Sportsbetting Terms Glossary - Sports Betting Terminology

Accumulator

A multi-bet where all selections must win for the bet to pay out. If one leg loses, the entire bet fails.

Across the Board

In horse racing, a bet on a horse to win, place, and show.

Action

A bet or wager placed on a sporting event.
Example:

• If you bet on the Jets to cover the +3 spread against the Dolphins, that wager is your "action." The term refers broadly to any active bet.

Agent

An intermediary who places bets on behalf of others, often for a commission.

Alternative Line

A variation of the standard point spread or total, with adjusted odds to reflect the new line.
Example:

• The standard point spread for the Eagles against the Giants is -7. You opt for an alternative line of -4.5 at reduced odds (-200), making winning easier but offering a smaller payout.

American Odds

A format displaying odds with a plus (+) or minus (-) sign to indicate underdogs and favorites.
Example:

• The Yankees are +150 underdogs against the Red Sox. A $100 bet on the Yankees at +150 pays out $250 ($150 profit + $100 stake). On the other side, the Red Sox are -200 favorites. A $200 bet on the Red Sox at -200 pays out $300 ($100 profit + $200 stake).

Appreciated (Stocks)

In the context of stocks, appreciated refers to an increase in the value or price of a stock over time. Appreciation occurs when market demand, company performance, or other positive factors cause the stock's price to rise above its original purchase price.

Example: An investor buys shares of Microsoft at $250, and the price rises to $300. The stock has appreciated by $50 per share.

Arbitrage

A betting strategy involving wagering on all possible outcomes across different sportsbooks to guarantee a profit.
Example:

• Sportsbook A offers odds of +120 for Team A.
• Sportsbook B offers odds of +125 for Team B.
• You bet $100 on Team A at Sportsbook A and $90 on Team B at Sportsbook B. Regardless of the winner, you secure a small profit due to the odds difference.

Asian Handicap

A form of betting in soccer that eliminates the possibility of a draw by giving one team a virtual handicap.
Example:

• You bet on Manchester United with a -0.5 Asian handicap against Arsenal. This means:
• If Manchester United wins, your bet wins.
• Your bet loses if the game ends in a draw or Arsenal wins.

ATS (Against the Spread)

Refers to how a team performs relative to the point spread, not just the game outcome.

Example:

• The Chiefs are -7 favorites against the Raiders.
• If the Chiefs win 28-21, they cover the spread, making them 1-0 ATS.
• If the Chiefs win 24-21 (failing to cover), they are 0-1 ATS despite winning the game outright.

Backdoor Cover

A late, unexpected event causing the game to cover the spread.

Bad Beat

A bet that loses unexpectedly, often due to a last-minute event.

Bankroll

The total amount of money set aside for betting.

The total funds a bettor has allocated for gambling activities should be managed carefully to minimize risks.
Example:

• You decide to set aside $1,000 for sports betting over the next month.
• This $1,000 is your bankroll, which you’ll use to fund all wagers.
• You plan to bet a small percentage of this on each game to avoid losing it all quickly.

Bankroll Management

Strategically managing the size and frequency of bets.

A disciplined approach to wagering helps prevent significant losses and prolongs the bettor’s ability to stay in the game.
Example:

• With a $1,000 bankroll, you decide to bet only 2% ($20) per wager.
• This strategy minimizes your risk while allowing for sustainable betting over time.
• Even after a losing streak, you’ll still have the funds to continue betting responsibly.

Bet

A bet is a wager placed on the outcome of a sporting event, where money is risked in exchange for a potential payout based on odds provided by a sportsbook.

Example: A $50 bet on the Boston Bruins at -110 means you risk $50 to win $45.45 if the Bruins win the game.

Betting Exchange

A marketplace where bettors wager against each other rather than the bookmaker.

A platform that allows users to set odds and bet against one another, eliminating the need for a traditional bookmaker.
Example:

• On a betting exchange, you bet $100 on Team A to win at +200.
• Another user accepts your wager, betting against Team A.
• If Team A wins, you collect $300, while the other user loses their bet.

Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay for a stock (the bid) and the lowest price a seller is willing to accept (the ask). It represents the transaction cost and market liquidity, with narrower spreads indicating higher liquidity and tighter trading activity.

