The Basics of The Basics of Betfair TradingBetfair Trading

• Betfair is the biggest betting exchange on the internet. Although the site does offer casino, bingo and arcade – among others – it is primarily used for sports betting.

• The exchange covers a variety of sports, including football, basketball, rugby, cricket, tennis, horse racing and golf – just to name a few. Basically, if you enjoy watching sports and like to bet on things that will or won’t happen, Betfair is the place for you.

Backing and Laying 

• As an exchange, there are two types of bets you can place: you can either back or lay a selection. Backing is basically when you bet for a selection to win. For example, you back New Zealand to win the Rugby World Cup Finals against Australia. A lay bet, on the other hand, is the complete opposite in that you bet AGAINST a selection from winning. You need to have both a backer and a layer on Betfair for a bet to take place.

• Let’s put this into an example to illustrate it properly. We’ll use the upcoming Premier League match between Chelsea and Liverpool as an example. If you back Chelsea to win and place a £10 bet on it happening, you get back your £10 plus profits (the total amount depends on the odds). However, should Chelsea lose or draw, you’ll lose your entire bet.

• But let’s say you believe Chelsea will win but you also want them to draw. You do this by laying Liverpool. Instead of inputting how much you’ll bet, you put in the amount you wish to win from a backer. For example, you wish to get £10 out of them.

• In order for that to happen, you need to put up a certain amount of money (the liability) – the amount of which depends on the odds. Should Chelsea win or draw, you get £10 from the backer. If Liverpool wins, you lose the liability amount you put up.

• Both backing and laying can be used to trade events.

Terms to Remember 

• Green up – hedge for profit on all selections• Hedging – equalise profits or losses for all selections regardless of result• Red Up – hedge for a loss on all selections• Scratch – cancel a trade; happens when an opposite bet is placed at the

same odds or the bet is cancelled before it is matched• Stop loss – a bet placed that guarantees a person won’t lose more than a

specified amount on a certain trade; this is usually done with the help of a trading software

• Tick – difference between prices that are closest to each other• WOM – stands for weight of money; refers to the amount queuing above or

below the current odds

Different Types of Trades 

• Cross Market Trading – where back and lay bets are used in more than one market.

• Scalping – describes short-term backing and laying in order to make multiple yet very small This kind of trading is best used for markets that are fast-paced like pre-race horses.

• Swing Trading – involves backing or laying at the current price but also putting a counter bet a couple of ticks This form of betting is risky because there is no guarantee a swing will ever occur. Although it can deliver huge profits, equally huge losses can be expected if something goes wrong.

Important Tips 

• Stick to one market. If you love sports and watch a variety of them, stick with the ones you’re most comfortable with. For instance, if you enjoy watching both football and rugby but tend to know the intricacies of the former much better, then stick with what you know.

• Start small. When you’re trying to get a feel for things, don’t risk your entire bank

• Have enough money in the bank. Put up a separate account solely for Betfair This way you don’t confuse your money and only spend what you have set aside for Betfair.

End. Thank you