Things You Should Know About Spread Betting

Spread BettingEarlier, financial spread betting was not that popular. Not many people used to involve in it. It was a measure to earn some extra money for few people. Now, before we get in to detail, let’s understand what financial spread betting is all about? There are many types of wagering and spread betting is simply any type of wagering as a result of a particular event. Here, spread is the range of the outcomes of a particular event. In case of financial spread betting, the bet is on whether the outcome will be above or below a particular spread.

In United Kingdoms, there are many gamblers who practice spread betting as a profession or the only way to earn livelihood. Financial spread betting has also resulted in a rise of market growth in United Kingdoms. When one earns profit, the process involves risks. Similarly, in case of spread betting also, there are many risks involved. One can earn huge amount of money in taruhan bola and loose much more amount of money while involved in financial spread betting. To regularize this huge market of betting, financial services authority of United Kingdom looks after it. There is an authority control of Gambling Commission on spread betting in United Kingdom.

Spread betting was invented by Charles K. McNeil in 1940s. It was in 1980s that it became popular in United Kingdom. Since then there is no looking back for this market. The biggest advantage for traders here is that if a person earns a profit from spread betting, he or she need not worry about additional tax.

This is because profits earned from financial spread betting are free from Capital Gains Tax and also Income Tax for those who can show that they have another source of income to support themselves financially. However, if a person is only involved in financial spread betting for their expenses and have no other source of income, the government require them to pay Income Tax on the profits. This is to ensure transparent tax system.

Loosing money is one risk and this one is the major risk involved in spread betting. Other risks can be that when a person looses a lot of money he might want to better his situation by getting money from unlawful ways. People have committed crimes to pay off there debt which they build up while betting. It is always better to study market before putting your money on stake. It has been observed from past trends that people involve more in to spread betting when the market goes down. This way, these people try to lock profits for themselves.

Slot Machines – What You See Is NOT What You Get

slider-slot-machines

Slot Machines have been around since 1895 when the Liberty Bell machine was first introduced. It was a 3-reel mechanical slot with 10 symbols/stop points on each reel. You line up the symbols on the pay line and money comes pouring out. Very simple. The way it worked was you put in your coins which unlocks the break so that you can pull the lever which winds the springs that makes the reels start spinning. A braking system stops the reels and sensors determine the position of the reels and the amount of the payout if any.

With 10 symbols on each reel and 3 reels, it’s easy to calculate all of the possible combinations of outcomes…10 x 10 x 10 = 1,000 possible combinations. Adding up all of the winning possibilities from the 1000 possible combinations, the machine would pay out 750 coins, so the payback percentage on the machine was 75% which gives the machine a 25% profit.

Furthermore (this is important to note as we move into the next section), if a player hits a symbol on the pay line of the 1st reel then the same symbol on the pay line of the 2nd reel…at the time the 3rd reel is still spinning the player has a true x in 10 chance of landing the same symbol on the 3rd reel for a win (with x=the number of times that symbol appears on the 3rd reel).

As the popularity of slot machines grew, the casinos demanded machines from the manufacturer that offered larger Jackpots to their customers while maintaining an acceptable profit for the casinos. This was initially accomplished with larger reels so that more symbols could be placed on each reel, and with more reels.

5-reel-slots

There are 3 main mathematical factors for a slot machine to be commercially successful:

HIT FREQUENCY: How often will a slot machine come up with a winning combination, regardless of how big the win is. The higher the frequency, the more attractive the game is to a player. Most successful slot machines have a hit frequency in the 15%-20% range (1 in 6 spins on average).

PAYOUT PERCENTAGE: Over the long run, how much will the machine pay back to the players. This will typically fall in the 75% to 98% range for most machines in casinos today. The higher the payout percentage, the more attractive to the player. A lower the payout percentage means more profit for the casino…but only if the machine is being played.

JACKPOTS: The number of available jackpots and the size of those jackpot is the bait to lure in the players. The bigger the jackpot is, the more likely someone will want to try their luck.

The challenge for the slot machine manufacturers has always been to devise the best balance of each of these key factors. It was easy for them to adjust reel configurations to balance out the Hit Frequency and Payback Percentage, but they were up against a brick wall when it came to offering the huge jackpots. They could only fit so many reels into a machine and so many symbols on each reel. The inherent problem with mechanical slot machines was the physical limitations.

Slot machines using the Virtual Reel technology have redefined the reel configurations using a computer program on a chip inside of the slot machine. So for example using the Liberty Bell machine, you may see 3 reels with 10 physical stop positions each, but now there is a computer program inside saying “No…each reel actually has a lot more stop positions, more than you can imagine, and although it has the same symbols you see on the physical reel, I’m not going to tell you how many of them I have on each reel”. Basically, you can no longer calculate the probability based on the physical layout of the reels because that no longer matters.

Inside the guts of every modern slot machine is essentially a computer. The key elements of the computer are:

  • the Random Number Generator (RNG),
  • the program that defines the reel layouts and pay tables and,
  • the payout percentage for that machine.