Sports Betting Guide
Sports Trade Betting
Sports Trade Betting belongs to one of the most popular strategies at the betting exchange. First of all it should be noted that the notion is used not only in bookmaking but also at the stock exchange. Stocks, currencies, raw materials trading have much in common with the sports Trading, you can find this out later in this article. If you are looking for the answers to the following question: What is Trading? What are its forms? How can I make money on it? You have come to the right place.
Introducing to trade betting
It should also be noted that we want to provide useful information about trading in our article. So we decided to present you with a sports trading scheme which consists of 5 articles, from the basic topic, to the most difficult one. We hope that our article "Successful Trading" will explain the mechanisms of betting exchange and will bring you a little closer to the success in sports betting.
What is sports trading?
Trading in betting is the purchase and sale of sports bets at the betting exchange. Nowadays there are three well-known betting exchanges: Betfair (it received Queen Elizabeth award in England for the innovative company), BetDaq, WBX. Some time ago there was Betsson bookmaker, but it has stopped providing its service at the betting exchange. To start with, we should distinguish the methods of trading. Trading in-play and trading pre-play are the most popular methods and they are most commonly used by the punters. We will describe them in more detail in the second part of the article.
What is sports trading about?
As we have mentioned Sport Trade betting has a lot to do with the trading at the stock exchanges. In both cases we are dealing with trade, the difference is that in sports trading we do not invest our money in raw materials, currencies or stocks or funds, we invest it in the betting odds. Note the difference between investing your money at Betfair, BetDaq, WBX and the stock exchange, or other institutions of this type like, for example, Forex. Sports trading is very simple in terms of logistics, we need a desk with a computer and the Internet access, as well as the software in order to trade. Unlike the stock market you do not have to pay high commissions on all investments (only a small profit commission - 5% usually), the transactions and the odds fluctuations, the odds are liquid and are changing all the time, especially in real time trading.
This solution gives us the opportunity to earn money several times during the day. Obviously it is a little easier to predict bookmaker’s trading than raw materials or stock trading, because it requires a great insight and analytical thinking, stock trading is also subject to various factors that have influence on the situation at the stock exchange. Odds trading is just finding errors of the weaker punters in order to increase profits. Simply put, the idea of a sports trading is as follows: "buy cheap, sell dear". Therefore, betting is primarily based on trends prediction, and on assessing the probability and the search for overrated odds to a lesser extent, which is the key point of sports betting.
Forms of sports trading
Everyone can make money on betting trading, but some people earn more and others earn less. This is due to the two basic methods offered by different betting exchanges: pre-play and in-play trading.
The first method is called the pre-play trading. Pre-match trading is based on the assessment of possible variations of the odds at the betting exchange after their placement i.e. an attempt to predict whether the odds will increase or decrease. Pre-play Trading is perfect for professional punters who can predict the situation at the betting exchange (the bets of the other punters). This knowledge does not come from nowhere. Pre-match trading requires regular observation of the odds, listening-in on the information about this event, the analysis of the market or the punters’ behaviour. The key to pre-play trading lies in the answer to the question: In which direction will the odds fluctuate before betting? Will they increase or decrease? Since the odds value at the betting exchange depends rather on the punters than on the oddsmaker, their value changes all the time. How do we make money on pre-play trading?
In-play Trading, in turn, means trading the odds during the match. It looks like betting online, live trading works for the punters who can control their emotions and bets. The main advantage compared to the pre-play trading is that in-play trading offers bigger profit because the difference between the odds is bigger. Unfortunately, there's no such thing as a free lunch. Trading in-play is more risky, dynamic; odds are changing very quickly, which can ultimately cause big losses. Live trading means a lot of requirements. Why? First, we have to watch the selected event on television (cable TV bills) or on the Internet (if you have a fast server) in order to respond to the situation during the match appropriately. Another important factor is regular access to the computer, and above all constant access to the Internet. By the way, Betfair betting exchange offers bets placing via telephone, but for some punters this is a real problem. And the time of reaction in this situation is the most important, that is why new software for trading is being created.
Example of trade betting
We have a football match between England and United States. There is a game within the qualification for the World Cup. The Americans must win to move to the next round. The odds set by the bookies are as follows: England - 3/5 (1.60), Draw - 5/2 (3.50), USA - 15/4 (4.75). Taking into account our "patriotic spirit", we assume that English punters will bet on the victory of our team, so the odds start to go down. We watch the changes in the odds and soon they go down to the level of 9/20 (1.45) for England. At this very moment we sell our bet. The difference we got in this situation thanks to the sale of the odds (1.60 - 1.45 = 0.15) is our profit...
What is the difference between the classic bet and the betting exchange?
First of all, before starting the sports trading you should pay attention to the fact that trading is “top-rank” compared to the classic betting. By “top-rank” we mean the fact that the trading is more complicated than the usual betting. Why?
In the bookmaking we predict the end of the event, but we should be aware that we are not playing against a specific team or luck, we are just looking for bookmaker’s mistakes. It is a kind of single combat between you and the representative of the bookmaker (analyst or oddsmaker). The sports betting on the Internet is just a competition with the person who theoretically has better knowledge than we do, we bet on the result, the event which may not happen. Our situation depends on the outcome of the match. If you compare the sports betting with trading you can find some features the new punters will be interested in and which are connected with the betting exchange. This feature is the start-up capital.
In sports betting, bigger capital brings the higher chances of getting huge profits . Bankroll at the betting exchange is not that important. And the risk is lower, especially when we are just learning the mechanisms of the betting exchange. Our capital has to be huge so that we could get more profit. The result may play a key role in trading, but it does not have to (if we earn profit from the sale of our bet). We are interested in the odds and their growth and fall, we are not interested in the final result of the match. This is the key difference between the punters and the traders, because the former ones bet, while the latter ones predict. The punter bet on the matches and they do not care about the difference in odds. The traders estimate the profitability of the odds purchase, predict what may happen in the future, what will the punters bet on. The traders must have some knowledge about the selected games as well as predict the behaviour of the punters who are the main source of their income. Their mutual goal is to earn money.