Brazil 2014. The most anticipated footballing event of the sports calendar is just around the corner. The World Cup which by God’s grace, Nigeria will be crowned champions18 years on from their Olympic football gold medal. I’m sure readers of Lekanomics (link to his blog) will not be too happy with that!
A World Cup betting report by Regulus Insights has predicted around £800 million pounds worth of stakes will be placed during the World Cup. This is most likely down to the wide range of betting options available for punters to select from as they ponder on where to put their money.
The spread betting markets is an extension is this betting craze. Punters can bet on things such as, the shirt number of a goalscorer, to which two teams will make the World Cup finals and even the total amount of yards accumulated by the number of goals scored throughout the tournament.
Let me explain how the spread betting market works.
Let’s use the total corners market as an example. Currently, this market is being quoted at 643-653. What this means is that you can decide to ‘sell’ at 643 or ‘buy’ at 653.
If Josh Capital believes there will be more than 653 corners in the tournament he will buy at 653, equally, if he thinks there will be less than 643 corners he will sell at 642. What does that mean in practice?
As you can see in the diagram above, the market can be highly leveraged and an investor’s mentality should be applied – only stake what he/she sees as as a comfortable amount to lose. Take a long term approach to the tournament – assess how the favourites (and England) perform, the leniency of the referees and other factors which could affect the final scoreline.
Good luck to everyone who has money on the tournament – let me know how well you do!