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Wednesday, 23 February 2011

The Fundamental Difference between Soccer Betting and Buying Stocks

What is the difference between buying stocks and soccer betting? The key difference is the underlying asset. This is also the reason why soccer betting is considered as gambling. Soccer betting is similar to financial derivatives such as futures and options. Future and options are used for hedging (doesn't exist in soccer betting) and speculation. (Traders such as George Soros made tons of cash through speculation)

The point here is without underlying assets to protect your investments, you always have a chance to lose 100% of the value of your investment. So even if the odds for Barca to win is 1.05, there is still a chance that you will lose 100%. Our conclusion is there is no such thing as a blue chip or surely win in soccer betting. So your should never mimic stock or bond strategies. Instead, you should use options and futures strategies to guide your betting strategy.

This is where calculating risk and returns is fundamental for betting. We shall discuss that in detail in future posts. Below is some useful info for Arsenal vs Stoke.


If you are bullish on Arsenal, take note on where they are strong at scoring. Don't forget to consider the motivation for Arsenal to score and who is playing on the pitch. The more goalscorers on the pitch, the better the chance to score.

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