Sporting Index – Spread Betting Vs Fixed Odds Betting
Sports fans are presented with two intriguing options when they decide to place a bet on the action: fixed odds and spread betting. They are both exciting, but there are a number of key differences between them, so this article explains how they work.
Fixed Odds Betting Explained
You will know exactly how much you stand to win or lose when you place a traditional fixed odds wager. For example, you might decide to bet $100 on a horse winning the Kentucky Derby at odds of 4/1. If your bet is successful, you will earn a $400 profit, as odds of 4/1 mean that you will earn a $4 profit for every $1 you wager. If your bet is successful, you also get your stake back, so you would be returned $500. If your prediction proved to be unsuccessful, you would simply lose your $100 stake.
You might see 4/1 rendered as +400 (American odds) or 5.0 (decimal odds). If you see a plus sign in American odds, it tells you how much profit you would make from a successful $100 bet. A $100 bet at +400 would therefore net you $400 if the horse won the race. When it comes to decimal odds, it includes the profit and the return of your stake. A successful $100 bet at 5.0 would see you receive $500 ($400 winnings and your $100 stake back). Most sites will allow you to choose from American, fractional and decimal odds, depending on your preference.
Spread Betting Explained
Spread betting is a fun and exciting option due to the huge range of possibilities it opens up. It differs from fixed odds betting, because you generally do not know how much you will win or lose when you place a bet. For example, let’s say the Phoenix Suns are playing against the Oklahoma City Thunder in a big NBA game. You might find a Total Points Index of 219-223. This means the odds compilers at the spread betting site think there will be 219-223 points in the game. You then have the option to sell at 219 if you think it will be a low-scoring game, or buy at 223 if you think it will be a high-scoring clash.
If you were to buy at 223, you would hope for a really high-scoring game. If OKC won the game 120-118, the total points in the game would be 238. If you had bought at 223 for $10, you would earn a $150 profit. That is because 238 is 15 greater than the price of 223 that you bought at. Your stake ($10) is multiplied by this difference (15) to calculate your profit. However, if it finished 110-107, the total points would be 217, which is 6 below the price you bought at. That would mean you would lose $60. Your profit or loss is determined by how right or wrong you are, as you pit your wits against the odds compilers. The odds are not fixed, so you do not know how much you stand to win or lose when you place the bet.
Fixed Odds Betting Examples
The most famous bets in the world are fixed odds wagers. In horse racing you can bet on the win, the place, the show, an exacta, a trifecta and so on. The classic betting markets on sports like football and basketball are the result, the point spread (not to be confused with spread betting) and total points. You might find odds of -110 (10/11 in fractional, 1.91 in decimal) on the Philadelphia Eagles -3.5 when they face the New York Jets, and odds of -110 on the Jets +3.5. The minus symbol tells you the amount you must wager in order to win $100. A $110 bet on the Eagles -3.5 would net you a $100 profit if they won by 4 or more points, but you would lose your $110 stake if they lost the game or won by fewer than 4 points.
You might see -110 on under 34.5 points and -110 on over 34.5 points in the game. You know exactly how much you stand to win by betting on over or under. There are many more fixed odds bets to choose from. UFC fans can bet on the winner, the total rounds, the method of victory and so on. Soccer fans can bet on correct score, Asian handicap, draw no bet, correct score, first goalscorer, last goalscorer and so on. The one thing they have in common is that the odds are fixed.
Spread Betting Examples
Spread betting offers many unique and exciting wagering possibilities. You can bet on one team’s points or goals supremacy over the opposition, the winner of a game, the total points, and much more. For example, football fans can bet on touchdown minutes. This is a prediction of the total minutes of each touchdown scored in a match. If the game saw touchdowns in the 21st, 50th and 56th minutes, the result would be 127 (21 + 50 +56 = 127). You will always find a pre-match quote, and you can either sell at the lower end if you think the odds compilers have gone too low, or sell at the upper end if you think they have been too ambitious. There are many more exciting spread betting examples to choose from, which can be found in the spread betting basics.
Spread Betting vs. Fixed Odds Betting
Many people like spread betting because it offers a fun and exciting range of possibilities. It also keeps you interested in the game for longer. If you bet $100 on over 218.5 points in a basketball game, you would be excited when the 219th point was scored, as your bet would be a winner. However, your interest might then start to dwindle. However, if you had bought at 218 on a spread, you would cheer on every extra point scored, as it would increase your profit.
There are unique markets and it offers the opportunity to make a large profit from a relatively small wager. However, you can also incur a larger loss, so it is a more volatile pursuit. Spread betting is great fun when enjoyed responsibly. Some bettors prefer the security of a fixed odds wager, as they know exactly how much they stand to win or lose. Perhaps it is best to take advantage of both of these fun wagering options, using fixed odds betting on some occasions and spread betting on others.