Sports betting has been a popular gambling activity for decades. But, while it can be profitable with the right moves, most individuals are starting to broaden their horizons to spread betting. This is because, just like gambling, the financial markets are also promising and having a blend of two exposes you to plenty of opportunities.
Spread betting on financial assets is like betting on them to earn you profits. This is a bit similar to sports betting, whereby you wager on specific games to win. However, what differentiates the two is that spread betting is conducted on financial assets using online brokerage firms. In contrast, sports betting focuses on the gaming industry via online casinos. Other similarities between sports betting and spread betting include:
1. It’s all About Taking Risks
While many sports bettors are trying their luck on spread betting, know that both activities are all about taking risks, and there is no guarantee for profits. You will have to conduct a thorough market analysis to create the best trading strategy when you spread bet. An excellent choice of the best trading platforms in the UK will also go a long way in maximising your profit potential.
2. Information is What Makes you Win or Earn Profits
Traders and bettors who are fully informed about an asset or game have an increased chance of making profits or winning in either of the activities. Therefore, for bettors looking into spread betting, be prepared to thoroughly study financial markets to have a chance of trading successfully.
3. You Become Better with Experience
Gamblers in sports betting know that rookie mistakes can cost them money. But the more you practice the activity, the more experienced you become and can identify which bets look promising. This works the same way in spread betting, whereby only experience will make you determine the best trading patterns.
4. No Tax
Sports betting and spread betting are free from stamp duty and capital gains tax in some regions that allow the activity. This is because while spread betting is part of trading, other countries consider it gambling, which also falls under the category of fun activities. This also means that only online casinos are required to pay a point of income tax.
Why Sports Bettors are Turning to the Financial markets
Given the similarities between sports betting and spread betting, it is evident that the latter is more efficient than the former. Although both are activities that could build your nest egg, financial markets strategies rely on asset research and market analysis. In contrast, sports betting always has the edge with little information, putting players at more risk when wagering their money on their favourite games.
Another reason why sports bettors are trying their luck on spread betting is that spread betting comes with the benefits of margin trading. By using leverage in your activities, you can multiply your profits should a trade work out as anticipated. But remember, losses can be massive, and you must be sure about your strategy before trading using leverage.
Summary
Undoubtedly, spread betting and sports betting are two different activities with few similarities. Since they are considered gambling in most countries like the UK and Ireland, punters get the opportunity to explore the financial markets tax-free. However, remember that spread betting requires extensive research to increase your chances of earning profits. In addition, you should know how to identify a good broker for the activity. With all this in mind, you will be benefiting from both activities hassle-free.
