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A Guide To Spread Betting With The Money Zone
An Introduction to Spread Betting, explaining what Spread Betting is and how it works. |
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Spread Betting Terminology
Spread betting can seem confusing in the array of terms used to describe various aspects of the spread bet. Here's a guide to what some of the most commonly used terms are, and what they mean:
| Buy |
| A bet that the result will be higher than the higher end of the quote. |
| Sell |
| A bet that the result will be lower than the lower end of the quote. |
| Spread |
| The difference between the quotations for buying and selling. |
| Stake |
| The amount, in £s per point - goal, stroke, run etc - nominated by the client to indicate the size of the bet. |
| Open Bet |
| A bet that has not yet been closed or settled. |
| Closing A Bet |
| Where you place a second bet, of the same size and in the opposite direction to the first, to close the open position. This establishes your profit or loss and ensures that you have no financial involvement in the remainder of an event, unless you have other bets open. |
| Stop Loss |
| A limit placed at the time of opening the bet on the maximum amount you can lose. |
| FSA |
| The Financial Services Authority, by which all spread betting firms must be regulated. |
| Volatility |
| A measure of how widely the result in a market is likely to vary. Cricket runs are very volatile, the winning score in the US Masters less so. |
<< Return to the Spread Betting Index
Full Contents
• An Introduction to Spread Betting
• What is Spread Betting?
• How Spread Betting Works
• How Spread Betting Started
• Spread Betting Terminology
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