Example: If the bid price for Tesla stock is $200.50 and the asking price is $200.55, the bid-ask spread is $0.05. A smaller spread suggests active trading and higher liquidity, while a wider spread can indicate lower demand or trading volume.

Bitcoin

A cryptocurrency used for transactions at some online sportsbooks.

Blue Sky Laws

Blue Sky Laws are state-level regulations that protect investors from fraud by requiring securities issuers to register and disclose details about their offerings. These laws ensure transparency and fairness in securities trading within each state.

Example: A company must comply with Blue Sky Laws in each state where it sells its stock, providing accurate financial information to potential investors.

Bonus

Incentives offered by sportsbooks, such as free bets or deposit matches.

Sportsbook bonuses are designed to attract and retain bettors, often providing additional funds or free wagers. 

Example:

• A licensed sportsbook offers a 100% deposit bonus of up to $250.
• You deposit $200 and receive an extra $200 bonus funds for betting.
• You now have $400 total to wager on games.

Book/Bookie/Bookmaker

An individual or organization that accepts bets. Commonly referred to as a sportsbook.

Brokers

Brokers are licensed individuals or firms that act as intermediaries between buyers and sellers in financial markets. They execute trades on behalf of clients and may provide investment advice for a fee or commission.
Example: An investor calls their broker to purchase 100 shares of Apple stock, and the broker facilitates the transaction on the investor's behalf.

Cash Out

Withdrawing winnings or the remaining balance from a sportsbook account.

Refers to removing available funds from an active sportsbook account before or after settling bets.
Example:

• You place a $50 live bet on the Lakers to win.
• As the Lakers lead in the third quarter, the sportsbook offers a $40 cash-out option, letting you secure some of your stake before the game ends.
• You decide to cash out early to lock in a smaller return rather than risk a potential loss.

Chalk

Slang for the favorite in a betting scenario.

Chalk Eater

A bettor who frequently bets on favorites.

Describes someone who consistently wagers on the favorite in games, often taking safer bets with lower potential returns.
Example:

• A chalk eater bets on the Warriors (-200), Yankees (-300), and Patriots (-400) all to win their games.
• While these bets are lower risk, the potential profits are significantly smaller than if they bet on underdogs.
• This strategy appeals to bettors looking for consistent, low-risk wins.

Chasing

The act of trying to recover losses by betting more.

A behavior where a bettor increases bet sizes or frequency in an attempt to make up for prior losses, often leading to greater risks.

Circle Game

A game with lowered betting limits, usually due to uncertainties like injuries.

This occurs when sportsbooks reduce the maximum bet allowed on a specific game due to factors like unknown player statuses or weather conditions.
Example:

• A game between the Bills and Dolphins is circled after the Bills’ starting quarterback is listed as questionable.
• The sportsbook limits bets to $500 for this game, compared to the usual $5,000, to minimize its exposure to unpredictable outcomes.
• The betting limits may return to normal once the quarterback's status is confirmed.

Closing Line

The final odds offered before a game or event begins.

Consensus

The majority opinion or most popular side of a bet.

Represents where most public bets or money is placed on a particular outcome.
Example:

• 75% of bettors back the Eagles -7 against the Giants, making the Eagles the consensus pick for the game.
• Bettors often use consensus data to gauge public sentiment and decide whether to follow or fade the majority opinion.
• Despite the consensus, bettors may target the underdog.

Contrarian

Betting against the majority or public opinion.

Correlated Parlay

A parlay bet where the outcomes are believed to be related.

Combines multiple bets with outcomes that have a logical connection, increasing the likelihood of all legs winning.
Example:

• In a college football game, you bet on Team A to cover -14 and the total score to go Over 50.
• These bets are correlated because if Team A scores enough points to cover the spread, the total will likely go Over.
• Sportsbooks often limit correlated parlays to prevent bettors from exploiting these relationships.

Cover

Winning a bet against the point spread.

This occurs when a team wins by enough points to cover the spread or loses by fewer points than the spread allows.
Example:

• The Buccaneers are -7 favorites against the Panthers.
• If the Buccaneers win 31-20, they cover the spread because they won by more than 7 points.
• Conversely, if the Buccaneers win 24-21, they fail to cover the spread and bet on the Panthers' +7 win.

