Many people are intimidated by the notion of speculating in stocks, especially since a lot of the information they learn about investing is confusing or incomplete. The good news is that there is a fairly straightforward way to get into stock speculation, and that is through spread betting. Spread betting is a lot like traditional stock market investing, but without all of the complexity. To help newbies get started, here is a simplified guide to the differences between moneyline and spread betting.
How to Place a Bet With Moneyline
If you are new to betting, it’s a good idea to start out small. If you are looking to make some short-term wagers, then you can use the moneyline, usually found at the top of a betting slip or on the homepage of a bookmaker. To place a moneyline bet, you will need to specify the amount of money you are willing to risk, along with the price of the stock you wish to bet on. You will also need to set the type of bet you want to make (i.e. whether you want to bet on a loss or gain) as well as whether you want to risk (a.k.a. stake) or protect (a.k.a. hedge) your investment. Once you have set the stakes, you can click the button to add the bet to your portfolio. You can also review your latest bets at any time by clicking on the Bets tab located at the top of the page.
How to Place a Bet With Spread
Most people are more familiar with spread betting, which is essentially a long shot wager on a sporting event or a horse race. To place a spread bet, you will need to specify the amount of money you are willing to risk along with the price of the stock you wish to bet on. In addition to the price of the stock, you will also need to set a limit (or maximum loss) on how much the price of the stock can move in either direction. You will then need to decide how much you want to risk (a.k.a. stake) on the bet. Once you have set the stakes and limits, you can click the button to add the bet to your portfolio. You can also review your spread bets at any time by clicking on the Bets tab at the top of the page.
Key Differences Between Moneyline and Spread Betting
While there is some overlap between making moneyline and spread bets, the two are very different in how they work. If you are new to betting, here is a short list of the key differences between moneyline and spread betting: