CFDs Many spread betting platforms will also offer trading in contracts for difference CFDswhich are a similar type of contract. But the reverse is also true. However, while spread bettors do not pay commissions, they may suffer from the bid-offer spread, which may be substantially wider than the spread in other markets. The more info of spread betting fits exactly into this description. The CFD is thus a tradable security established between a client and the broker, who are exchanging the difference in the initial price of the trade and its value when the trade is unwound or reversed.|
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First of all, spread betting is a leveraged financial product. Leverage allows you to take significantly larger positions than your capital on its own would allow. Thus, the bigger the . 12/24/ · Is Financial Spread Online Gambling Legal in the US. Spread betting is a speculative practice that started in the s as a method for bettors to cash in on . 5/21/ · Financial spread betting is an excellent method for smaller shareholders to exchange without even investing in a sizable financial investment decision. Unlike stakes in .