Article A Beginners Guide to Spread Betting

T2W Bot

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IntroductionThis article refers to financial spread betting. This means that we are talking about stock, index, future, forex, treasury, commodity and market sector spread bets. If you are looking for information about sporting spread bets then unfortunately this article will be of no use to you.
Depending on your geographical location and the legal jurisdiction you fall under, spread betting may or may not be available to you. For example, gambling laws in the US may prohibit spread betting as it is classified in the same bracket as visiting a casino.
Spread betting has evolved in, and is dominated by, specialist UK firms. The concept was first introduced over 30 years ago when a bookmaker devised a way of betting on futures indices. The evolution has continued to the present day with greater competition for business creating an increase in financial products on offer and tighter spreads (the difference between the bid and the ask/ offer price). So why has spread betting...
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timsk

Legendary member
7,135 1,909
"The concept was first introduced over 30 years ago when a bookmaker devised a way of betting on futures indices."

I'm slightly surprised by this as I was under the (mistaken?) impression that Charles Wheeler was credited as being the father of spread betting when he lauched IG Index . Back in the 1970's, he offered customers an alternative to conventional 'turf accountants' - enabling them to bet on the outcome of a variety of sporting events besides horse racing. For example, they would offer a spread on the number of runs scored in a cricket match and you would win or lose £'s per run depending upon whether you were long or short the spread.
Tim.
 

Lightning McQueen

Moderator
4,914 779
Hi Tim

Yes I too believed the whole thing was "invented" by Wheeler, but on a quick look see on the net, this may not be the case.

The principle of spread betting was already in existence over the pond in American sports betting.

At the time of Wheeler offering spreads on gold, Corals the bookmaker was at that time offering spreads on gold and the Dow index. I have no idea who was first to offer a book on a financial product, my money is on Corals.

So it would seem that wheeler could be credited only with inventing a financial spread bet company, and thats it.

And yes Im bored, fed up and at a loose end at the moment :LOL:
 

Splitlink

Legendary member
10,850 1,232
Lightning McQueen said:
Hi Tim

Yes I too believed the whole thing was "invented" by Wheeler, but on a quick look see on the net, this may not be the case.

The principle of spread betting was already in existence over the pond in American sports betting.

At the time of Wheeler offering spreads on gold, Corals the bookmaker was at that time offering spreads on gold and the Dow index. I have no idea who was first to offer a book on a financial product, my money is on Corals.

So it would seem that wheeler could be credited only with inventing a financial spread bet company, and thats it.

And yes Im bored, fed up and at a loose end at the moment :LOL:
Just the kind of atmosphere to start mischief :cheesy:
 

Lightning McQueen

Moderator
4,914 779
Splitlink said:
Just the kind of atmosphere to start mischief :cheesy:
Well, yes the father of financial spread betting is indeed Joe Coral.

A quote from a nicely titled pdf - The Material Production of Virtuality: Innovation, Cultural Geography, and Facticity in Derivatives Markets

"Financial spread betting began with bets on the FT(Financial Times)-30 share index offered by
the bookmaker Joe Coral, and gained momentum with the establishment in 1974 by
Stuart Wheeler of IG (Investors Gold) Index."

Nothing wrong at all with copycatting, then claiming the credit :LOL:
 

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