Over the years, horse racing and wagering have formed a special bond that has seen punters head to racetracks and online venues for their bets. Horse racing has predominantly been decided through fixed bets where punters place wagers on horses to win, get placed, or show with the predetermined prize money. Wouldn’t it be interesting if there was a method where returns or losses were not predefined, making betting more enticing?
This is made possible with spread betting as a more engaging, higher risk, higher reward betting type, which changes wagers made on horse racing from simply winning or losing to any or all outcomes possible. Unlike single bet wagering, where the punter waits on the result, spread betting gives punters the opportunity to matriculate with the horse race on a more elaborate level. Here, both winnings and losses are dependent on how well a punter guessed the horse’s actual performance.
So, What Exactly Is Spread Betting in Horse Racing?
Spread betting is a method of wagering that allows the bettor to gamble with more options than winning or losing. For example, instead of predicting whether a horse will win or place in the race, a spread bet allows you to wager on how well a horse will perform in relation to a predetermined number – aka the spread.
To visualise that, let’s say you are placing a Bet on Horse Racing on how long a sprinter will take to complete a race. Instead of deciding if the runner will win or lose, you can wager on the range of time you think the person will take to finish the race.
You win more if they finish faster than you expected; however, if they run at a slower speed, you lose more than what you win – which is possible in spread betting, too. As a result, you are wagering on performance range in spread betting in horse racing.
Since payouts depend on how accurate you are, spread betting can be pretty thrilling and dangerous at the same time. The more precise your prediction is, the better the outcome – but if you are wrong, things can spiral out of control.
How It Differs from Traditional Fixed Odds Betting
Spread betting allows much greater flexibility in terms of wagering and comes with much more risk than traditional methods.
- Fixed Odds Betting: One wager on a specific result (win, place, show) with pre-defined odds. Your payment is based on those odds if your horse wins. You pay only your stake if it loses
- Spread betting: rather than placing a bet with fixed outcomes, this kind of betting focuses on the range of a horse’s performance. The correct prediction yields higher returns, but you stand to lose even more if you are too off
The Spread Itself — What Does It Mean?
The spread defines the expected performance for a horse by the bookmaker in spread betting. After, you place a bet on whether the horse will meet that expectation or fail.
- For instance, assume a bookmaker sets a line X for Horse X to finish between 2nd and 4th place
- If Horse X is likely to score better or, in your opinion, position 1 or 2, you can “buy” the spread
- If Horse X is expected to do worse, in your opinion, position five or lower, you can “sell” the spread
How Spread Betting Works in a Real Race
Instead of wager a set sum of money on one single outcome that a horse will either win or lose a race, you can use spread bets to place a wager predicting how far above or below a horse’s expected performance will be. Instead of anticipating a winning horse, you have the potential to make money based on the comparative performance of the horse against expectations.
Let’s discuss it in detail, one simple step at a time.
Buying vs. Selling a Position
In spread betting, you aren’t limited to placing a wager on a horse winning the race—you can place a bet on their performance against the spread set by the bookmaker. You have two choices:
- Buy the spread: you are “buying the spread” if you think the horse you bet on will do better than the spread set. If they exceed the spread and outperform it, you make a profit
- Sell the spread: If you expect a horse to underperform, it means you will sell the spread at lower values. A greater degree of underperformance means a more excellent value for you
A Simple Example to Walk Readers Through
Let’s break it down with a step-by-step example:
Scenario: Horse A’s Spread is Set at 2-4
The bookmaker has estimated that Horse A will finish between 2nd and 4th place. At this point, you have two options:
Buying the Spread (Expecting a Strong Finish)
- You purchase 4 for a stake of £10 a point each
- If Horse A wins and finishes 1st, you earn winnings based on how much the horse underperformed your buy price. It would be: (4−1)×10=30(4 – 1) \times 10 = 30(4−1)×10=30. You will receive a win of £30
- If Horse A fails and places 5th or worse, you are throwing money down the drain because it underperformed: (5−4)×10=10(5 – 4) \times 10 = 10(5−4)×10=10. For every place underperformed, you lose £10
Selling the Spread (Expecting a Poor Finish)
You set a sell order at 2 for £10, a point stake each.
