narrowing spread meaning in betting

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The Patriots already have been eliminated from the NFL playoff picture for the first time since bettingexpert soccer news They need wins over the Bills and in Week 17 over the suddenly-hot Jets to avoid their first losing season since going inBill Belichick's first season as coach. Kickoff is set for p. Buffalo is a 7. Patriots odds from William Hill Sportsbook, while the over-under for total points scored is

Narrowing spread meaning in betting anderlecht v olympiakos betting preview

Narrowing spread meaning in betting

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A: The term 'spread' derives from the fact that traders suffer a bid-to-offer spread the gap between the buy and sell price although there are no other transaction fees or taxes. Bid-offer spreads are familiar to investors who trade shares, but unlike conventional share dealing there are no extra costs involved such as stamp duty, broker commissions and administration charges.

But what actually is a spread? A spread is the difference between the price your spread betting provider will sell to you, and the price the provider will buy from you. With financial spread betting, all the fees and trading costs are wrapped inside the spread, so calculating your profit or loss on a trade is fairly straightforward.

As an example, the typical spread on the FTSE daily rolling contract may be quoted as to representing two-point spread. The explanation text that follows is intended to help you understand the points referenced in the podcast above. The spread denotes the difference between the price you can buy at and the price you can sell at.

You would buy go 'long' at the higher price if you think the market will rise, or sell go 'short' at the lower price if you think it will fall. As a spread bettor, you would naturally want the difference between the buy and sell prices - the 'spread' - to be as tight as possible, so the market does not have to move far before you are in profit. Spread betting providers will often be heard referring to their 'tighter spreads', which simply amounts to lower charges. If the prevailing market price for silver is If you decided to go long at The difference in points between the bid and offer spread is the cost of executing that particular trade and is where the spread betting company makes its money.

So what is the 'spread'? Courtesy of IG Index. Always remember that a buyer opens a position by taking the price on the right of the bid-offer spread - the provider's 'offer' price. A seller, betting on a fall in an asset's price, would enter a trade at the price on the left - the provider's 'bid' price. We would thus expect shares or markets with high volatility, that trade infrequently and that are not widely quoted to have larger bid-ask spreads.

In general, the more popular the asset being traded, the narrower the spread when you open a spread bet and the better your possibilities of making money. This is because the higher the volume in an asset, the more likely the provider will be able to hedge its risks and flatten out its position with relative ease, so the price charged for providing its service will be less resulting in a narrower bid-ask spread.

The workings of spread betting are very easy to understand. You simply have to go higher long or lower short than a price the bookie gives you. For instance, how many jelly beans fill in a one-litre bottle? With the point spread, the bookmakers assign a number, which will be added or subtracted to the final score of the two teams.

One team is installed as the favorite, while the other is installed as the underdog. At the end of the game, the favorite has the point spread subtracted from its score, while the underdog has the point spread added to its score. Then, following that mathematical exercise, the team with the higher score is determined to have covered the spread.

In this betting guide, we'll show you how to get started with point spread betting. No matter which team wins, you can always predict the right team to cover the spread, so let's get you started right away! The first thing you do when you're diving into this type of bet is to figure out the exact way the point spread works. Unlike the moneyline wager, where you simply predict which team wins outright, the point spread bet takes it up a notch. Both teams have roughly an equal chance to cover the spread.

But to give you a proper explanation, we will work with an example. Your betting lines might look like this for the spread:. No matter the difference in skill, this leaves both teams with a similar chance to cover the spread for their bettors. Now that you understand the basics of this wager type, we'll dive into some variations, and also explain the payouts. You might wonder, why do these betting lines work with half-points?

Certainly, you can't score half-points in major sports like football, basketball, baseball or hockey, but that's part of the reason why the half-point is there. Thus all bettors get a refund. With half-points used in the betting line, there's not a chance that the game will end up as a push. So, bookmakers are ensured to earn their vigorish.

The other reason why half-points are used is because a point spread is designed to split the betting action equally between the two teams. The most popular sports for point spread betting are football and basketball. With football betting and basketball betting, there are lots of points scored every single game. With sports like hockey or baseball, scoring is a lot less frequent. Many hockey and baseball games have moneyline odds near , which bettors tend to dislike.

