What is Spread Betting in the UK?


Betting appears in a number of different forms in the United Kingdom, and among these, spread betting seems to be the one that creates the most complications.


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In reality, spread betting is not exactly the most complicated betting game in the world, but it would also be quite erroneous to state that spread betting is in the same rank of ease as political betting or sports betting.

 

Spread Betting Services in the UK

 

If you are looking to get involved into spread betting in the United Kingdom, then you may want to try out the following spread betting services that cater to British investors.

 

Understanding Spread Betting

 

In the investment industry, spread betting can be described as the speculation of winning or losing. More often than not, spread betting is expressed or quantified in terms of money.

The pay off received by any player or participant is based on the accuracy of the wager itself, rather than the simple idea of making a correct or an incorrect prediction. Generally, the amount that is bet on is a lot greater than the original amount that is placed.



One of the more intriguing facts about spread betting is that although it shares its roots with other gambling activities in the UK, it is technically not a form of gambling, at least not according to the rules of the United Kingdom.


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As a result, contrary to other gambling activities, spread betting is regulated by the financial services authority in the UK and is considered nothing short of a legitimate business activity. This gives you a basic idea of how lax the British rules are when it comes to gambling activities.

 

History of Spread Betting

 

The history of sports betting makes for quite an interesting read. The initial idea for sports betting was formulated by Charles K. McNeil. This man used to be a teacher of mathematics which explains why numbers and calculations are such an integral part of spread betting.

Later on in his career, McNeil jumped ship to the profession of a bookmaker while staying in Chicago during the 1940s. It took a while for McNeil’s idea to propagate around the world, but by the 1980s, the concept of spread betting was becoming quite popular among the people in the United Kingdom.



Despite the spike in popularity around the 1980s, spread betting did not create much of an impact during the remainder of the 20th century. However, at the turn of the new millennium, spread betting was fast becoming a revived and revamped sensation in the UK.

From 2000 onwards, the popularity and development of spread betting spiralled upwards. The growth of the popularity of this quote unquote business activity has been on a tumultuous rise in recent years, and it seems quite improbable for spread betting to lose the momentum that it has picked up over the last decade or so anytime in the not so distant future.

 

Types of Spread Betting in the UK

 

There are different kinds of financial spread betting companies in the UK which offer quite a decent variety of spread betting options. You can pick and choose the kind of spread betting that best fits your requirements or spread trading needs. The following is a list of some of the more common forms of spread betting in the UK.

 

1) Spread Betting On Shares

 

Most of the well known financial spread betting establishments in the United Kingdom will give you the lucrative opportunity of spread betting on shares.


Spread Betting on Shares

As a spread bettor in the world of the stock market, you will have the option of correctly predicting the future movement of shares and earning winnings out of your correct predictions.

 

2) Spread Betting on Forex

 

Forex markets too attract the attention of spread betting companies in the United Kingdom. Spread betting on the forex market is not too different from spread betting on shares.


Spread Betting on Forex

However, forex market spread betting is often more preferred by investors or bettors because of the high liquidity, huge trading volume and the 24 hour markets which constitute forex.

 

3) Spread Betting on Sports

 

No form of betting is ever complete without a dash of sports in it. Given how passionate the people in the United Kingdom are about sports, it would be quite impossible to not have spread betting associated with it.


Spread Betting Sports

Sports spread betting is particularly rewarding for those who are looking to bet on huge sums of money in sporting areas such as football, horse racing, rugby and cricket.

These 4 sports are considered to be the top dogs in the field of spread betting and the ones that yield most dividends. In a place where people eat, breathe and live football, it comes as little surprise that the beautiful game accounts for 60% of the bets.

 

How Spread Betting Works

 

As mentioned before, spread betting is not two dimensional, and is not simply based on predicting the winner or the loser of a match. When two teams are competing in a sporting event, there is one team that is always considered to be the favourites to win the game while the other team is labelled as the weak one.



Spread betting allows the investor or the bettor to place a bet on the favourite by speculating whether or not the stronger team or the favourites will reach or exceed a particular point in the spread.

This hypothetical point that is being talked about here can be placed at any level, and is usually placed as such to draw in the maximum number of participants on either side of the point.

A commission is charged by the bookmaker when accepting wagers from people who have placed their bets on either side of the point. The outcome of the game does not affect the bookmaker since his or her profits are derived from the commissions charged.

However, in order to earn profit, the total amount wagered needs to be balanced on both the sides.