The Explanation of the Spread in Betting

The spread in betting is a range of numbers on the future price of the market called a bid and offer price. Spread means the difference between the bid and offer price. The spread in betting is established by spread betting firms and not the stock exchange.

Spread betting firms establish spreads based on a number of factors. One factor is the supply of the shares available for trading. More supply means lower prices and vice versa. Demand also plays a factor in the spread in betting. A higher demand can increase the price of the spread and the opposite can happen with less demand. The final factor of a spread in betting is the market activity of total trading of the stock.

The spread in betting has two prices, one is higher and one is lower. The lower price is the bid price or the price a trader may sell. This means the trader is looking for the market price to decrease past the bid price. The offer price is the higher number and where the trader may place a buy bet. This signifies the trader speculates the price will increase.

The spread in betting isn’t complicated and one can look at specific spread betting examples to further understand.

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