Spread Betting


Spread Betting
A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), and investors bet whether the price of the underlying stock will be lower than the bid or higher than the offer. The investor does not own the underlying stock in spread betting, they simply speculate on the price movement of the stock.

For example, assume that a spread-betting company quotes a bid of $200 and an offer of $203 for ABC stock and you believe that the price for ABC will be lower than $200. Since you believe that the price of the stock would be go below $200, you could "bet" $2 for every dollar that ABC falls below $200. Therefore, if the stock price after a week came to $190 you would receive $20, but if the price was $215 you would end up losing $30.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Spread betting — is any of various types of wagering on the outcome of an event, where the pay off is based on the accuracy of the wager, rather than a simple win or lose outcome, which is known as money line betting. A spread is a range of outcomes, and the bet… …   Wikipedia

  • spread betting — spread .betting n [U] 1.) a type of ↑betting on sports events in which someone says what they think the final score will be 2.) a way of buying and selling ↑shares in which someone ↑bets money on whether shares in a particular company will go up… …   Dictionary of contemporary English

  • spread betting — noun A form of gambling in which people stake money on whether the numerical outcome of an event will be higher or lower than a stated amount • • • Main Entry: ↑spread …   Useful english dictionary

  • Spread Betting —    A form of betting that depends on the establishment of a spread, or a buying and selling price, for a particular market or instrument at a certain time. For example, a bookmaker may offer a spread for next week of 120 to 130 on a market index… …   Financial and business terms

  • Spread Betting — Spreadbetting ist ein Wetten auf und Handeln mit Finanztiteln. Inhaltsverzeichnis 1 Vorgang 1.1 Vorteile 2 Weblinks 3 Literatur Vorgang …   Deutsch Wikipedia

  • spread betting — N UNCOUNT Spread betting is a form of gambling that involves predicting a range of possible scores or results rather than one particular score or result …   English dictionary

  • spread betting — /ˈsprɛd bɛtɪŋ/ (say spred beting) noun betting on sporting results, movements in the stock exchange, etc., in which the bookmaker predicts an estimated outcome as a spread, and the better predicts a result higher or lower than the spread …   Australian English dictionary

  • spread betting — noun a form of betting in which the bettor wins or loses money according to the margin by which the value of a particular outcome varies from the spread of expected values quoted by the bookmaker …   English new terms dictionary

  • spread betting — UK / US noun [uncountable] 1) a type of betting on a sports event in which you win money if you guess the correct result within a particular range of possible results 2) economics a type of betting on the stock market in which you win shares if… …   English dictionary

  • Spread — may refer to: *Statistical dispersion *Spread (food), an edible paste put on other foods *the score difference being wagered on in spread betting *the measure of line inclination in rational trigonometry *Temperature Dewpoint spread, dew point… …   Wikipedia


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