IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v23y2022i7p907-949.html
   My bibliography  Save this article

Efficient Spread Betting Markets: A Literature Review

Author

Listed:
  • Jonas Vandenbruaene
  • Marc De Ceuster
  • Jan Annaert

Abstract

Are simple trading strategies profitable? It is a question that has been on the minds of academics and practitioners for decades. In this paper, we review the longstanding literature on trading strategies in spread betting (also known as handicap betting), a popular sports betting microstructure. We review over 600 strategy implementations and find that market efficiency and systematic misperceptions are not mutually exclusive per se. Predictable glitches occur, but they are too small to be profitably exploited which is consistent with efficient markets. Furthermore, while controlling for data mining issues is becoming mainstream in finance, it has not yet made its way into this literature. We provide evidence that the hurdle rate of | z | > 3 which has been put forward in the broader finance literature should also be used in betting market research.

Suggested Citation

  • Jonas Vandenbruaene & Marc De Ceuster & Jan Annaert, 2022. "Efficient Spread Betting Markets: A Literature Review," Journal of Sports Economics, , vol. 23(7), pages 907-949, October.
    • Handle: RePEc:sae:jospec:v:23:y:2022:i:7:p:907-949
    DOI: 10.1177/15270025211071042
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/15270025211071042
    Download Restriction: no
    File URL: https://libkey.io/10.1177/15270025211071042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:23:y:2022:i:7:p:907-949. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.