Decimal Odds

A common odds format in Europe, showing total payout per unit staked.

Represents the total payout, including the stake, when multiplied by the wager amount.
Example:

• Decimal odds of 2.50 mean a $10 bet returns $25 ($15 profit + $10 stake).
• This format is straightforward for quickly calculating potential payouts.

Dime

Slang for a $1,000 bet.

A term commonly used among experienced bettors to describe the size of their wager.

Dime Line

A betting line with a 10-cent spread is common in baseball betting.

Used in pricing odds where the difference between the favorite and the underdog is minimal, typically 10 cents in juice.

Disposable Income

Disposable income is the amount of money an individual or household has left to spend or save after paying taxes. It represents the funds available for necessities, discretionary spending, and savings.

Example: After paying taxes, Sarah's monthly disposable income is $3,000, which she uses for rent, groceries, entertainment, and savings.

Dollar

Betting slang for $100.

A casual term used to describe a wager amount. A bettor saying, "I’m putting a dollar on this," means they’re betting $100.

Double Chance

A bet allowing two outcomes for a win, common in soccer.

A wager covering two potential outcomes, reducing risk but with lower odds.
Example:

• You bet on Team A to win or draw in a soccer match.
• Your bet succeeds if the final score is 1-1 or Team A wins 2-0. If Team A loses, your bet fails.

Draw

A tie in a sporting event, common in soccer and boxing.

Early Cash Out

An option to settle a bet before the event concludes.

Allows bettors to secure winnings or minimize losses by exiting their wager prematurely based on current odds.

Earn

The bookmaker's hold or profit percentage.

The portion of total wagers a sportsbook retains as profit after payouts are made.

Earnings Reports

Earnings reports are financial statements released by publicly traded companies on a quarterly or annual basis that disclose their financial performance. These reports include key metrics such as revenue, net income, earnings per share (EPS), and guidance for future performance. Earnings reports help investors and analysts evaluate a company’s health and profitability.

Example: Apple's Q3 earnings report showed revenue of $81 billion and earnings per share of $1.26, surpassing market expectations and causing its stock price to rise.

Edge

The perceived advantage a bettor has over the bookmaker.

Represents insights, knowledge, or strategies that improve a bettor's chances of success.

Emotional Betting

Emotional betting occurs when a bettor places wagers based on personal biases, attachments, or emotions rather than objective analysis and data. In the context of NCAA football (NCAAF), this often involves betting on a favorite team, a well-known program, or against a rival, ignoring the actual odds or statistical probabilities.

Characteristics of Emotional Betting

• Bias Toward Favorites: Believing your team will win despite unfavorable odds or performance metrics.
• Hating the Rival: Betting against a rival team, even if they are heavily favored to win.
• Recency Bias: Overvaluing a team’s recent win while ignoring consistent patterns over the season.
• Revenge Betting: Trying to "win back losses" by making impulsive bets after a loss.
• Ignoring Data: Dismissing stats, trends, or injuries in favor of gut feelings or loyalty.

Example of Emotional Betting in NCAAF

Scenario:

• Team Loyalty: A bettor is a lifelong fan of the Michigan Wolverines and bets on them to win outright against Ohio State, despite Ohio State being ranked higher and heavily favored.
• Data Ignored:
  • Michigan's starting quarterback is injured.
  • Ohio State has won the last four matchups against Michigan by double digits.
  • The betting line: Michigan +7.5 at -110 (underdog).
• Emotional Reasoning:
  • "Michigan is due for a win this year!"
  • "I can’t stand losing to Ohio State again."
• Outcome: Ohio State wins convincingly, and the bettor loses their wager.

How to Avoid Emotional Betting

1. Stay Objective: Use stats, trends, and analytical tools to inform decisions.
2. Set Boundaries: Avoid betting on or against your favorite team if emotions cloud judgment.
3. Bankroll Discipline: Never increase wagers impulsively due to frustration or excitement.
4. Evaluate Odds and Data: Consider injuries, historical trends, and the betting market rather than personal feelings.

