What are Derivative NFL Bets ?


Over the last couple of years you have read about or heard of financial terms such as derivatives, hedge funds, insider trading and other Wall Street phrases. Some have a derogatory reputation based on those who abuse them.

Perhaps the most clouded and unregulated of these instruments of deception are the hedge fund managers who deal in derivative trading and creative financing. They can derive or create a financial instrument based on two or more investments coming together to bounce off one another for greater profits — thus one derived from another. The same strategy or derivative trading is used in NFL sports betting.

Derivatives in sports

NFL sports bettors know these derivative sports bets as parlays, teasers, if bets, reverses and some proposition bets along with cross over sports wagers – a parlay based on sporting events from different sports occurrences.

A parlay is based on two or more teams you select to win or using the over and under totals. The payout is derived from team A winning the first game of your derivative bet and then team B winning the second game of your wager — all against the spread (ATS). The more teams or totals used in the wager the larger the payout but the harder to win. To win a parlay you have to win each bet.

A reverse bet is similar to a parlay but the payout is usually double if both teams connect in your wager. The very popular teaser wager allows you to add or subtract points with your teams involved in your selection. A 6-point teaser is popular if your team is favored by 6 or 7 points. You get to buy them down to even or minus 1. But you have to pick another team with the 6-points to win also. You can add on the 6-points to an underdog. The juice will be higher at minus 115 or 120 with even money payout.  An IF bet states that IF team A wins, your IF wager automatically goes to your next selection. One is derived from the other.

How to win sports betting parlays

Of course, many professional bettors consider these derivative style of bets or sometimes called exotic bets as risky and a “suckers bet”. It depends on your risk-reward tolerance for larger profits against higher odds of probability. Hitting a 3 team parlay at 6 to 1 odds is a little more exciting than getting even money for your one timer. But it should not become a regular part of your betting pattern. When you hit 2 out of 3 winners on a parlay bet you lose. You hit 66% but lost money. Do not get caught up in “wishful thinking” looking for your large payout.

Betting parlay strategies

These derivative style of bets are a novelty betting tool that do not require large bet amounts. You will see most casual bettors with a slew of parlay cards randomly picking five or more games at five dollars a shot. They might get lucky once but why waste money, even five dollars adds up over a season. Sports betting to them is a form of entertainment and that is just fine. The sports books love that action from parlays knowing a large win percentage is in their pockets.

Sports betting has become more innovative over the years with these derivative style of wagers especially with the popularity of online Spread Betting used extensively in Europe and Asia — mostly the UK where it is legal. The NFL betting props on the Super Bowl has grown over 250 options on one game. These prop bets provide up to a 40% profit for the books on the handle. Not bad for one game with over 100 million bet just in Nevada and billions worldwide.