Performance Index Bets

This is the third key type of spread bet. With this type of bet, points are awarded to contestants according to their finishing positions.

Example

In the Formula 1 season, drivers are allocated a certain number of points depending on their final position in each of the 19 races: 10 for 1st place, 8 for 2nd, 6 for 3rd, 5 for 4th, 4 for 5th, 3 for 6th, 2 for 7th and 1 for 8th. The spread firms then quote a performance index for each driver. For example, Alonso may be quoted a figure of 121 - 124, whilst Coulthard is less fancied with an index of 23 - 24.

If you think that Coulthard might accumulate more than 24 points, then you would buy at the high figure of 24. Conversely, if you think that he may struggle to gain many points, then you would sell at 23.

In our example, Coulthard does better than expected, achieving:

• One 5th place (1 x 4) = 4
• Two 6th place (2 x 3) = 6
• Eight 7th place (8 x 2) = 16
• Five 8th place (5 x 1) = 5
• Three 9th place or lower = 0

This gives him a total of 31 points.

If you chose a stake of £10, the two bets would work out as follows:

1. Buying at 24 for £10 a point. You correctly predicted that Coulthard would exceed the 24 points target and would win 31 - 24 = 7 x £10 stake = £70.
2. Selling at 23 for £10 a point. In this case you were looking for Coulthard to gain less than 23 points, and you lose 31 - 23 = 8 x £10 stake = £80.