What is Betfair Trading?

Harry is going to teach us how to do sports trading at the Betfair exchange

All about Betfair Trading in 2022.

Assimilate knowledge about:

  • Trading, its types and strategies
  • How to trade to make a profit?
  • The best trading software
  • And how to become a good trader!

Let’s get started!

Harry TheTrader 9 minutes

Understanding what makes trading on the Betfair markets successful is no easy task as the level of sophistication of the sports exchange is high, especially for those taking their first steps in this arena.

In other words, how you make money on Betfair is vastly different from how you make money on a traditional bookmaker site.

However, the Betfair community grows every year, and there’s a good reason for this.

So, let’s find out what trading strategies and types there are, what is hedging and dutching, how to become a successful trader, and what software can help us become more profitable.

Chapter 1

Trading in Sports

Trading in Sports

The following chapter will answer your questions:

• What is trading?
• How does it differ from traditional betting?
• What are the strategies in different sports?

Enjoy reading!

Trading on Betfair seems like a nightmare for beginners.

However, there are several ways to make money on the site, making it a highly attractive option. The one thing all profitable Betfair trading strategies have in common is expertly evaluating the offered odds – judging whether they’re too high or too low.

This is the secret of making money on Betfair – you need to know if the odds are too high or too low compared to the real probability. If you evaluate them correctly, you can make decent money by placing the right bets (BACK – it will happen or LAY – it won’t happen) and at the right time selling them in the opposite direction.

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Have you heard about BACK or LAY bets? If not – don’t worry! In this guide we’ve explained everything you need to know.

What differentiates sports betting from regular gambling (i.e. betting at a traditional bookmaker) is the ability to trade odds.

So what does this give us?

By learning the systems showcased on our website, you will be able to trade odds on Betfair in such a way that regardless of the final result, you will still be making money.

If we want to do sports trading on Betfair, not betting, we have to close the markets at a profit or loss at a specific, predetermined time. Before we start trading, we stipulate that we will close the market if the profit reaches X euros. The same stipulation must also be made for a potential loss, which you have to accept.

Trading on Betfair reveals a great deal of useful information, and if you’re shrewd, this will benefit you. Good traders are distinguished by the fact that they accept a smaller but sure profit and sometimes accept a minor loss instead of tempting fate and waiting to see what happens.

After all, sports betting or trading is about taking advantage of the odds displayed.

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By the way, in this article you can learn more about the differences between traditional bookmaker and betting exchange

There are many strategies associated with trading on Betfair, and we will present the most popular ones in the leading sports.

Football Trading Strategies

  • Laying The Draw (LTD) 
  • Laying Correct Score Markets
  • Laying Big Favourites or Underdogs
  • Laying Correct Score 0-0

Horse Trading Strategies

  • Scalping before the race starts
  • Laying the favourite
  • Laying front runners
  • Swing trading before the start

Tennis Trading Strategies

  • Backing the server
  • Laying the favourite
  • Scalping the server
  • Laying low prices

Cricket Trading Strategies

  • Laying the draw
  • Pre-Match trading
  • Pre-Match scalping

Golf Trading Strategies

  • Trading strokes
  • Trading the course

Greyhound Trading Strategies

  • Scalping
  • Back to Lay
  • Swing

Chapter 2

Types of Trading

Types of Trading

Basic types of trading explained in simple terms.

Find out what it is:
• Swing Trading
• Scalping

Here we go!

Swing Trading

Betfair traders search for fluctuations over a shorter time frame than financial market traders.

Swing Trading is based on the most fundamental Betfair trading concept: Back High, Lay Low (or vice versa). Swing traders look for a ‘swing’ in the odds to ensure a certain profit. Consider the following scenario:

Back at 8.0, then Lay at 6.0, or

Lay at 6.0, then Back at 8.0

The odds fluctuate for a variety of reasons. For example, if you keep an eye on the in-play odds throughout a football match, you’ll see that they fluctuate constantly.

But, of course, the biggest shifts in the game happen after major events, such as goals or red cards.