European Odds

Another term for decimal odds.

Similar to decimal odds, it is widely used in Europe and other international markets.

Even Money

A bet where the potential win equals the stake.

A 1:1 payout, represented as +100 in American odds.
Example:

• You bet $50 at even money and win, receiving $100 ($50 profit + $50 stake).

Exacta

A horse racing bet predicting the first and second-place finishers.

Requires selecting the top two finishers in the exact order for a successful bet.
Example:

• You bet Horse A will win and Horse B will place. If Horse A finishes first and Horse B second, you win.

Exchanges

Exchanges are centralized marketplaces where securities, commodities, and other financial instruments are bought and sold. Exchanges ensure transparent price discovery and provide a regulated environment for trading. Examples include the New York Stock Exchange (NYSE) and Nasdaq.

Example: A company’s stock is listed on the NYSE, where investors can trade shares during the exchange's operating hours.

Exit Strategies

An exit strategy is a planned approach to selling an investment, business, or position to achieve specific financial goals or limit losses. Exit strategies are used in both investing and business contexts to maximize returns or minimize risk.

• Example (Investing): An investor plans to sell their stock in Apple if it appreciates 20% or falls 10% from the purchase price, ensuring a defined profit target or loss limit.
  Example (Business): A startup founder plans an exit strategy to sell the company to a larger corporation after five years to capitalize on its growth and move on to new ventures.

Exotic

A bet that isn't a straight bet or parlay; often a prop bet.

Includes wagers like props, teasers, or round robins, offering unique betting opportunities outside traditional markets.

Expected Value (EV)

The anticipated value of a bet over the long term.

Calculates the profitability of a wager by factoring in probabilities and payouts.

Exposure

The amount a sportsbook potentially stands to lose on a bet.

Represents a sportsbook's maximum liability for a specific event or wager.

Favorite

The team or player expected to win.

Field

An option in futures betting representing all competitors not listed individually.

Bettors can wager on any participant outside of the named favorites.

First-Half/Quarter Line

Odds for a game's first half or quarter.

A wager specifically focused on the outcome of an early event segment.

Flat

Refers to a bet with standard odds of -110.

Indicates typical juice applied by sportsbooks on point spreads or totals.

Fractional Odds

Odds are displayed as fractions, common in the UK.

Represents profit relative to stake, such as 2/1, meaning $2 profit for every $1 wagered.

Futures

Bets placed on events that will happen in the future, like championships.

Futures bet allow bettors to wager on long-term outcomes.
Example:

• A bet on the Cowboys to win the Super Bowl at +800 before the season starts.

Getting Down

Placing a bet.

A casual term used to describe the act of making a wager.

Giving the Points

Betting on the favorite to cover the spread.

Involves taking the favorite and laying the point spread set by the sportsbook.

Grand Salami

An over/under bet for the total score of all games on a given day.

Typically used in hockey or baseball to wager on the cumulative scoring across a league schedule.

Halftime Line

Odds offered at halftime, based only on the second half's outcome.

Focuses on teams' performance exclusively in the second half of the event.

Handicapper

Someone who analyzes sports events to predict outcomes.

An individual or service providing betting tips or odds analysis.

Handle

Total amount of money wagered on a game or event.

Represents the total volume of bets placed across all markets for a particular event.

Heater

A winning streak.

Refers to a bettor or team experiencing a series of consecutive wins.

Hedge

Placing bets on opposite sides to guarantee a profit or minimize loss.

Often used to lock in profits when the outcome of a wager is close.
Example:

• You bet $50 on Team A at +300 to be the expected outright winner. Before the game ends, you bet $100 on Team B to win at -200, ensuring a profit regardless of the result.

High Roller

A bettor who wagers large amounts of money.

Typically refers to someone placing high-stakes bets, often in the thousands or more.

Hold

The percentage of money the sportsbook retains on a given wager.

Calculated as the difference between total bets and payouts, representing the bookmaker's profit margin.

Hook

Half a point in betting spreads, crucial in close games.

Affects outcomes by introducing fractional point values to spreads.
Example:

• A spread of -3.5 means the favorite must win by at least 4 points to cover the spread.

In-Play Betting

Also known as live betting, placing bets during an event.

