Spread Betting Examples

• A couple of financial spread bet examples will help you clearly understand just how spread betting works. Although there are different types of financial spread bets – daily funded, rolling daily bets and futures – a trader is entering them with a single, clear objective: to make a profit.
• Spread betting brokerages give you a quote. The quote contains a bid price and an offer price which is a bit higher. Let’s see how it works on this example. Your brokerage quoted some stock price at $5,000 and a spread betting provider will give you a bid price of $4,990, for example, and an offer price of, let’s say $5,010.

Going Long: Spread Betting Example The concept of spread trading is a very simple one once you get used to it but some people find it challenging until it 'clicks' -: I can almost hear you say that you understand buying something and selling it again but the concept of selling something first then buying it back is a strange one. Spread betting example 1: spread betting shares In this example, ABC Company is trading at 100/102 (where 100 is the sell price and 102 is the buy price). The spread is 2. P robably the best way to see how spread betting works is by looking at some spread betting examples. Let’s first consider that you are spread betting on the FTSE 100, and expect that the value of it will increase. The spread betting provider may quote you 5543.2 — 5544.2 for the index.

What is a Point Spread or Side Bet?

A point spread is used in sports betting to even the odds between two unevenly matched teams. Each team is given a point total by the oddsmaker that can either be added or subtracted to the final score, thus factoring into if the bet was won or lost.

Example:

How To Read Betting Odds

The point spread for Super Bowl XLI was:

Colts –7

How Does Spread Betting Work

Bears +7

The (-) before the 7 indicates that the Colts were the point spread favorites. The (+) indicates that the Bears were the point spread underdogs.

If one were to bet on the Colts, the Colts would have to win by a total of 8 points for the bettor to win. If one were to bet on the Bears, the Bears would have to win outright or lose by no less than 6 points for the bettor to win. A 7 point victory by the Colts would equal a push or tie.