Not sure what SP means in betting? Don’t worry, that’s quite normal…
In this article, not only are we going to explain what SP means in terms of betting but show you how it’s calculated and where you may want to consider it’s use!
And so we begin……
Definition of SP Betting?
SP means Starting Price. The final price that is offered to the betting market at the point a betting market goes in-play.
Regardless of sport, the meaning is the same. Football, tennis, horse racing, darts etc…
You will see the term referred to in horse racing more than anything, but it’s a broad betting term. Depending on where you place your bets, it may be a little different – for example, Betfair SP is different to the traditional industry SP. Explained shortly in a moment.
Note: this is not to be confused with the last price offered before market suspension (although in many cases they are the same).
How is SP Calculated in Betting?
This may appear a little confusting at first, so it’s important to know how it actually works.
When calculating the starting price, horse racing officials at the race track take a look at the pricing data from the track. The exact method to calculate the starting price differs in each country. But typically, it is decided by an appointed panel based on the movement of the prices on the racetrack.
This is then communicated to the bookmakers who use it for reasons which we will cover next.
Why Would You Use the SP?
Let us say I am placing a bet on a horse race, I would have the option to place the bet at the current price the bookmaker is offering, or I can take the starting price ‘SP’. If I take the starting price this means I do not know if the starting price is going to be higher odds or lower odds than the bookmaker was offering. This is the chance you take with the SP.
Example:
The bookmaker is offering odds of 10.0. The bookmaker asks if you want to take the current odds of 10.0 or if you want to take SP. If you back the odds of 10.0 at £10 then you have a potential profit of £100. If you take the SP and when the race starts the odds have increased to 15.0 then you would of potentially made £150, this being £50 more potential profit than what the bookmakers odd would have given you.
Point to note here: The SP can be higher, lower or even stay the same as the bookmaker’s odds. It’s a bit of a gamble.
BSP at Betfair
The question ‘what does SP stand for in betting?’ is slightly different if you use the Betfair exchange. Instead of an independently determined SP, Betfair offers their own version, the BSP.
BSP stands for ‘Betfair Starting Price’, and it is calculated based on bets placed by both backers and layers in the market. They say that it gives a much fairer starting price to the traditional method.
In fact, Betfair claims that the SP is usually better than the official SP offered at many sportsbooks. Historical data does appear to confirm this.
Best Odds Guaranteed (BOG)
These days, you don’t have to even worry about whether you should bet on the SP with many bookmakers.
This is because some of them offer what is known as ‘best odds guaranteed’. Best odds guaranteed is where the bookmaker offer you the SP regardless if it is better than the early price you bet at.
For instance, if your horse was 10.0 and the SP was 9.0, the bookmaker will pay you at odds of 10.0.
Should the SP be 12.0, however, the bookmaker will pay you out at that price. So it’s really a win/win situation (so long as your horse actually wins, that is).
Can You Make Money Betting at SP?
It depends on if your horse finishes in the right position! Over the short-term, gambling is all about luck.
There is however, matched betting. Using bookmakers’ free bets and offers, you can maximise your chances of making a profit through betting. Matched betting eliminates the risks associated with gambling and puts the odds in your favour.
Interested? Why not sign up with Profit Rush and try it out for yourself! It won’t cost you a penny.