Allows bettors to wager on changing odds and scenarios as the game unfolds.

In the Money

In horse racing, a horse that finishes in the top three.

Indicates a profitable result for bettors who wagered on place or show bets.

Initial Public Offering (IPO) (Stocks)

An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time, allowing it to raise capital by listing on a stock exchange. The IPO marks the transition from a privately held entity to a publicly traded company.

Example: Tesla launched its IPO on June 29, 2010, offering 13.3 million shares at $17 per share. The public offering helped the company raise approximately $226 million to fund its operations and future growth.

Jackpot

A large prize, often in a pool betting scenario or contest.

Typically awarded for hitting the correct combination in games like lotteries or prop pools.

Jockey

In horse racing, the rider of the horse.

Responsible for guiding the horse and executing race strategies.

Joint Favorites

When two competitors share the lowest odds in an event.

This indicates that both competitors are equally favored to win.
Example:

• Both players are listed at +110 in a tennis match, making them joint favorites.

Juice

The bookmaker's commission on a bet, also known as vig or vigorish.

Represents the margin built into the odds to ensure the sportsbook profits over time.
Example:

• A spread set at -110 for both sides includes a 10% juice, meaning a $100 bet wins $90.91.

Key Number

Significant numbers in sports betting, particularly in football.

Key numbers like 3 or 7 in football represent common scoring margins due to field goals and touchdowns.

Knockout (KO)

In boxing, winning by incapacitating the opponent.

Liability

The amount a bookmaker stands to lose on an event.

Limit

The maximum bet accepted by a sportsbook.

Line Movement

Changes in betting lines due to various factors.
Example:

• The opening line for a football game is Rams -3. Heavy public betting on the Rams moves the line to -4 by game day.
• Bettors who took the Rams early get better value than those betting after the movement.

Linemaker

The individual responsible for setting betting lines or odds.

Lines

The offered odds or points spread on a game or event.

Liquidity (Sports Betting)

Liquidity refers to how easily a bet can be placed, matched, or cashed out in a betting market without significantly affecting the odds. High liquidity means a large volume of wagers, making it easier for bettors to place or adjust bets.

Example: In a major event like the Stanley Cup Final, high liquidity ensures bettors can place large bets at stable odds, whereas a smaller hockey league may have lower liquidity, causing odds to shift with fewer wagers.

Liquidity (Stocks)

Liquidity in the stock market refers to how easily and quickly an asset, such as a stock, can be bought or sold without significantly affecting its price. High liquidity indicates a high volume of buyers and sellers, resulting in tighter bid-ask spreads and smoother transactions.

Example: Apple (AAPL) shares have high liquidity due to significant trading volume, meaning investors can buy or sell large amounts quickly at stable prices. In contrast, a small-cap stock with low trading volume may have lower liquidity, leading to wider bid-ask spreads and price volatility.

Live Betting

Wagering on an event while it is in progress.
Example:

• In an NBA game, the Lakers fall behind by 10 points in the first quarter.
• Live odds adjust to offer Lakers +4.5, and a bettor places a wager based on their belief in a comeback.

Lock

A perceived easy win or near-guaranteed successful bet.

Margin

The amount a team wins or loses by.

Market Dynamics

Market dynamics refer to the forces that influence the behavior and movement of markets, driving supply, demand, and pricing changes over time. These forces are shaped by various economic, social, political, and technological factors that impact how markets operate and evolve.

Supply and Demand

The fundamental relationship between how much of a product (supply) is available and how much it is wanted (demand) determines prices and availability.
Example: If demand for electric vehicles rises sharply and supply struggles to keep up, prices of EVs and related components, like lithium batteries, will increase.

Market Sentiment

Market sentiment reflects investors' and participants' overall mood or attitude toward a particular market, asset, or economy. News, economic reports, or global events often drive it.
Example: A positive jobs report can boost investor sentiment, leading to a rise in stock prices as confidence in economic growth increases.

Competition and Market Entry

New entrants or innovations in a market can disrupt the competitive landscape, forcing existing players to adjust strategies, lower prices, or enhance their products.
Example: Streaming services like Netflix disrupted traditional cable TV markets, forcing competitors to innovate and offer digital platforms.

