Dealing Spread

Dealing spread is the difference between the two ends of the bet the high and low value as set by the spread betting company.

The dealing spread is usually not equal in its length towards the high and low value and that’s according to statistics and knowledge of the spread betting company who will try to temp the gamblers to bet on something based on the dealing spread which is too good to be true. Trying to catch surprises which are not in favor of the spread betting company can cause losses in certain cases and bring big profit in other cases. GBP

Once placing a bet you actually “buy” the higher end of the dealing spread or sell which is the lower end of the dealing spread and then wait to see whether it goes “long” – up or “short” – down.

The bigger the dealing spread the less chances you have to make money, but it depends on the financial product you are betting on as some financial products like the oil are trendy and tend to jump up and down which can bring profit as well as loss.

It’s important to understand the dealing spread before placing a bet. The dealing spread can turn against you when you least expected and you should always keep in mind that there’s a team of statistician who set that dealing spread and most likely that they know what they are doing.

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