Scalping

Scalping is a short-term ‘back and forth’ trading method that aims to capitalise on minor market changes for a small amount of money.

To ensure a profit on scalping, you must place two different bets against each other; usually, one or two price moves apart.

This can be achieved by offering a ‘BACK price slightly below the market price, waiting for it to be matched and then accepting a moderately higher ‘LAY’ price. You can then utilize software to ensure consistent returns across all results. What to do if the bet was unmatched? TheTrader has answered in this article.

Scalping requires a large number of small trades to generate profits over time. This can be quite difficult to achieve if you are new to trading. Regularly making a large number of modest and successful trades requires a lot of time and energy.

Swing trading is almost the exact opposite of scalping, which is why it is an excellent place to start for beginner traders.

Many beginners think that matched betting is also a good way to make a profit, but, believe it or not, scalping ends up being much easier.

Chapter 3

Trading strategies

Trading strategies

The most popular strategies used by professionals.

We’ll tell you what it’s all about in:
• Pre-Event
• In-Event
• Hedging
• Dutching

Pre-event

In this case, traders invest and withdraw their money from the market before the match even starts. Trading this way means that you play BACK or LAY bets and sell them before the first whistle or the start of the race if it is a horse race. It doesn’t really matter which type of sports betting you choose.

The main thing is to have an in-depth knowledge of your chosen sport. Pre-event trading is for traders who want to minimize their risks because the odds fluctuate very little before the match. The only exceptions are very rare situations where, for example, it turns out that a key player of a team does not play in the match.

Trading on Betfair requires a significant budget to really get a feel for the profits, as we are aiming for a minimum return on a vast number of bets. This is because the odds fluctuate very little, and therefore the percentage gain in the market is small.

On the other hand, trading ahead of events involves very low risk, so the possible losses are very limited.

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Pre-event trading on Betfair is an excellent way to learn and see if you correctly predict the odds fluctuations.

In-event

In-play trading means that all trades are made while the match is in progress. Not only does this indicate potentially higher profits, but it is also associated with a much higher probability of losing your bankroll. This is because a dynamically changing match can bring swift changes in the odds, leading to quick and significant profits or possible losses.

This type of trading is used by traders who react well to changes in the match and expect big profits but allow for the possibility of losses.

There are many trading strategies on Betfair that can lead to profits. To learn more about them, you can check out our other articles.

Investing money on the Betfair sports betting exchange is vastly different from the usual betting you are familiar with.

Although nothing stops you from gambling with higher odds on Betfair, people who register on the site do so intending to make money with the right sports trading strategies.

This is where the question arises, which Betfair strategies are profitable and bring us closer to achieving our goal?

Basically, to make money on Betfair, you buy LAY when the odds are too low and sell at a higher price, or you buy BACK and sell when odds are falling. This is the method for earning money in the sports market, which is similar to trading on exchanges such as Forex, where brokers take advantage of price fluctuations in different currencies or commodities to make a profit.

If you want to make a quick buck on Betfair, you will need to learn how to analyse the matches and odds.

If you can distinguish between too low or too high a probability in the market, you are on your way to making money.

What’s more, investing in Betfair can make you a profit before the match even starts! How is that possible?

Assuming the odds for a particular match are 2.0 in favour of the home team, we think the odds are too low. In that case, we take LAY because we estimate that the odds will be much lower than this probability.

In fact, after a while, other players notice this and also take such bets, subsequently increasing the odds. When it reaches the 2.3 level, we can buy a BACK bet and make a sure profit before the match even starts.

Yes, it sounds very simple in theory. But as you might expect, in practice, it’s a little more complicated. Still, with a bit of honing and the necessary knowledge, you can achieve results that will guarantee you profits that could make you a wealthy man.

The first step towards this is to understand that trading on Betfair is NOT betting.

We can’t compare the two because making money on Betfair looks completely different. It’s more like investing and making a profit due to correctly evaluating certain products, their prices and predicting which direction that price (odds) will go.

Hedging

What does it mean? 

