Spread betting is the wagering of the movements of different events or instruments. This type of investing can be separated into two parts, financial spread betting and sports spread betting. Sports spread betting is the wagering of the results of games, such as how many points in a game or which team scores the most points.
Financial spread betting focuses on the financial instruments of the stock exchanges. These financial instruments include stocks, bonds, indices, currencies, commodities, and interest rates. Since financial spread betting requires a trader to monitor the stock market prices, it is a bit more predictable than sports spread betting. Patterns in the prices of financial instruments can be recognised through the use of charts and graphs to help financial spread betting investors, whereas sports spread betting is hard to predict because teams could have bad days or players could become injured.
Financial spread betting has thousands more opportunities for investing than sports spread betting because of the many different types of financial instruments on the stock exchanges. This is not to say financial spread betting is above other types of spread betting, but it is different because it offers the most trading possibilities as well as the predictability is more accurate.