Spread betting for beginners

Chris Shillington, chickendinner’s spread betting expert explains how it works starting with jelly beans…

Spread betting simply asks you to go higher or lower than a price the bookmaker gives you. For example, how many jelly beans are there in a Jam Jar? If the specified range is 190 to 200 and you thought there were more than 200 you would go High (this is called Buying). If you thought there where less than 190 you would go Low (this is called Selling).

How simple is that?

To bet actual cash you need to bet a certain amount per unit on how many beans there are in the jar. The units here are beans, so if you went High (a Buy) at 200 for say £1 per bean and there where 230 in the jar you would be right by 30 beans. At £1 per bean you would win £30. Conversely if there where only 180 beans in the jar you would be wrong by 20 beans thus losing £20.

Still with us?

If you thought there where less than 190 beans is the jar you would go Low (Sell). If you bet £2 a bean and there where only180 beans in the jar you would be right by 10 beans. At £2 per bean that’s a £20 win.

That was beans, but what about say …

Cricket is one of the most popular forms of spread betting and we’ll show you why.

If England are playing Australia at Lords and elect to bat first the spread betting bookmakers might say that England will get 390 to 400 runs in their 1st innings. You think they will get more than 400 runs and you made a Buy for £1 at 400. You’re right, they get 445 runs. You’re right by 45 runs as you went High at 400… At £1 per run that’s a £45 profit.

What about football?

Backing a a team to win or draw can get very monotonous and picking a first goalscorer is a lottery.

Why not ask yourself when will be the time of the first goal in a football game. If Man United where playing Arsenal the time of the First Goal in the match might be priced at 35-38 minutes. If you thought there would be an early goal then you would sell for say £1 per minute at 35. If there wasn’t a goal till the 40th minute you would be wrong by 5 minutes. At £1 per minute that’s a £5 loss.

Just remember spread betting is all about the more right you are the more you win. chickendinner’s recommended spread betting firm is extrabet.com

Needless to say, if you spread bet and loss you can loss big, so heed the warnings on the site and be careful out there!