Spread School
Why are there two prices quoted in spread betting?
In this section of Spread School, we discuss what the BUY and SELL spreads mean and why they are always different in the markets.
The fundamental difference between traditional betting methods and spread betting is that the bettor does not own the underlying asset they are placing the bet on. The bettor is simply speculating whether the market price will rise or fall based on the quoted price.
You will see that all SportsSpread markets show two prices – a BUY price and a SELL price. The difference between the two prices is called the “spread”.
If you believe that the market was going to settle lower than the spread, you would opt to sell, this would be calculated at the SELL price. However, if you believe that the outcome of the market will be higher than the quoted spread, you would BUY the buy price.
At SportsSpread, we don’t charge commission on any spread bets, all of our charges are incorporated in the spread.
One thing to understand in the world of sports spread betting is that you’re either betting in favour of or against the market. If you believe the outcome will be higher than what is being quoted in the market, you would opt to BUY the spread. You would then SELL the spread if you believed the spread would underperform and settle below the quoted price.
Similar to trading in the stock market, two prices are quoted. One price is the BUY price (the price you buy in at) the other price is the SELL price (the price you sell at). The difference between these two prices is known as the ‘spread’.