It is the practice of placing bets on multiple event outcomes after you have placed your first wager to put yourself in a position where you will earn, regardless of the outcome. It is not the same as arbitrage betting, where you take advantage of different bookmakers’ odds. Instead, you capitalise on changing circumstances to maximise your potential return.

Hedging works almost like a safety net. There is no need to risk your money or worry about whether your bet will be successful. If you are willing to accept a smaller profit, it can be risk-free with the right approach.

It also acts as a mechanism for reducing your losses. You may lose a wager, or the odds may not adjust in your favour. If we are serious about making money from trading, we must understand that losses will occur from time to time.

However, we have the option of not losing our entire investment. 

Placing a lay bet as close as possible to the original odds can significantly reduce your loss.

Remember that if we must lose, it is by accepting losses in the trade that we keep our profit margins high.

Dutching

This is a betting strategy in which a player makes many choices during an event to earn a certain amount of money overall. In this case, the bettor must stake appropriately across the various options to yield the same return from each outcome.

On the Betfair exchange, the bettor chooses multiple choices within an event. The stakes are divided between the different options to ensure that the returns will all be the same regardless of the outcome across their selections. 

Another advantage of this strategy is that it spreads the risk across a few options, increasing your chances of getting the outcome right and giving you more than one chance of success.

When there are two or more outcomes that you want to back, and you have a certain betting amount in mind, this strategy can come in handy. Prior to the advent of the Betfair exchange, Dutching was a popular alternative, which allowed bettors to lay (or bet against) the choice, backing all other participants in the event.

Chapter 4

How to start profitable trading: Step-by-step guide for beginners

How to start profitable trading:  Step-by-step guide for beginners

Don’t make any mistakes while trading, and check how to do it properly!

In this section you will learn:

• What should you do before you start trading?
• How to make money trading?
• What to look for when choosing events?
• How to proceed and execute your first trade?

Let’s go!

Everyone who dreams about trading on Betfair markets must be prepared for the fact that sports trading is different from well-known betting on bookmakers. Sports trading is not about getting your bet correct and multiplying it by the odds to enjoy the winning trades or bets.

The basic idea behind sports trading is to trade purchased odds in such a way that you make a profit regardless of the outcome.

So how do you do it?

Simply put – buy cheap, sell high!

You don’t need any trading course, just carefully read what we have prepared for you.

Create an account

Before we dive in, we need to create an account on the Betfair site. To do this, simply follow this link and go through the registration process, filling in your basic details.

Registration form on betfair

Find too high or too low odds

Finding too high or too low odds

To make money on Betfair, we need to effectively evaluate the odds and their relation to the probability of an event. In practice, this means identifying the odds that we think are too low and will go up or are too high and will go down. 

It is vital to choose the right sport – preferably the one in which we specialize – and have enough knowledge to predict the movement of the odds adequately.

Those who know about sports and can compare their knowledge with the odds offered may notice that the probability of some events to happen does not correspond to the odds offered.

Therefore we can expect them to go up or down.

When we find ourselves in such a situation where we have managed to find odds that are too high or too low, we are on the path to making money. We buy such odds!

Expect the odds to change

When we have found a market with undervalued or overvalued odds and taken it, we must wait for that price to change.

It can happen as a result of several factors: people will realize that the odds are wrong and start buying them, causing them to go up or down; something will happen during the match that will affect the odds – the coach will announce the line-up, a goal will be scored, someone gets a yellow or red card; these potential factors are extensive.

Therefore, it is important to follow the odds fluctuations as often as possible.

Our coupon at Betfair

Interestingly, you don’t have to wait for the odds to change on your own. Instead, you can use sites such as Oddsportal, through which you will receive an alert as soon as the odds reach the value you have entered.

The more time you spend on this, the greater the chances that you will be able to sell your bet and make the highest possible profit. In general, trading involves investing a considerable amount of time – it’s like a full-time job.

The odds have changed. We play the opposite bet!

When we have bought the odds, and they have changed in the direction we want, we have the opportunity to make some money, and this allows us to play the opposite bet.