Thus, bookmakers came up with run-lines and puck-lines to level out the odds, and bring them closer to Thus, gamblers are more inclined to wager on the game because the odds are nearer to The first thing you should know about spreads when you want to know how much you can earn is the way the odds work.

With moneyline wagers, parlay wagers, and teaser bets, the odds are all you look at. They can vary per team and can bring in huge rewards. With point spreads, you're not getting these extreme payouts. Instead, the odds are generally close to Even though point spread odds are close to , they can vary among sportsbooks.

And some, like BetAnySports our 1-rated sportsbook , offer reduced juice. Thus, bettors can lay on a football or basketball game rather than Also, in popular moneyline sports like hockey and baseball, there's often significant differences among sportsbooks as some oddsmakers will price their odds to realize a larger vigorish -- that is, their profit.

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Ready property sales hold steady in Dubai. In this cycle, the demand of affordable housing was higher, thereby narrowing the spread between both segments, informs the report. Dubai luxury homes set for a rebound. Saudi pricing shows crude volatility in action amid glut. Weak refining margins in Europe and Asia have dampened demand for crude in recent months, with the resulting overhang putting pressure on oil prices and narrowing the spread between Brent and WTI.

Oil prices soften further on excess supply and receding Iraq fears, says NBK. At the same time, the CBR took additional steps to address the flaws in the transmission mechanism, by narrowing the spread on 3m to 12m CBR refinancing instruments. Asian credit markets firmed slightly, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by 2 basis points.

Dubai's yield fell 11 basis points yesterday to 5. Bahrain debt cost rises as Iran-US tension escalates. What are the effects of narrowing the spread between the primary credit rate and the target rate in stabilizing the money markets? Provision of liquidity through the primary credit facility during the financial crisis: a structural analysis. By narrowing the spread , decimal trading could save investors money by lowering the ask price.

A dealer's share of the order flow cannot be increased by narrowing the spread if most orders are preferenced. And at Recall that what has transpired for the past consecutive daily trading sessions, continuously since August 13, , is itself unusual. For that entire period, the market has priced Brent higher , despite it being an inferior grade of crude relative to WTI. This time around, we need to consider what the shrinking spread actually reveals.

A part of the explanation lies in where the market is going. On the other hand, the Energy Information Administration reported a rise in crude oil inventories last Wednesday, but the market is positioning itself for additional price increases. Despite Friday's marginal decline, WTI is still up 9.

Brent, on the other hand, has been flat during that same period. I have noted on several occasions that, when the spread narrows, WTI will be rising to meet Brent, not the other way around. Put simply, the overall crude oil price trend line is now plotting up, but more so in New York than in London. The spread itself has been a popular derivative device to offset pressures on both sides of the Atlantic.

So long as Brent continued to rise more quickly relative to WTI that is, to the extent that the spread trader could bet on the price differential remaining the same or increasing , there existed a hedging tool to offset two separate developments in Europe: the expanding debt crisis and the inability to short financial institutions on the Continent.

Both resulted in a movement of trade from fixed instruments to oil futures a very fungible commodity in its own right , which served as a separate effective trading asset. The spread was a surrogate that operated in lieu of conventional shorts. It served a similar function against credit default swaps but that is another column entirely.

It bore little relationship to the reality of the commodity or who was winning the game , but much to the need to retain the spread or the point total. Now some of this resulted from supply concerns in Europe following the Arab Spring in general, and the Libyan uprising in particular virtually all of the Libyan export volume goes to European refineries. But what really produced the primary drive to "keep the spread alive" were the moves by futures contract traders.

The likelihood of debt accord in Europe, however, has ended the spread play, basically because a guaranteed depressive influence on bond prices resulting in a premium use of oil futures is also coming to a close. As a rising market requires short artists to unwind their positions and cover, so also must the debt accord oblige spread practitioners to unwind and cover theirs.

The declining spread means only one thing: New York is rising to meet London. And that means higher crude oil prices are rolling out around the world.


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providers will often be heard referring to their 'tighter. We're here to teach you all about point spread betting, no matter how betting, and find yourself on Twitter or other social media, the term 'cover the spread' Start your search by narrowing down the sports on which you like to wager, and. In practical terms, for one thing this means doing something as basic as always trading during market hours. If you choose to deal late in the evening, expect to.