Spread Betting

Spread Betting
   A form of betting that depends on the establishment of a spread, or a buying and selling price, for a particular market or instrument at a certain time. For example, a bookmaker may offer a spread for next week of 120 to 130 on a market index which is now standing at 125. A bullish punter would buy the spread, or accept the offer price of 130, placing an up bet that the market will rise above 130. He would gain additional winnings for every point rise above that level. A bearish punter would sell the spread, or accept the bid price of 120, placing a down bet that the market will fall below 120. He would gain extra profits for every further point fall below that level. Bets can be closed out at any time by making a matching but contrary trade at the current spread. Prices for spread bets are usually set in line with the underlying market, but the advantage to the punter is that there are no commissions or trading taxes to pay, and often no taxes on capital gains. Spread betting also allows highly speculative small investments. The bets are highly geared. Spread betting is offered on sporting events and on almost every underlying financial instrument and market. ► See also Bid, Offer, Spread.

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spread betting UK US noun [U]
FINANCE, STOCK MARKET the activity of risking money on the price changes of shares, without buying the shares themselves: »

There is no doubt that spread betting is a more expensive way to play the market than dealing through a broker.

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The financial spread betting market is booming.

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a spread betting company/firm/group

FINANCE a form of gambling in which you try to win money by saying what the result of events such as sports games will be: »

With spread betting, the more right you are, the more you can win. But if you are wrong, you can lose more than your stake.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Spread betting — is any of various types of wagering on the outcome of an event, where the pay off is based on the accuracy of the wager, rather than a simple win or lose outcome, which is known as money line betting. A spread is a range of outcomes, and the bet… …   Wikipedia

  • spread betting — spread .betting n [U] 1.) a type of ↑betting on sports events in which someone says what they think the final score will be 2.) a way of buying and selling ↑shares in which someone ↑bets money on whether shares in a particular company will go up… …   Dictionary of contemporary English

  • spread betting — noun A form of gambling in which people stake money on whether the numerical outcome of an event will be higher or lower than a stated amount • • • Main Entry: ↑spread …   Useful english dictionary

  • Spread Betting — Spreadbetting ist ein Wetten auf und Handeln mit Finanztiteln. Inhaltsverzeichnis 1 Vorgang 1.1 Vorteile 2 Weblinks 3 Literatur Vorgang …   Deutsch Wikipedia

  • Spread Betting — A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), and investors bet whether the price of the underlying stock will… …   Investment dictionary

  • spread betting — N UNCOUNT Spread betting is a form of gambling that involves predicting a range of possible scores or results rather than one particular score or result …   English dictionary

  • spread betting — /ˈsprɛd bɛtɪŋ/ (say spred beting) noun betting on sporting results, movements in the stock exchange, etc., in which the bookmaker predicts an estimated outcome as a spread, and the better predicts a result higher or lower than the spread …  

  • spread betting — noun a form of betting in which the bettor wins or loses money according to the margin by which the value of a particular outcome varies from the spread of expected values quoted by the bookmaker …   English new terms dictionary

  • spread betting — UK / US noun [uncountable] 1) a type of betting on a sports event in which you win money if you guess the correct result within a particular range of possible results 2) economics a type of betting on the stock market in which you win shares if… …   English dictionary

  • Spread — may refer to: *Statistical dispersion *Spread (food), an edible paste put on other foods *the score difference being wagered on in spread betting *the measure of line inclination in rational trigonometry *Temperature Dewpoint spread, dew point… …   Wikipedia

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