To put it simply – if you have played BACK, you have to counter with a LAY bet at a lower price; if you have played LAY, you counter with a BACK bet at a higher price. That’s the whole secret for success in sports trading on the Betfair Exchange for beginners.

The bigger the difference between the initial odds and the odds at which you counter-bet, the bigger your profit is.

Congratulations!

In this way, you have just made your first greenbook bet!

Even taking into account commissions, this means that you have achieved a situation in which you can make a sure profit, no matter what happens or what the outcome is.

The idea of sports trading is to generate greenbooks and sure profits, not to risk money, hoping that our predictions will find their place in reality.

Chapter 5

Best sports trading software

Best sports trading software

Can software be useful?

If so, which one would be the best?

We check it out!

Is it possible to make a profit without using any trading bot? This is a question that many new traders ask themselves.

Yes, however, some techniques, such as in-play racing trading, and pre-race trading, are not safe to use without rapid prediction software.

So let’s take a look at what trading software is available in today’s market.

Geek’s Toy

Geeks toy trading software logotype

You receive a highly rated piece of trading software with Geeks Toy. It includes Betdaq and Matchbook as well as the Betfair Exchange, of course. You can trade using this tool since it is quick and highly flexible.

It also takes advantage of the single-click betting feature that is common in today’s Betfair trading tools.

With just one click, you may place, alter, or cancel a wager. You may also customize the software’s appearance and functionality. Customization choices include anything from the color scheme to the functionality you want at your fingertips.

The most obvious is that software is considerably quicker and more efficient than Betfair. Betfair’s markets are, on average, automatically refreshed every minute. You may change the refresh rate with software like Geeks Toy, ensuring that you always have the most up-to-date information.

Features

  • In-play interface. In-play trading is extremely popular, and Geeks Toy offers a unique and easy-to-use tool to help in these marketplaces. With a single click, you can see the whole market and play your bets.
  • Lightning fast, responsive interface. Above all, Betfair third-party trading software must be fast. Because you’re betting in real-time, with markets changing every second, you risk missing out on the best price if the prices don’t update promptly. As a result, Geeks Toy has earned a reputation among professional traders as the fastest and most trustworthy program available.
  • Enhanced Market navigation. There aren’t many websites that handle navigation as well as Geeks Toy. While other applications might be intimidating when you first log in, Geeks Toy makes it very easy to explore the markets and pick the ideal one for you. This is beneficial to new users seeking an easy-to-use experience and seasoned users who need to find their markets quickly.
  • Multi-Market trading. While many novice traders begin by placing, and watching only one market at a time, as you gain experience in the game, you will notice that there are more and more chances appearing by the minute. This is where the ability to monitor numerous markets at once comes in handy. With Geeks Toy, you can view many markets at once and arrange them in whatever order you desire, such as by sport type or start time.
  • Dutching & bookmarking. Advanced Dutching and Bookmaking features are included in Geeks Toy, allowing you to employ these techniques in your betting and trading without the need for complicated calculations.

Advanced charts. When it comes to data visualization, every trader will have distinct tastes, and Geeks Toy’s sophisticated charting allows for a lot of customization. Up to three distinct sets of advanced charts can be created, each with its own set of setup choices.

Pricing

3 Months Access£20
12 Months Access£60

Gruss Betting Assistant

Gruss trading software logotype

Gruss Betting Assistant is a third-party trading software that works with the markets. This means that you can trade on exchanges without having to go via their website.

In addition, using third-party software like Gruss Betting Assistant offers you access to a variety of features not available on exchange websites.

Gruss Software provides one-click betting in a standard or ladder-based interface and the ability to link into Excel and place bets using predefined triggers. Green-up, fill or kill, stop loss, dutch betting, coupon market view, and many more features are included in Betting Assistant.

Features

  • One-click betting on all three back & lay prices
  • Continually updated display of potential profit
  • Option to take profit (or minimise loss) with one-click (stakes auto-calculated)
  • Dutching facility on back and lay bets
  • Ladder Interface showing full depth of market
  • Tick offset bets with sliding stop loss
  • Forum allowing direct access to the application developers, and other users

Real-time update of prices and triggered betting from an Excel spreadsheet

 Pricing

Betting Assistant for Betfair (monthly subscription) £6 Initial charge then £6 every 30 days
Betting Assistant for Betfair (annual subscription)£60
Betting Assistant for BetdaqFREE*

* Gruss Software reserves the right to charge for this product in the future.