Matched Betting

A strategy using free bets to guarantee a profit, regardless of the outcome.
Example:

• A sportsbook offers a $50 free bet.
• You use the free bet to bet on Team A to win and then bet against Team A on another platform, guaranteeing a small profit regardless of the outcome.

Middle

Winning both sides of a bet by exploiting line movements.

Money Management

Strategic management of betting funds to minimize losses.

Money line

A straight bet on a team or player to win an event. The money line is one of the most basic bets.
Example:

• The Yankees are -150 favorites against the Red Sox.
• A $150 bet on the Yankees returns $250 ($100 profit + $150 stake) if they win.

Mutual Pool

The total amount bet into a pool in horse racing.

Nickel

Slang for a $500 bet.

No Action

A bet with no money won or lost, often due to cancellation.

Novelty Bet

Wagering on non-sporting events, like political elections or award shows.

Odds in Sports Betting

Odds represent the probability of a specific outcome in a sporting event and determine how much a bettor can win relative to their wager. They reflect both the bookmaker’s prediction of an event and the potential payout. In sports betting, odds are typically displayed in three formats: American odds, decimal odds, and fractional odds.

1. American Odds: American odds are expressed as positive (+) or negative (-) numbers. Positive Odds (+) indicate how much profit you will win on a $100 wager, while Negative Odds (-) indicate how much you need to wager to win $100 in profit.
2. Decimal Odds: Common in Europe and Canada, decimal odds represent the total payout (stake + winnings) for every $1 wagered. The lower the decimal, the higher the likelihood of the outcome.
3. Fractional Odds: Popular in the UK, fractional odds display the winnings to the stake ratio. The first is the profit, and the second is the stake.
    

How Odds Relate to Probability

Odds reflect implied probability—the likelihood of an outcome as seen by the sportsbook. Implied Probability Formula: American Odds: Convert using 100 / (odds + 100) for positive odds or odds / (odds + 100) for negative odds. Decimal Odds: 1 / Decimal Odds x 100.
Example: Odds of 2.00 (decimal) → 50% implied probability. Odds of -200 → 66.7% implied probability.

Examples in Sports Betting Context

1. Moneyline Odds: Predicting the winner of a hockey game. If the Tampa Bay Lightning are -120 against the Boston Bruins (+100), the Lightning are slight favorites.
2. Puck Line Odds: A spread bet in hockey. The Colorado Avalanche are -1.5 (+150), meaning they must win by 2 or more goals for the bet to win.
3. Over/Under Odds: Betting on the total number of goals scored. Over 5.5 goals (-110) means both teams must score 6 goals combined for the bet to win.
4. Player Props: Betting on individual performances. Connor McDavid to score a goal at +120 means a $100 bet wins $120 if he scores.
5. Futures Odds: Long-term bets. The Vegas Golden Knights at +450 to win the Stanley Cup means a $100 bet wins $450 if they become champions.

Odds-on Favorite

A heavily favored competitor with odds less than even money.

Oddsmaker

The person/sportsbook setting the betting lines or odds.

Off the Board (OTB)

A game in which bookmakers are not accepting bets.

Opening Line

The initial betting line is set for an event.

Outright Bet

A bet on a competitor to win an entire event, not just one match.

Over

A bet that the total score will be higher than the sportsbook's prediction.

Overlay

A situation where the odds are more favorable to bettors than to the house.

Over/Under

A bet on whether the combined score will be over or under a set amount.

Parlay

A single bet linking two or more wagers. They all must win for the bet to pay out.
Example:

• You bet on the Packers (-3), 49ers (-6.5), and Patriots (+2.5).
• All three teams must win their bets for the parlay to pay out.
• If one team loses, the entire wager fails.

PASPA (Professional and Amateur Sports Protection Act)

• Definition: PASPA was a U.S. federal law enacted in 1992 that prohibited sports betting nationwide, except in states that had already legalized it before the law's passage (e.g., Nevada). Its purpose was to safeguard the integrity of sports by limiting gambling on professional and amateur sports events.
• Repeal: In 2018, the U.S. Supreme Court struck down PASPA in Murphy v. NCAA, ruling that the law was unconstitutional. This decision allowed individual states to legalize and regulate sports betting, rapidly expanding the industry across the U.S.
• Impact: Since PASPA's repeal, over 38 states and Washington, D.C., have legalized sports betting, creating a multibillion-dollar industry and increasing accessibility for bettors nationwide.

