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To calculate the margin a bookmaker applies to a match, you need to take into account the odds for all possible outcomes. The higher the margin, the poorer the value for a bettor; which is why margins are the best way to truly compare odds. If, however, you were placing a bet on a coin toss with someone seeking to make a profit i. If you want an easy way to calculate the margin applied to a bet, use our Margin Calculator. How to calculate the betting odds margin To calculate the margin a bookmaker applies to a match, you need to take into account the odds for all possible outcomes.

This is relevant over the longterm. Any serious bettor will make multiple bets over time where the margin will eat into their potential profit. This represents a huge difference in potential value that any bettor seeking to get the best deal should be aware of. A teaser is a bet that alters the spread in the gambler's favor by a predetermined margin — in American football the teaser margin is often six points.

For example, if the line is 3. In return for the additional points, the payout if the gambler wins is less than even money , or the gambler must wager on more than one event and both events must win. In this way it is very similar to a parlay. At some establishments, the "reverse teaser" also exists, which alters the spread against the gambler, who gets paid at more than evens if the bet wins.

Sports spread betting[ edit ] In the United Kingdom , sports spread betting became popular in the late s by offering an alternative form of sports wagering to traditional fixed odds , or fixed-risk, betting. With fixed odds betting , a gambler places a fixed-risk stake on stated fractional or decimal odds on the outcome of a sporting event that would give a known return for that outcome occurring or a known loss if that outcome doesn't occur the initial stake.

The spread on offer will refer to the betting firm's prediction on the range of a final outcome for a particular occurrence in a sports event, e. The more right the gambler is then the more they will win, but the more wrong they are then the more they can lose. The level of the gambler's profit or loss will be determined by the stake size selected for the bet, multiplied by the number of unit points above or below the gambler's bet level.

This reflects the fundamental difference between sports spread betting and fixed odds sports betting in that both the level of winnings and level of losses are not fixed and can end up being many multiples of the original stake size selected. For example, in a cricket match a sports spread betting firm may list the spread of a team's predicted runs at — If the gambler elects to buy at and the team scores runs in total, the gambler will have won 50 unit points multiplied by their initial stake.

But if the team only scores runs then the gambler will have lost 50 unit points multiplied by their initial stake. It is important to note the difference between spreads in sports wagering in the U. In the U.

In the UK betting above or below the spread does not have a known final profit or loss, with these figures determined by the number of unit points the level of the final outcome ends up being either above or below the spread, multiplied by the stake chosen by the gambler. For UK spread betting firms, any final outcome that finishes in the middle of the spread will result in profits from both sides of the book as both buyers and sellers will have ended up making unit point losses.

So in the example above, if the cricket team ended up scoring runs both buyers at and sellers at would have ended up with losses of five unit points multiplied by their stake. This is a bet on the total number of points scored by both teams. Suppose team A is playing team B and the total is set at If the final score is team A 24, team B 17, the total is 41 and bettors who took the under will win.

If the final score is team A 30, team B 31, the total is 61 and bettors who took the over will win. The total is popular because it allows gamblers to bet on their overall perception of the game e. Example: In a football match the bookmaker believes that 12 or 13 corners will occur, thus the spread is set at 12— A "sell" transaction is similar except that it is made against the bottom value of the spread.

Often "live pricing" changes the spread during the course of an event, increasing a profit or minimizing a loss. In North American sports betting many of these wagers would be classified as over-under or, more commonly today, total bets rather than spread bets. However, these are for one side or another of a total only, and do not increase the amount won or lost as the actual moves away from the bookmaker's prediction. Many Nevada sports books allow these bets in parlays , just like team point spread bets.

This makes it possible to bet, for instance, team A and the over, and be paid if both team A "covers" the point spread wins by that amount or more and the total score is higher than the book's prediction. Such parlays usually pay off at odds of with no commission charge, just as a standard two-team parlay would. Mathematics[ edit ] 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. Financial spread betting[ edit ] By far the largest part of the official market in the UK concerns financial instruments; the leading spread-betting companies make most of their revenues from financial markets, their sports operations being much less significant.

