A point spread bet is the margin of victory in a sporting event. It is also known as the line. The wager is on how many points a team will win or lose by. It is the most popular form of betting and most common in the NBA and NFL. A matchup consists of the favourite team which is most likely to win, and an underdog team. Point spreads betting is used to level the playing field between the favourites and the underdogs. It is used by sportsbooks to equalise the chances of winning the game for each team.
How Does Point Spreading Betting Work?
For a punter to win a point spread bet, the team that they have bet on should outperform the predicted results. Betting on the favourite means that they have to win the game by more than the point spread. For example, if the Golden State Warriors (-6.5) are the favourite team in the match up with the Boston Celtics (+6.5), they need to win by at least 7 points for the punter to win his bet.
Betting on the underdog would mean that they have to win the game or lose by six points or less. Covering the spread means that a team has beaten the point spread set, and therefore won the bet. The favourite team will cover the spread by winning the game even with the handicap taken into consideration. The underdog team covers the spread by winning with the additional points.
Why do Point Spread Lines Move?
Point spread betting is used by sportsbooks to get a similar level of wagering for each side of the game. For the sportsbooks to get the results they desire, they will change the payouts. To get more people betting on one side, they will increase the payout to that side and lower the payout to the opposing team. This is mostly done with moneyline bet, where the outcome required is an outright win, and not the number of points by which they lose or win.
A seasoned punter will understand that the odds will change from the time sportsbooks first release the odds to the tip-off of the game. These movements will impact the expected winnings appeal of that bet. Looking through multiple sportsbooks will allow a bettor to scout for better odds and take advantage of them before the betting action triggers a response to change the outcome.
Point Spread Betting Techniques
The following are 4 of the best strategies to follow in point spread betting:
- Breakout Spread Betting
This strategy takes advantage of strong price movements due to volatility and it is best to make a move as early as possible. The trader identifies the expected breakthrough price and then buys or sells at that price in order to take advantage. This process involves analysing volume trading indicators to check if an index breaks its upper limit showing that the market is unexpectedly bullish.
- Reversal Spread Betting
This strategy involves analysing and identifying where trends are going to hit a top or bottom at which point the trend reverses. This happens when an index is under or overpriced, and the punter capitalises on gains made over the course of the price correction. Graphical outputs are a good tool to analyse and predict the upper or lower limit of the index, and clearly show the trader where to open a bet spread in the opposite direction.
- News-Based Spread Betting
This strategy involves predicting the price movements in the market based on relevant news releases. This strategy requires a skilful approach that quickly determines credibility of the news and if the news has been already integrated into the price. The trader needs to keep a keen eye on how the news release is affecting the market, and adopt the correct strategy for different types of news. This method of point spread betting is common with commodities such as oil.
- Trend Market Spread Betting
This technique involves the use of technical analysis to identify a trend in the price movements. Once the trader has decided on a time-frame for the analysis, he uses indicators such as the moving averages to place an open and close position. This method allows the trader to capitalise on market reactions to a trend by getting into a position ahead of the rest of the market.
Point spread betting not only provides a margin for error, but also a way to win a wager even if the team chosen loses the game. This clearly shows the reason for its popularity as a betting strategy. Thorough research and sticking to a tested strategy will ensure that profitable point spread betting with minimal losses.