Spread Betting is not a new phenomenon. It is the part and parcel of American Sports betting for at least a century. The spread betting company chooses a topic to be bet on. Be it football, cricket, a horserace etc., and each event is weighed by them. They also try to judge the outcome of the event as well as other things that might happen during the event.
After studying the company decides to take a position in the bet and leaves the other sides to the oppositions. This gives them some leeway, leeway is nothing but their position called the spread. It is the middle of the ground, however it need not necessarily be the middle of the ground. For instance imaging a stock market one broker might try to predict that the price of a stock might go up in another one hour while another might say that the prices are going to come down.
But what if the price of the stock remains unchanged; the brokers Best betting brokers had a bet between themselves. This idea was developed and expanded to what is called as spread betting. One can bet on something that goes well while few can bet on something that is doing badly. The choice is offered to the bettor. The list of bets especially in the sports is growing.
The purpose of spread betting is to create an active market for both sides of the binary wager. The outcome of an event may appear to be biased towards one side or the other. A strong team might be made to match up against the weaker team and every team might have an underdog. The point spread can be moved to either side to create equal number of participants. The bookmakers charge commissions and acts as a counterpart to each participant.