Financial spread betting in the United Kingdom closely resembles the futures and options markets, the major differences being the "charge" occurs through a wider bid—ask spread ; spread betting has a different tax regime compared with securities and futures exchanges see below ; spread betting is more flexible since it is not limited to exchange hours or definitions, can create new instruments relatively easily e.

Financial spread betting is a way to speculate on financial markets in the same way as trading a number of derivatives. In particular, the financial derivative contract for difference CFD mirrors the spread bet in many ways.

In fact, a number of financial derivative trading companies offer both financial spread bets and CFDs in parallel using the same trading platform. Unlike fixed-odds betting, the amount won or lost can be unlimited as there is no single stake to limit any loss. However, it is usually possible to negotiate limits with the bookmaker: A stop loss or stop automatically closes the bet if the spread moves against the gambler by a specified amount.

A stop win, limit or take profit closes the bet when the spread moves in a gambler's favor by a specified amount. Spread betting has moved outside the ambit of sport and financial markets that is, those dealing solely with share, bonds and derivatives , to cover a wide range of markets, such as house prices. Additionally, by avoiding the favourite-longshot bias , where the expected returns on bets placed at shorter odds exceed that of bets placed at the longer odds, and not betting with one's favorite team, but rather with the team that has been shown to be better when playing in a specific weather condition and time of day, the possibility of arriving at a positive outcome is increased.

Tax treatment[ edit ] In the UK and some other European countries the profit from spread betting is free from tax. The tax authorities of these countries designate financial spread betting as gambling and not investing, meaning it is free from capital gains tax and stamp duty , despite the fact that it is regulated as a financial product by the Financial Conduct Authority in the UK. Most traders are also not liable for income tax unless they rely solely on their profits from financial spread betting to support themselves.

The popularity of financial spread betting in the UK and some other European countries, compared to trading other speculative financial instruments such as CFDs and futures is partly due to this tax advantage. However, this also means any losses cannot be offset against future earnings for tax calculations.

Conversely, in most other countries financial spread betting income is considered taxable.

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Written By: Conor Rafter Last Updated: October 22, There are plenty of online betting markets for you to choose from when taking a punt on football matches. Some are straightforward, others are more complicated than necessary. All offer rewards for correctly predicting an outcome of some sort. For example, if one team scores three goals and the other scores once, then the winning margin stands at two 2. If the home team bags four goals and the visitors hit three goals, the winning margin is one 1.

There are two key elements to this genre of betting. First, you need to correctly guess which team will win the game draws are not available for selection. The second aspect of this market is the margin of victory. You are required to pick whether a team will win by one, two, three or more goals. When both outcomes go in your favour, your bet wins. In return, you make money. Team A by exactly 1 Goal.

The bookie also explains that bets will stand for all games that end in a stalemate. Therefore, any bets on this market where the game finishes as a draw will be counted as a loss rather than being voided. Hence, you must be diligent when making selections. Thus, this type of wager is ideal for anyone at the beginning of an online betting journey. The market is hard enough to get right that it offers good prices, yet it is simultaneously easy enough to use that even the most novice of punters can make a profit from it.

In turn, you are also betting on the loser. Both outcomes work in tandem with each other. The Blues lead in the 89th minute having come from down in the first half. The margin between the two sides is found by subtracting the number of goals scored by the losing team from those struck by the team in the lead. A three-way prediction can be very tough, and with the few odds, winning margin betting is a perfect alternative. Winning margin 1 Brighton 3. In this case, a Brighton to win by 1 margin means that Brighton must win the game with a goal difference of 1 goal.

At the end of the game, the scoreline does not matter so long as the goal difference is one. The examples of winning score lines for Brighton win by 1 margin are: , , , Likewise, if you place a Crystal Palace win by 1 margin, the away team must win the game with a final goal difference of one goal. Here are examples of winning score clines: , , , Winning margin 2 Brighton 4. The odds are higher than the win by 1 market since it is more demanding and complex.

If you placed a Brighton win by 2 goals margin, Brighton must win the game with a 2 goals advantage.

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