What are Derivative Sports Bets – Connect To Bigger Profits

What are Derivative Sports Bets Connect To Bigger Profits

Over the last couple of years you have read about or heard of the financial terms such as derivatives, hedge funds, insider trading, call and put options and other Wall Street phrases. Some have a derogatory reputation based on the output of those who abuse them. Perhaps the most clouded and unregulated of these instruments of deception are the hedge fund managers who deal in derivative trading and creative financing. They can derive or create a financial instrument based on two or more investments coming together to bounce off one another for greater profits --- thus one derived from another. The same strategy or derivative is used in Sports Betting.

Sports bettors know these derivative sports bets as Parlays, Teasers, If Bets, Reverses and some Proposition bets along with cross over sports wagers a parlay based on sporting events from different sports occurrences.

A parlay is based on two or more teams you select to win or using the over or under totals. The payout is derived from team A winning thefirst half of your derivative bet and then team B winning the second half of your wager. The more teams or totals used in the wager the larger the payout but the harder to win. To win a parlay you have to win each bet.

A reverse bet is similar to a parlay but the payout is usually double if both teams connect in your wager. The very popular teaser wager allows you to add or subtract points with your teams involved in your selection. An IF bet states that IF team A wins, your IF wager automatically goes to your next selection. One is derived from the other.

Of course, many professional bettors consider these derivative style of bets or sometimes called exotic bets as risky and a "suckers bet". It depends on your risk-reward tolerance for larger profits against higher odds of probability. Hitting a 3 team parlay at 6 to 1 odds is a little more exciting than getting even money for your one timer.

Sports betting has become more innovative over the years with these derivativetypes of wagers especially with the popularity of online Spread Betting used extensively in Europe and Asia --- mostly inthe UK where it is legal.

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