Despite betting exchanges being around a long time, the average-joe still doesn’t recognise the massive potential on offer.
Here’s a snappy introduction into my world as a full-time betting exchange trader. I’ll cover:
– What bet trading is
– Basic concepts of placing a trade
– Why trading is increasing in popularity
What is Exchange Trading?
Much like shares or forex, bet trading relies on buying and selling at different prices to gain a profit. The main difference being; it’s in bets, rather than physical goods or currency.
So seeing we’re not buying or selling anything, how do you make a profit? The money is in the potential returns of your chosen horse, football match or tennis game. I’ll explain a little more in a moment.
The downside of trading being; it can take a while to get used to. However, like anything in life – the bigger the barrier, the larger the reward on the other side! Some have made millions from trading Betfair since it started.
Betfair Trading Basics
Think to cash-out. Except without the horrible bookmaker margins, and with increased chance of winning. In a nut-shell, that’s how I’d describe exchange trading.
You’re basically looking to find a situation where betting price will change, be it incorrect or about to move for a specific reason. Just think to all the gambles you see in horse racing, if you understand how handicapping works you’ve probably already noticed some pricing patterns!
Profits come from backing at high prices before laying them off lower. Or, doing it the other way around. The pro’s typically use software for its speed and charting to assist them.
For clarity, lets look at an example:
Say; Mark Precott is having a bet and his horse shortens in the betting from 7.0 to 6.0.
You Back his runner at odds of 6.0 for £50
If the price continues to contract, you can profit.
Just imagine it does, into 5.0 (not unheard of) and so;
You Lay your bet back at odds of 5.0 for £60
The winnings (before the race) would look like this…
His horse wins the race – you lose the £50 back bet, but gain £60 from the lay bet. Leaving a total profit of £10.
His horse loses – you lose £240 on the lay, but win £250 on the back bet. Leaving a total profit of £10.
As the trader in this situation, the money is in assessing the price change. You can’t get it right every time, but patterns in the betting do occur. Most long-time punters will have noticed them. Especially around trainers like Prescott.
What’s the Appeal?
It’s clear to most. This type of betting appeals to those who know the situations in hand.
Trading bets is one way of gathering a consistent income, or boosting your betting float. And because it’s bets we’re looking to trade, it’s tax free. Cool eh?
Also, think about this: what’s easier?
To be right over the long term, or short term?
This is why so many like the idea of trading. You can literally make money over a time-frame of a couple of minutes, supposed to guessing who will win a race over several miles.
With thousands of races per year, the opportunities are vast. If you want to give it a go, or maybe just learn a little more you can
find out more about Caan Berry on his site here.