Excerpt from: Understanding Spread Betting
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| April 05, 2007 | | Spread betting and performance | In some cases, spreads cannot easily be determined for subjects of spread betting. In cases of share prices, currency movements and other financial instruments, the numbers are already there. But what if you wanted to place spread bets on who DaimlerChrysler would sell Chrysler to?
This is where the performance spreads come in. The indexation company would create a point system reflecting the "odds" of suitable partners, and include points for the field. In this way, you would have a numerical basis to place spread bets on performance spreads.
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