Let’s work through the process of a spread betting trade. Every market trades on a bid/offer basis – the offer being the price you can buy at and the bid being the price at which you can sell. Let’s take Vodafone stock for instance – the quote could be £1.42/£1.43. The penny difference between these two prices could be referred to as the spread. With spread betting you bet in pounds per point movement. So if you wish to bet £100 per point on Vodafone at £1.43 this would be the equivalent of buying 10,000 shares. However, the spread betting provider will charge an extra spread, normally amounting to 0.1% on the price of the underlying. Bets are typically as low as £1 per point minimum.

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The following is a list of tips when betting on spread. Before we get to the list a short explanation about spread betting. Spread betting is available in sports betting and in financial spread betting. Both share the same bet type and the only difference is the subject of the bet (whether it’s sports or financial bet).

The bet itself is composed of odds given by either the sports book maker or the financial spread betting company. The gambler placing the bet has to choose whether the final score or the value at the end of the trading will be above the margins as provided or below them.

That’s the essence of spread betting, now its the time to gets to the real action tips when you trade and betting on spread:

1.    Stop loss, this feature is good for financial spread betting where leverage is used to make a lot of money in the bet. The wheel can turn and you can actually lose a lot of money so make sure to ALWAYS use a stop loss on your bet and this will prevent you from losing a lot of money.

2.    When betting on spread make sure you know about what you are betting, Sometimes the odds of a bet can seem too good to be true, this is what the sports book maker and the financial spread betting companies would want you to see. Make sure not to get drawn into placing bets on unknown games or financial markets you know nothing about.

3.    Spread your risks, When betting on spreads don’t put all the eggs in one basket. You can place several bets on several bets and try to win as many. The ones which will make you money will cover for the ones you lost.

On a final note, betting on spread is risky. Make sure you are limiting yourself with the amount you place as a bet. This goes to any type of gambling.Also make sure the provider you place your bets at is reputable and that there is no way you will lose your money even though you won the bet.