If you know the forex market already then you might have an idea on spread betting as well; if not, you should know what is spread betting. It is completely different than other kinds of betting markets. It might surprise you that spread betting system varies from place to place as well. The UK system is not same as the US system.
How Was Spread Betting Created?
In the US, the bettors should analyze the upcoming market change regardless of positive or negative and bet accordingly. In European market the real definition according to the US context is called the “fixed odds” which is different from the US system, “fixed number”. The spread is usually not placed around some fixed number but it usually consists of two numbers. The second number is generally below the fixed number.
Spread betting In The Worldwide Market
In Forex Market, when a share is placed at 4, it becomes the fixed number but this number may move up or down by 1 to 2 points. But it will remain same once the game is about to start. Suppose the number stays at -4 then the bet for the same game in London will be 4 or 5. You can either bet (say, -5) or sell (say, +3). You can conclude saying that spread betting is same as the sports betting.
The Payouts of Spread Betting
In such financial trading you need to bet on the market change with two numbers. Your payment will depend on how close your speculation or prediction was compared to other prediction. You may either win or lose money.
You will have to put some amount initially before you can bet and you can choose the bet size yourself. The calculation is simple. If you win by 10 points then you may earn 7 times the money you have put initially but if you lose then you may lose 12 times the money you have put initially. The stakes are really high though the idea is simple.
The Best Betting Platforms
There are many betters outside the US as well who invest in stock marketing. For beginners it may take time to understand this system and so they are usually at higher risk of losing money than winning. So, it is best to take support of best service providers or platforms like ETX capital. There are plenty of good books on betting as well which can help you understand this system well and help you master strategies.
Spread betting is far more interesting than it seems like any financial market. Its future however depends on the legality based on the region. Soon it will be accepted worldwide and so it is perfect time to start working on this.