You may be familiar with the concept of spread betting. The idea behind it is simple: you place a bet on the outcome of a sports game, and in return, you’ll get a return of mostly free money. The problem is, not all sporting events are created equal, and it can be tricky to quantify the exact return on investment you may or may not get from your bet.
Let’s take a look at how to calculate spread betting so you can see if it’s really worth taking the plunge.
The Basics Of Spread Betting
To begin with, let’s look at the basics of spread betting in general:
- The goal is to make money from the bets you place;
- You can place bets on virtually any sporting event or racing event (though not all countries will allow you to do so legally);
- Your bets can be on the outcome of the game (usually a winner-take-all approach);
- You’ll need to have a good understanding of basic mathematics (commonly known as “spread betting equations”) in order to place winning bets. If you’re looking to get into spread betting, you can find a good primer on the subject by checking out this resource;
What Is The Margin Of Spread Betting?
One of the first things you’ll need to understand when getting into spread betting is what is the margin of spread betting. Essentially, the margin of spread betting is the amount of money you have to risk on any given bet. For example, if you bet $100 on a sporting event with a $100 minimum bet, your margin of spread betting is $100. What this means is that if the game ends in a tie, you’ll lose your $100. The other $100 will go toward your winnings. If the game ends in a victory for the home team or race, you’ll win double your money back ($200).
This is a highly effective way of using sports as a form of gambling. One of the major draws of spread betting is the ability to use leverage, creating almost an infinite array of potential winnings based on the outcome of a game. However, this advantage comes with a high risk level; if you don’t know how to properly calculate the margin of your spread bet, you could find yourself in a very costly situation.
Understanding Betting Returns
Now that you understand the basics of spread betting, let’s talk about what you need to know in order to get the best possible return on your investment. As mentioned above, one of the major selling points of spread betting is its flexibility in allowing you to use leverage. Essentially, this means you can put more money on the line than you have to risk. This is extremely effective when trying to maximize your returns from a wager.
Since you have the opportunity to use leverage with spread betting, you’ll need to make sure you take the proper precautions. For example, you should look into opening a business account with a reputable online casino, as well as reading reviews from previous clients on sites like bettingreviews.com. This will allow you to take advantage of the leverage afforded by spread betting, while also providing you with some insurance in case things go badly.
Using Formulas To Calculate Spread Betting
The good thing about spread betting is its ability to be very simple to understand and put into practice. Simply follow the formulas below and you’ll be able to maximize your returns.
- Figure out the Total Amount Of Money You Need To Risk;
- Determine how Much Money You Have To Risk (Your Margin);
- Place Your Bet;
- See How Much Money You Made (Or Lost);
Let’s break these formulas down. The first step is to figure out how much money you need to risk. For example, if you are using $100 as your margin (as described above), then you need $400 to risk $100 on sports events. If you are using $200 as your margin, you’ll need $600 to risk $100 on sporting events. Keep in mind: you’ll need to put up at least the amount you have to risk in order to place a wager.
Once you have that money in place, you can determine how much you have to risk by using your margin as follows:
- Figure out your Total Amount Of Money You Need To Risk (TAMON);
- Subtract Your Margin From TAMON (Total Amount Of Money You Need To Risk – Your Margin = TAMON – Margin = TAMON-Margin);
- Round Up To The Nearest Dollar (if necessary); and
- Use That Number To Determine How Much You Have To Risk.
TAMON is an acronym for Total Amount Of Money You Need To Risk. It is used to quantify the amount of financial leverage you have at your disposal when placing a bet. The closer this number is to your starting capital (the more Margin you have at your disposal), the more effective your risk-taking will be. Keep in mind: if you put more money on the line, you have more opportunity for profit. However, this also means you have more risk of loss.
Calculate Your Profit (Or Loss)
The second step in calculating your profit (or loss) from spread betting is to figure out how much you actually made (or lost). Once you have your bet set and ready to go, you may track its progress via the “Profit/Loss” section of your online casino account. This section will show you the last updated amount of money you have to risk, as well as how much money you actually won or lost on your bet. Some casinos will even provide you with an overview of how you stand at the moment:
- Profit/Loss;
- Your Margin (the amount of money you have to risk);
- Your Bankroll (the total amount of money you have at the casino, which is used for placing bets).
If you want to see how much you won (or lost) on a given bet, simply click on “Profit/Loss” (or a similar link) and you’ll be taken to a screen showing the last updated amount, along with the actual earnings for that bet.
Legal Issues
It is extremely important to note that while almost all countries allow you to gamble online, not all of them allow for spread betting. Some countries, especially those in Europe, do not officially recognize the practice as a form of gambling. Make sure you are aware of legal restrictions in your area before getting into spread betting.
Summary
With spread betting, you are essentially placing a wager on the outcome of a sporting event. Essentially, this involves making a guess or an informed judgment about whether the sporting event will end in a victory or defeat. While this type of wagering can be fun and rewarding, it can also be very risky. As long as you are aware of this, you can effectively use these platforms to make money. However, as with any type of gambling, always remember the risks before getting started.