Beginners Spread Betting

Opening a Spread Betting Account

Unlike a fixed odds bookies, opening a spread betting account is slightly more complex.    Spread betting accounts sometimes involve extending you some form of credit, and also they are regulated (for our protection) so there is a need for a formal application process sometimes involving the need to produce documentation, and you are not guaranteed to be accepted.   Generally you can be up an running in a few days and in some cases with a deposit account it can be instant.

Best for Beginners

Traditionally spread betting was for larger stakes and this is still true for many of the spread betting companies like Sporting Index where you probably need a few hundred pounds to open an account.  However for smaller stakes spread betting, ideal for beginners, BetHiLo allows stakes as low as 1p and requires an initial deposit of just £10.  It also only takes about 5 minutes.  What's more there is always some sort of cash incentive for opening an account so you're immediately off to a good start.

Limited Risk

For some people having a potentially unlimited downside is too scary.  For this reason there are certain limited risk accounts that you can get which essentially automatically close your bet when you reach a limit.  This is not necessarily always a good thing as discussed on our spread betting risks page.  However as a rule we recommend that most people start with a limited risk account (Shield account at Sporting Index).

Betting On-line

Spread betting is more volatile than fixed odds betting and the spread quotes are fluctuating all the time, rather like buying shares on the stock market. 

For this reason the process works as follows:

you see a quoted spread on the site - this is an indication of the quote you will get

you click to make the bet stating your unit stake

you are connected to the dealer who gives you a live spread quote (not necessarily the same quote)

you are given a few seconds (e.g. 20) to decide whether you want to bet, and whether you are buying or selling

you either click to place the trade or click cancel, or if the time expires the spread bet lapses anyway & you need to go through the process again if you are still interested.

Betting by Phone

Even if you have an internet account you can still place your bets by phone.  You need to realise that there is a formal way in which you should describe your bet and you are expected to decide quickly on a bet. 

Don't let this pressure you however, its better to be told that you are too slow and the quote has expired than to make a bet under pressure.

When you are starting out its worth noting down exactly what you are going to say and considering what spread quotes you would and wouldn't accept.

Typically when you phone up the process works like this

Hello, Sporting Index

you identify yourself

Its John Smith, account number SM44782

you tell them which market you are interested in (e.g. total  goals for Liverpool v Leeds)

I'd like Total Goals for Liverpool v Leeds please

- you don't tell them if you want to buy or sell (this avoids any allegations that they give you a biased spread quote in the knowledge of which way you are going to bet)

they gift you a quote

Liverpool Leeds total goals is 2.6 to 2.9

you say whether you want to buy or sell and at what price per unit

I'll buy at 2.9 for 50 pounds per goal

they confirm the bet back to you.

That's buying goals in Liverpool v Leeds at 2.9 for 50

Be Careful

It goes without saying that you obviously need to be very clear on two things:

what they consider to be a betting unit

how the value of the spread is calculated

Both of these can vary by spread betting firm.

Below are a couple of examples to illustrate how things can be confusing if you're not careful.

Bookings

The football bet "bookings" is an index bet that increases by 10 points for every yellow card and 25 for every red card.  If a player is booked and then receives a second yellow card, which means he's sent off with a red card, how many points is that?

10 points for first booking is easy

How many points does the second booking create?

10 - because it was just a second booking

15 - because the total for this player should be 25 for a sending off

25 - because there was a red card

35 - because a further yellow (10) and red card (25) were shown

Goals

Before William Hill Index was bought out by IG Index they once made a change in their betting policy for total goals (and a few other markets).  Essentially, al stakes on total goals markets were to be quote in pounds per 1/10th of a goal rather than pounds per goal.

This is one reason you should try to avoid saying "I'd like to buy goals at 2.9 for 50 pounds" as this leaves it open to confusion as to what the unit is that you are betting on.  If you say "50 pounds per goal? then at least its clear.  Sounds small and trivial but its your money!

Next:  Spread Betting Advantages