Payout

The amount paid on a winning bet.

Point Spread

A handicap is used to create a more even betting field.

Example:

• Imagine the Lakers are playing the Warriors, and the point spread is Lakers -6.5 and Warriors +6.5.
• Betting on the Lakers -6.5 means they must win by 7 points or more for your point spread bet to win.
• Betting on the Warriors +6.5 means they can lose by up to 6 points or win outright for your bet to succeed.
• The point spread balances the game by focusing on the margin of victory instead of just the winner.

Prop Bet (Proposition Bet)

A wager on specific occurrences within an event, not tied to the outcome.
Example:

• A prop bet might be: "Will LeBron James score over 30 points?"
• If LeBron scores 32 points, the bet wins.

Public Money

Bets that are predominantly placed by casual bettors.

Quarter Bet

A wager on the outcome of a specific quarter in a game.

Quinella

In horse racing, a bet on two horses to finish first and second, in any order.

Rebate

A refund or cashback offer based on betting activity.

ROI (Return on Investment)

A measure of the profitability of bets.

Round Robin

A bet consisting of multiple parlays.

Rule 10b-5

Rule 10b-5 is a regulation enacted under the Securities Exchange Act of 1934 that prohibits fraud, misrepresentation, and deceit in the buying or selling of securities. It is the SEC's primary tool to combat securities fraud, including insider trading and false statements.

Key Provisions

Rule 10b-5 makes it illegal to:

1. Employ any device, scheme, or artifice to defraud.
2. Make untrue statements of material fact or omit material facts.
3. Engage in any practice that operates as fraud or deceit in connection with securities transactions.

Example

If a company executive knowingly makes false statements about the company’s financial health to boost stock prices, they could be charged under Rule 10b-5 for misleading investors.

Rule 10b-5 protects investors and ensures fairness by holding individuals and entities accountable for deceptive practices in the securities markets.

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is a U.S. government agency responsible for regulating and overseeing the securities markets, protecting investors, and ensuring fair and efficient markets. Established in 1934 under the Securities Exchange Act, the SEC was created in response to the stock market crash of 1929 to restore public confidence in financial markets.

Key Responsibilities of the SEC

1. Protecting Investors: Ensures that individuals have access to accurate and timely information to make informed investment decisions.
2. Maintaining Fair Markets: Monitors market activity to prevent fraud, manipulation, and insider trading.
3. Facilitating Capital Formation: Enables companies to raise funds for growth and development through the issuance of securities.
4. Enforcing Securities Laws: Investigates and enforces compliance with federal securities regulations.

Divisions of the SEC

The SEC has five main divisions that carry out its duties:

1. Division of Corporate Finance: Ensures public companies provide accurate and transparent financial disclosures.
2. Division of Enforcement: Investigates securities law violations, such as fraud or insider trading.
3. Division of Investment Management: Oversees investment advisors, mutual funds, and investment companies.
4. Division of Trading and Markets: Regulates securities exchanges, brokers, and dealers.
5. Division of Economic and Risk Analysis: Conducts data analysis and research to inform SEC policies.

Key Functions and Regulations

• Filing Requirements: Public companies must file reports like 10-Ks (annual), 10-Qs (quarterly), and 8-Ks (significant events).
• Rule Enforcement: Enforces regulations like Regulation Fair Disclosure (Reg FD) and rules under acts like the Securities Act of 1933 and the Securities Exchange Act of 1934.
• Investor Protection: Monitors activities to prevent fraud, Ponzi schemes, and misrepresentation.

Notable Examples

• Insider Trading: Cases like Martha Stewart's insider trading charges underscore the SEC’s role in punishing illegal trading.
• Corporate Fraud: The SEC investigated Enron and WorldCom, two of the largest accounting fraud scandals in history.
• Crypto Oversight: Recently, the SEC has focused on regulating cryptocurrencies and exchanges, ensuring compliance with securities laws.