- If Horse A finishes 7th, you will get: (7−2)×10=50(7 – 2) \times 10 = 50(7−2)×10=50. You have won £50
- If Horse A made it to 1st place, you were surprised: (2−1)×10=10(2 – 1) \times 10 = 10(2−1)×10=10. Now you’re losing £10
Key Terms You’ll See on Spread Betting Platforms
Some words and phrases will be essential to know when involving yourself in spread betting with horses:
- Stake per point – Defined as the bet placed in conjunction with the points of the spread. If your stake is £10 per point and the horse goes up five places above the bet, you either gain or lose £50
- Index – A set scoring criterion for specific spread betting scopes that award points based on the position achieved
- Buy/Sell – Buying indicates that a horse will perform above expected levels while selling indicates that a horse will perform lower than expected
- Result-based outcome – The outcome of winning or losing money from the bet depends on the horse’s performance compared to the spread
Why Some Bettors Prefer Spread Betting
When it comes to betting on horse racing, bettors often choose either traditional betting or fixed-odds betting. In the case of fixed-odds betting, punters decide to place their bets on the horse and rely on the winning or losing outcome.
However, spread betting breaks through these bases by also allowing profits to be made based on how accurate the predictions made are. In spread betting, the return is altered drastically, and the profits or losses depend on how a horse meets or does not meet expectations.
More Than Just Win or Lose
Fixed outcomes are simply what a plethora of bettors claim is the nature of horse racing since you win or lose a predetermined sum of money. Spread betting adds aliveness by rewarding users with earnings based on their expectations’ accuracy level.
Unlike simply backing a horse to win, place, or show, users have the ability to set a range they can bet on and expect a return if the horse performs as expected. Traditional fixed-odds betting can never reach the heights of adrenaline these types of bets entail.
Greater Rewards — and Risks
The prospect of substantial potential earnings is one of spread betting’s most significant benefits. It is a skillful bettor’s dream, as payouts are based on how much better (or worse) a horse performs. In fact, with a skilled spread bettor, there is a possibility of winning a lot more than a standard wager.
However, with higher returns comes a higher reward. Compared to fixed-odds betting, where you can lose only your initial stake on a bet, spread betting carries with it an unlimited potential loss if your prediction goes awry. Spread betting simply does not work for casual gamblers who make low-risk, predictable wagers.
Strategic Bettors Love It
Those who love using data and analysis to gamble and make informed wagers are attracted by spread betting. Professional bettors look at the following:
- Horse form and fitness
- Jockey performance history
- Track conditions
- Past race trends
Risks and Rewards: What You Should Know Before Betting
While spread betting has the potential to generate massive profits in horse racing, it’s also far more risky than standard fixed odds betting. Take the time to educate yourself on how the losses you incur can surpass the original bet and how you can curtail the risks appropriately.
The Risk of Losing More Than You Stake
There is no cap on losses, and if your prediction is way off, your losses can go far beyond your investment with spread betting, unlike in fixed odds gambling, where you can lose a predetermined amount.
Assume a scenario where you’re wagering on a horse, and the horse wins the race but within a lackluster margin of one length. If you had placed a buy bet with the expectation of 4 lengths, you would now lose three multiplied by the stake points. Loses can also happen when the horse loses the race, further worsening the situation.
This is the reason why spread betting is not for the faint-hearted, as it needs a comprehensive strategy and risk management approach to avoid heavy losses.
Use Stop-Loss or Controlled Strategies
Because losses can snowball quickly, many spread betting veterans employ stop-loss limit features to safeguard their absolute bankroll. A stop-loss helps you cap the maximum loss per bet so you will not lose more than an agreed amount.
Here are the main strategies to control risk:
- Choose a stop-loss level – In advance, agree on how much you are willing to lose on a bet at a minimum level
- Bet with smaller amounts – Spread betting is not about going all-in. A small stake can still lead to significant profit or very low loss
- Only bet where you understand the markets – Try using less-known options to help you make better decisions while betting
- Spread your stakes – Rather than risking all of your money on a single bet, spread it out between a few different markets to achieve a baseline level of risk
Is Spread Betting Right for You?
As much as it is enticing, Spread betting isn’t for everyone. The risks and rewards are at a different level from traditional betting; thus, it requires a different kind of discipline. Before getting started, ask yourself:
- Do I have a high tolerance for risk?
- Am I experienced in horse racing betting?
- Can I handle variable outcomes?
Final Thoughts — Spread Betting Can Be a Thrill If You Respect the Risk
Much like horse racing, spread betting entails exponentially more risk but promises exponentially more rewards, making it incredibly stimulating. Instead of losing and winning money in fixed amounts, spread betting has people who accurately predict winning money, and those who fail are punished through set monetary amounts.
While spread betting seems too daunting of a task, with the right mental frame approach, spread betting can deliver the thrill of the ride and the headrush from the excitement of watching the horses race. On top of all this, it offers unparalleled pleasure coupled with making brilliantly calculated bets. Stay wise and informed, and don’t forget to have fun.
