When you are first learning about spread betting, it can be a little tricky to understand exactly what is going on. A lot of terms and phrases are thrown around without much explanation, making it hard to get a full picture of what is happening. In this post, we will run down the meaning of some of the most commonly used terms in spread betting, along with some handy tips on how to use them effectively.
Theory Of Operation
This is the “theory of operation” of spread betting. Simply put, it is the way a particular bookmaker sets their odds on each event. For example, if a bookmaker sets oddsmakers for the Super Bowl to be 7-2, then a bettor would need to get two 7’s to win one Super Bowl bet. The theory of operation takes into consideration things like how likely a particular team is to win the big game, the point spread, and the over/under (total number of points scored) in order to come up with the anticipated payout.
Currency
This refers to the money used to place bets. Most bookmakers offer bets in pounds, dollars, and Euro’s, with some offering bets in other currencies as well. If a bookmaker accepts wagers in Japanese yen, for example, then you will have to go through a currency conversion process to get your money back (in most cases).
Currency fluctuations can be a major source of wagering slippage. For example, if you bet pounds on a football match and the pound drops in value right before the game starts, then you will lose money even though you technically “won” the bet. The reason is because the amount you are betting in pounds is now less than what you actually spent. If you are playing with a 50% wagering bonus at that bookmaker, then the slippage can stack up quickly.
EV / Expected Value
This is the mathematical calculation used to determine the profitability of a spread bet. Simply put, it is how likely you are to win money based on the amount you are wagering. The formula is based on how much you are wagering and the odds of winning the bet. For example, if you wager £100 on a win bet of £150 in pool with a 10% return, then your expected value (EV) is 10%. This means that for every £100 you wager, you will win £10 back, on average. It is a simple enough concept, but one that can be difficult to grasp when you are just starting out. For more information, check out this handy EV calculator from 365bettors.com.
Odds
Odds are simply the odds of something happening. When you are placing a bet with a bookmaker, the lines they give you will be the odds of the event you are betting on happening. For example, if you bet on Manchester United to win the Premier League, their odds will be 3-1. This means that they are betting on Manchester United to win the Premier League, giving them a 3 to 1 chance of winning your bet.
You can use this metric to determine how likely you are to win a bet. If you have calculated your EV and found it to be positive, then you can rest assured that you have worked out the odds correctly and will, in most cases, win money back. However, if you find that your EV is negative, then you will need to consider whether your chances of winning are worth the amount you are risking. This is especially important if you play at a casino, where the house edge is typically higher than it is at a bookmaker. Keep this in mind as you place your next bet.
Bookmaker
This refers to the company that you are using to place your bets. Most people are familiar with the term “bookmaker,” as this is the kind of business that frequently sports books and casinos. However, this term can also be applied to online sportsbooks, where you can place bets on almost any sport and event using several different methods, such as live betting, in-play betting, or lay bets. All you need to do is find the right bookmaker for your needs. Not all online sportsbooks are created equal, so make sure you do your research before you make a decision. With the sheer number of online bookmakers out there, finding the right one for you can be tricky. Luckily, there are plenty of resources online that can help you find the best sportsbook for your needs. For example, the National Sports Book refers to online sportsbooks as “high-quality” sportsbooks, which you can see here. If you are looking for an online bookmaker that is officially approved by the NBA, then check out the list here. Finally, make sure you join a reputable forum, such as OneFootball, where you can ask questions about football (soccer) and receive responses from experienced bettors. This way, you can get all of the information you need, without having to go digging around for it yourself.