Structure and Leadership

The SEC is comprised of five commissioners, appointed by the U.S. President and confirmed by the Senate. One commissioner serves as Chairperson.

Securities Act of 1933

The Securities Act of 1933 is a U.S. federal law that regulates the initial sale of securities (stocks, bonds, etc.) to the public, requiring companies to provide accurate and transparent financial information to protect investors. It focuses on preventing fraud and ensuring informed investment decisions.

Example: A company launching its IPO must file a registration statement and prospectus with the SEC, detailing its finances, business operations, and risks for potential investors.

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 is a landmark U.S. federal law that established regulations for the secondary securities market, where stocks, bonds, and other securities are traded after initial issuance. Enacted in response to the stock market crash of 1929, it aimed to restore investor confidence and ensure fairness, transparency, and integrity in financial markets.

Key Features of the Act

• Creation of the SEC: The Act established the Securities and Exchange Commission (SEC), a regulatory body responsible for enforcing federal securities laws, monitoring markets, and protecting investors.
• Regulation of Secondary Markets: It governs the trading of securities on exchanges (e.g., New York Stock Exchange) and over-the-counter (OTC) markets.
• Reporting Requirements: To ensure transparency, public companies must regularly disclose financial and business information through filings like 10-Ks (annual reports) and 10-Qs (quarterly reports).
• Anti-Fraud Provisions: It prohibits market manipulation, insider trading, and other fraudulent practices undermining investor trust.
• Broker-Dealer Oversight: The Act requires registering and regulating brokers, dealers, and exchanges to ensure compliance with fair trading practices.

Importance and Impact

The Securities Exchange Act of 1934 remains a cornerstone of U.S. financial regulation, ensuring accountability and promoting fairness in securities trading. It empowers the SEC to investigate violations, impose penalties, and protect investors from misconduct.

Example: The SEC uses its authority under the Act to penalize companies or individuals engaging in insider trading, such as executives trading on non-public information for personal gain.

Sharp

An experienced, professional sports bettor known for making smart bets.

Stake

The amount of money placed on a bet.

Steam

A sudden, drastic movement in a betting line due to heavy wagering on one side.

Stop-Losses (Stock Market)

A stop-loss is an order placed with a broker to automatically sell a security when it reaches a specific price, limiting an investor's potential losses. It helps protect against significant declines in the value of an investment.

Example: An investor buys Tesla stock at $470 and sets a stop-loss order at $450. If the stock price drops to $450, the order triggers an automatic sale to limit the loss to $20 per share.

Straight Bet

A single wager on a game or event instead of a parlay or teaser.

Straight Up (SU)

Betting on a team or individual to win outright, regardless of the point spread.

Superfecta

In horse racing, a bet predicts the first four finishers in exact order.

Teaser

A parlay bet where the bettor adjusts the point spreads in their favor but at reduced odds.

TT (Team Totals)

The total number of points a team scores.

Ticket

The physical or digital record of a bet.

Total

The combined score of both teams in a game is used in Over/Under bets.

Trading Practices

Trading practices refer to the methods, rules, and behaviors that govern the buying and selling of securities in financial markets. These practices ensure fairness, transparency, and transaction efficiency while preventing manipulation or fraud.

Example: Regulations against insider trading and market manipulation are trading practices designed to maintain investor trust and market integrity.

Under

Betting that the total score in a game will be below a specified number.

Underdog

The team or individual considered less likely to win.

Underlay

A bet with less favorable odds than the actual chance of winning.

Value

Find a bet with higher odds than you believe it should.

Vig/Vigorish

The commission or fee taken by the sportsbook is often factored into the odds.

Wager

Another term for a bet.

Wire-to-Wire

A term used when a team leads a game from start to finish.

X-Factor

An unpredictable or unforeseen variable that can affect the outcome of a bet or game.

Yield

The percentage of profit or loss from a series of bets.

Yankee

A type of bet involving four selections and 11 separate bets: six doubles, four trebles, and a fourfold accumulator.

Zebras

Slang for the referees or officials in a game.

Zig-Zag Theory

A betting strategy that suggests betting on a team to bounce back after a loss, particularly in a playoff series.