Even though sports betting has been around for many years, many punters ignore the way of sports trading, and they can’t tell the difference between a sportsbook and an exchange.
Betting exchanges have been around for a while, and they changed the way we bet in sports by bringing trading onto the table. The exchange that started all and brought this new way of betting, and till now remains the biggest on the market, is Betfair.
Betfair Exchange was founded in 2000 and introduced us to new things in betting that differ significantly from the traditional sportsbooks. The first big difference is that Betfair is not a bookmaker. The concept of the exchange is betting against other players, unlike sportsbooks where the punters play against the house. In that way, we can say that the bettors are also the bookies.
The second and more important thing is that Betfair imported lay betting into the game. This means that instead of backing a bet (which is exactly like the traditional bet, putting a wager on the outcome) you can also lay a bet (which means you are betting against the outcome). With these two choices, Betfair trading was born. A strategy that many players use for sure profit.
What is trading in Betfair and how it works
But what exactly is Betfair trading? To put it simply, trading with Betfair means that you can place two bets against each other on the same event to have sure earnings, without caring about the outcome. Maybe it sounds a bit complex but in fact, it’s easier than it looks. In stock markets, traders try to buy at low prices and sell high. In Betfair trading your purpose is the opposite, back a bet in its highest odd and lay a bet in its lowest odd to make a profit.
Let’s see how it works. Having in mind that odds are constantly changing, the first step is to find odds that you think will be lower before or during a match. For example, you put a 10$ wager on the draw of a football match at 3.5, meaning you back this specific outcome. If the match ends in a draw, then you will win 25$ and if it doesn’t, you lose your 10$ stake.
But if the score is a draw at halftime, the odds will shorten to around 2.5 for example. Then it’s your opportunity to lay on the draw with a stake of 15$. In that case, if the match ends with a win for the home or away team you will earn 15$ or else you must pay the liability of your bet, which is 22,5$.
So, if the match ends up in a draw you earn 25$ from your back bet and lose 22,5$ from your lay bet (+2,5$ profit). If the match ends with a win for any of the teams you earn 15$ from your lay bet and lose 10$ from your back bet (+5$ profit).
As you can see, whatever the outcome of the game will be, your position guarantees a profit. In general terms, this is how trading with Betfair works, and many punters use it to securely increase their winnings. The only thing they must do is to find an odd that will drift. Of course, Betfair trading can be applied to many more sports like basketball, tennis, or even horse racing.
For example, we place a bet on a horse to win at an odd of 5. If you guess correctly and the odds for any reason drift before the race, then all you must do is to lay a bet on the same horse. Your profit will be sure. The same thing you can do from the opposite side. Find a horse that you think its odds will go higher. In that case, you must lay a bet first and then, when the odds rise, place a back bet to secure your profit.
Trading with Betfair is widely promoted as the platform’s big advantage and to be honest it truly is. But that’s not the only thing the players have to earn by betting on an exchange. Except trade, Betfair offers better yields than the average bookmaker, which sometimes might be 20% higher. This happens because, as we said earlier, Betfair is not a bookmaker. The players are the bookies, and they are the ones to create the odds. Betfair just provides the platform for the punters to bet against each other.
But then, how does Betfair earn money from all this? Trading with Betfair is an essential tool for the bettors and the company wants players to use it. The Exchange earns by keeping a small commission from players’ profit which can be around 5%. In addition, there are still more advantages if you choose to trade in Betfair.
There are cases in traditional sportsbooks where an account is banned because of big winnings. In Betfair, you don’t need to worry about that as the platform doesn’t care if you win or lose and your account won’t be limited or banned. It’s something that all punters are afraid of in case they win a big amount of money.
To sum up, is trading with Betfair worth it? The answer is yes. All punters must try to trade with Betfair as the advantages will be many in contrast with the classic sportsbooks. It’s very important that players bet against each other by making their own odds, which leads to significantly higher yields than any other bookmaker in the market. Also, you have the choice to lay against an outcome or place a back bet, which gives you the ability to trade. Betfair is the first exchange that brought this way of play and it’s the biggest one till now.
Moreover, if you want to trade with Betfair, you know that you are betting on the higher odds in the sports market and you ‘ll nearly always get a better price. The platform has a small commission comparing to the other online betting platforms, while you don’t have to be afraid in case your profits are big, because Betfair will not ban or limit your account.
