Spread Betting: Meaning and Definition
Spread betting, or point spread, is a type of betting that allows you to bet on the outcome of the match or game and the point margin.
Summary
Bookmakers assign a point spread to both the underdog and the favourite in the game to even the ground a bit and make the betting more fun. Spread betting is most commonly used for betting on basketball or American football.
What Is Spread Betting?
Spread betting is a form of wagering in which the bookmaker keeps the betting more interesting and competitive by equalising the playing field. The underdog is given a head start, while the clear favourite needs to win by the assigned margin for the bet on them to be a winning one.
The assigned margin is actually the spread you are betting on, and it brings extra value to your bet. Spread betting is a kind of handicap bet because of the assigned margins.
How It's Used
Here’s one example of what a spread bet looks like. Let’s say that Team A is the favourite to win a basketball match. The bookmaker will assign a margin to them of -10.5 points, for example. Team B will get a +4.5.
If you wagered on Team A and it wins by more than 10 points, you will win your bet. If Team A wins by a smaller margin or loses, your bet also loses.
If you bet on Team B, you would need them to win or lose by four or less points to win your bet.
