A spread betting company will set a price on an event, e.g. how many runs the England cricket team will make in an innings? If you think a quote offered is too low you would 'Buy' at the higher price but 'Sell' at the lower price if you think it was too high.

e.g. Cricket spread bet: England vs. Australia

England first innings runs - price quoted: 250 - 265 runs

If you think England will score more than 265 runs today then you would 'Buy'. If you think England will get less than 250 then you would 'Sell'.

STAKE

After you decide whether to Buy or Sell you must now decide the size of your bet. In spread betting you bet money per unit. In the example above, the unit is runs.

England first innings runs - price quoted: 250 - 265 runs

If you think England are in great form and will score more than 265 runs , you could try the following:

BET BUY of England runs @ 265 for £1 per unit (in this case runs)

Result (a) - England bat well and make 300 runs

England made 35 units above the level at which you made your Buy (265)

YOU WIN (300 - 265) x £1 = £35