Bet Angel

Bet Angel trading software logotype

This software walks you through the Betfair trading procedure. It’s a well-established service that’s been around for almost as long as Betfair.

However, according to the developer, it was the first Betfair application to employ stock exchange-style software.

It can be used in three distinct ways. Bet Angel Trader, Bet Angel Professional, and Bet Angel Basic are the three options. Whichever option you select, you will have access to a sophisticated tool that allows you to place bets quickly and easily. Each one is unique regarding what it has to offer, which is reflected in the pricing differences.

Features

  • Practice Mode
    A fully functional mode that allows you to learn how to use the program safely.
  • One-Click Betting
    Place bets quickly using automated trading settings.
  • Ladder Interface
    To see a wider variety of pricing, use the vertical price ladder.
  • Advanced Charting
    There are several technical indications offered.
  • Dutching & Bookmaking tools
    In a single market, back or lay numerous runners.
  • Excel spreadsheet Integration
    Using Excel, you may create your own complex trading or betting bot.
  • Guardian
    Betfair Multi-Market Trading with Bet Angel Professional
  • Advanced Automation
    Make your trading or betting completely automated.

Pricing

Trials are limited to once per person and last for 14 days.

1 day£0.99
1 month£29.99
2 months£39.99
3 months£59.99
6 months£99.99
1 year£149.99

Chapter 6

How to become a professional trader: Betfair trading tips from TheTrader.bet

How to become a professional trader: Betfair trading tips from TheTrader.bet

Useful tips you must know!

Check out the most important aspects of successful trading.

  1. First and foremost, focus on a particular sports market. There are so many variables that it can be difficult to keep track of them all. You must focus your efforts on comprehending what is happening in front of you before estimating the magnitude of the bias. This cannot be achieved by jumping from one method to the next. You will make much more profit if you specialize in a specific sport.
  2. Create a long-term strategy. Professional Betfair traders don’t become successful overnight; mastering this new talent will take some time. The quickest way to success is to realize that you’d be better off planning everything for the next couple of months.
  3. Manage your budget properly. When trading or betting, make sure you understand money management and your goals. If you don’t, you’ll lose everything.
  4. Learn the differences between the exchanges and bookmakers. Knowing the distinction between financial and sports markets is essential. The key differences are as follows:
  • Trading ability
  • Laying ability
  • Much higher odds
  • No limits on stakes
  • Someone else’s blunder is your chance for success

    And it is the latter difference that is the basis of much of the trading on Betfair.
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Do you want more? Compare Betfair to the other betting exchanges:
Betdaq Exchange vs Betfair Exchange

Chapter 7

FAQ

FAQ

1. What is Betfair sports trading?

Betfair is a betting exchange where anyone may purchase and sell bets on sports events. When you trade on Betfair, you are betting against another human being, not a bookmaker, as you probably did before.

2. How does Betfair trading work?

In a simple way. Trading is possible thanks to the possibility to place back or lay bets on the Betfair Exchange. The main aim is to back at a high price, lay at a low price. You may build a ‘greenbook’ by making a bet at a favourable price and then trading out of it as the price falls. A greenbook is a bet in which you have a guaranteed profit regardless of the outcome.

3. How much can you make with trading on Betfair?

Although the money you will make per every trade will be small, you will strengthen your budget and start making more profit if you perform the process often enough. It all depends on your initial budget, of course, and depending on your chosen strategy, you may need a special calculator.

4. How to start trading on Betfair?

Although it is necessary to have a stable network connection and create a Betfair account on the exchange, the entire process is explained in the article above. Successful trading is based on finding odds that are too high or too low. This allows you to make a profit on the Betfair Exchange effectively. Indeed, many people trade on Betfair for a living.