Spread Betting Examples

A simple spread bet

The mathematical analysis of spreads and spread betting is a large and growing subject. For example, sports that have simple 1-point scoring systems (e.g., baseball, hockey, and soccer) may be analysed using Poisson and Skellam statistics. Spread Betting Examples This section is dedicate to showing you a variety of spread betting examples in all kinds of Markets from Shares to Forex to Bonds. The examples might look repetitive but I guess this is a simple way of learning, through example.

If the FTSE 100 Index currently stands at 5341.6, InterTrader.com may quote 5341.1 (the sell price) to 5342.1 (the buy price). This quote (which has a 1-point spread) allows you the opportunity to bet that the value of the FTSE will fall or rise. If you believe that the value of the FTSE will fall, you should sell (or make a Down Bet) at 5341.1, or if you think the FTSE will rise, you would buy (or make an Up Bet) at 5342.1.

Assuming you decide to sell, the following example is based on a bet of £5 per point movement:

The market falls and you decide you would like to realise your profit. The FTSE 100 now stands at 5218.6 and our quote is 5218.1-5219.1. You will need to buy at 5219.1 to close your original sell bet. Similarly, if you had opened your position with a buy bet, you would need to sell to close.

In this example, if you close your position by buying at 5219.1 your winnings would be calculated as follows: 5341.1 – 5219.1 = 122 x £5 = £610.

Obviously if the market begins to rise above the level at which you sold you will incur a running loss. This is calculated in the same way as your profit.

If you are new to spread betting we strongly recommend that you open an online Demo Account and refer to our online User Manual for full instructions on placing a bet.

Margin is the amount of money you must have in your account to satisfy InterTrader.com that you are able to honour your debt should your bet lose money. The amount of margin required can be calculated simply using our Product Info Tables.

To work out the minimum amount of cash you require to open a new position, multiply your stake by the Min IMR quoted in the table. In this example, the Min IMR for the Daily FTSE is 30, so if you bet £5 per point you will need a minimum of £150 in your account to open this position.

The InterTrader.com online dealing platform is easy to master. You can observe our live prices before you trade. Then, select your market and enter your stake into the appropriate field. A trading 'ticket' will pop up, showing the live sell/buy price as the market fluctuates.

If you wish to buy, click the Buy button. Once your trade is activated, an online ticket will appear containing all the details of your position (price, stake, market, action (buy/sell), ticket number and expiry details). This information will also be sent to you via email. Print it out if you wish.

When you open your position you can enter a stop-loss level, which indicates where our system will stop and close your position, based on the level of our live quote. If you do not enter a level your position will be allocated an automatic stop-loss level. You can easily amend this level once your position is open. Your bet will close if it reaches your Computer Generated Stop Level (CGSL) or stop-loss level of your choice, therefore ensuring that you do not incur excessive losses. Stop-losses are not guaranteed (unless you specified to have your trade guaranteed).

You can also choose to make your stop-loss ‘trailing’. This means that your stop level will adjust automatically when your position moves into profit, to lock in your gains. A trailing stop will shift a set number of points whenever the market moves that same number of points in your favour. If the market moves against you it will act just like a normal stop-loss order.

You will receive confirmation of any action on your account (any trade, market order, order amendment, card deposit etc) by email. Therefore, a personal email address is mandatory. Please contact us immediately if you discover a discrepancy. You can view your 'statement of account' online, at any time.

The Min IMR refers to the Minimum Initial Margin Requirement or initial deposit required to open a bet. It is a way of calculating the minimum funds required to open a new position. If the Min IMR on a market is 50 and you want to make a bet of £5 per point, you will need a minimum of £250 in your account to open a new position.

We will then generate a stop-loss that reflects 80% of the funds available on your account or 80% of the Max CGSL (see below). Alternatively, you can enter your own stop-loss level when you open your position, as long as it falls within the maximum allowable level determined by the funds on your account. Every product also has a minimum stop level that limits how close you may place any stop.

The Max CGSL (Computer Generated Stop Level) determines the maximum level at which the automatic stop-loss will be allocated on newly opened positions. If you have sufficient funds to cover the Max CGSL on deposit, the trading system will assign a stop-loss at 80% of the Max CGSL. Otherwise, the system will allocate a stop-loss calculated as 80% of the funds available in your account.

For example, if you have £2000 in your account and you buy the Daily FTSE at £10 per point, the system will automatically allocate a stop-loss 100 points below the buy price, because the Max CGSL for Daily FTSE is 125 and 80% of 125 is 100. The maximum risk on a £10 bet would therefore be £1000, even if you have £2000 on your account. You can always amend your stop-loss (move it further away or bring it closer) assuming you have sufficient funds on your account.

Please note that we hold an additional 25% of your funds to allow for slippage or a market gap. Unless you specify for your trade to be guaranteed, you could lose more than your initial deposit should a market 'gap' through your stop level due to volatile markets or movements during the hours when InterTrader.com is closed. If you require more information, please contact us.

What is the 'Net Change' figure displayed on your dealing platform?

This figure is based on our spread bet quotes and not the underlying market value. It shows the number of points that our quote for that product has moved since the close of business the previous day.

In the NFL the best team will win the vast majority of the games. Spread betting is the most popular NFL betting option because spread betting handicaps the favourite team, which puts both teams on a more even playing field. This allows wagers on favourites to cover the spread to payout much more than money lines and also allows wagers on underdogs to have an equal chance of winning. NFL spread betting is very easy to understand and this page will explain it in detail.

In NFL spread betting the oddsmakers set a number of points that one team is favoured by in the game. This is also known as the games handicap. For a wager on the favourite to payout the favoured team must win the game by more points than the spread amount. This is known as covering the spread. For a wager on the underdog to win, the team must either win the game straight up or lose be fewer points than the spread. This is known as beating the spread. For example, if a team is favoured by 7 points, then the favourite must win by more than a touchdown to cover the spread and the underdog must either win, or lose by less than a touchdown in order to beat the spread.

NFL Spread Betting Example

Oakland Raiders +10 (-110)
Denver Broncos -10 (-110)

Spread Betting Examples Vs

In this example, the Denver Broncos are 10 point favourites over the Oakland Raiders. The (-) sign beside the spread amount indicates the favourite because they are essentially having 10 points taken away from them, while the (+) sign indicates the underdog because they are basically having 10 points added to their score.

Spread Betting Explained Football

In this example a wager on the Broncos will payout if they win by more than 10 points, while a wager on the Raiders will payout if they lose by fewer than 10 points or if they pull of the big upset and win the game outright.

Other NFL Spread Betting Information

Examples Of Spread Betting

The most common odds associated with each side of a spread bet are (-110), which means that a $110 bet would win $100. That being said it is possible for the odds to vary slightly if the spread doesn’t perfectly handicap a game. Here is an example:

Green Bay Packers -3 (-120)
Minnesota Vikings +3 (+100)

In this case the oddsmakers feel that it is more likely that the Packers will cover the 3 point spread than it is that the Vikings will beat it. In this case a $120 wager on the Packers covering the spread wins $100, while a $100 wager on the Vikings beating the spread also pays out $100.

Spread Betting Examples Games

In the two examples given in this article the spreads are whole numbers. If the game finishes with the favourite winning by exactly the spread amount then the bet is pushed and the wager is refunded. It is also possible for spreads to include half points (eg. 3.5, 7.5, etc), in which case it would not be possible for the bet to push.