Online Spread Betting in New Zealand
The financial markets offered by some online bookmakers that welcome Kiwi punters allow for a type of betting known as spread betting. Punters bet on the movement of particular assets or markets.
Punters’ bets do not go anywhere near the markets concerned. There is no buying of shares or investing or anything of that nature. Punters can think of it as being similar to sports betting, except certain assets or markets are the players, not athletes.
How Spread Betting Works
Spread betting requires punters to bet on whether a specific market, asset, or index will rise or fall. The punter’s winnings or loss depends not only on whether or not the market or asset bet on increases or decreases, but also on by how much.
Basically, if the punter bets that the market will increase, known as going long, and the market does increase, the punter’s winnings will increase the higher the market rises. If, however, the market falls, the degree of that fall determines the punter’s loss.
If the punter bets that the market will fall, and the market does fall, the punter wins the bet. In this case, their winnings depend on the degree by which the market fell.
Online Spread Betting for NZ$
Even though punters are not buying shares or foreign exchange or other assets when spread betting, they are betting real money, which means winning bets pay out real money.
Online bookmakers that offer financial markets also provide encrypted banking services, so punters can deposit real money into their accounts before placing their bets. Punters are also able to withdraw winnings from their accounts.
Credit cards, e-wallets, prepaid cards, and direct bank transfers are some of the payment methods that punters in New Zealand can use at most online bookmakers.
Where Spread Betting Happens
Many online bookmakers offer punters spread betting on financial markets, which are often listed among or next to their sports markets. There are also firms that specialise in spread betting, and offer punters nothing but betting on financial markets.
Due to the risk of fraud, punters should do their betting at licensed online bookmakers. In many cases, licenses are issued or renewed on an annual basis, following an assessment by the licensing authority, which is usually a national or territorial gaming commission.
Licensing information is usually displayed at the bottom of the home page, as well as on the About Us and FAQ pages. Some bookmakers display their license number and its date of issue at the bottom of every webpage.
Spread Betting Points of Interest
While the number of financial markets available at New Zealand’s online bookmakers varies, punters are usually able to find a large number. Among them are indices, commodities, options, interest rates, foreign exchange, and others.
Spread betting online is fairly simple. One punters have selected their chosen market, they indicate the size of the bet they are placing, and whether they think the market will rise or fall. The bet slip is then submitted and confirmed.
Some online bookmakers offer betting on 24-hour markets.