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All you need to know about trading in the betting exchange

Although sports trading sounds like a new concept to many bettors, it is actually an active betting mode for several years.

An interesting combination of classic sports bets and financial trading is the perfect way to improve your bets and earn profits if you know how.

The betting exchange may seem difficult, but in reality it is very easy to understand and start practicing.

However, a bit more inexperienced bettors will have to: start slowly, have an initial budget, read sports trading strategies and learn the trade before investing larger amounts of money.

So this article should help you understand the basics of sports trading and help you if you want to get started better.

Betting Exchange explained easy

Since sports trading is a mix of sports betting and standard financial trading, you need to know that the best way to explain it is to analyze these two concepts separately.

Sports bets are when a bettor makes predictions about the outcome of sporting events.
To do this, bettors bet real money, trying to get the best odds and waiting to determine if they made the correct predictions.

On the other hand, trading is the buying and selling of shares or commodities, taking advantage of the price difference between the two exchanges.
In other words, a good stock market investor buys shares at a lower price than when he sells them himself.

Sports trading is, in a sense, trading with sports betting odds.

In the betting exchange, however, the trick is to place two opposite bets for an event; the purpose of this is to profit from the change in their value.

To make this easier to understand, there are two basic bets in sports trading: Betting (Back) and Banking (Lay). These two correspond to the sale and purchase in regular trade.

So when you’re staking, you’re actually selling a share, whereas when you wager it’s the same as buying a stake.

Earnings every time you sell at a higher value.

Where to try sports trading?
Bookmakers offering the betting exchange

You can do it with betting exchange operators. The most popular is, of course, Betfair.

In a sense, they invented sports trading and are now considered the first-rate betting exchange.

Betfair offers a great platform, fair odds (established by the bettors’ market) and many other sports traders ready to buy or sell their bets or banknotes.

Matching bets

Unlike standard sports bets, where you simply place bets using the odds provided by the bookmaker, sports trading takes place between traders of the same trading platform.

Betfair, for example, keeps commissions only as a charge on winnings.

This means that to make sports bets it is necessary to match bets placed between users (one tip and one bank the same odds for that event).

The platform shows the bets immediately available and the demand and offer for all the odds.

Responsibility and earnings

Once the betting exchange has been explained, what everyone has to ask is how to make and calculate the profit.

Well, the short way to explain it is that the profit from a transaction is calculated by subtracting the responsibility from the profit of the stake.

For example, let’s say there is an upcoming game between Milan and Atalanta. The odds for the bet (in favor of) for Milan’s victory are 1.99 and the share of the bank (against) always on Milan’s victory is 1.96.

In case you bet € 100 on each option, the profit of the bet bet would be € 99, while the liability on the bank would be € 96.

In a scenario in which Milan is the one to win, the gain of the exchange would be subtracted from the € 99 won with the bet and the € 96 lost by placing Milan at 1.96.

You will have made € 3 earned difference.

There is no doubt that for some traders 3 euros may be few.

However, it must be considered that it is often much smarter to invest in guaranteed low profits than to make highly profitable, but also high-risk bets.

It’s up to you to choose what and how much to play. Always go as low as possible.

By betting little and regularly, small profits can be quickly added up to a larger sum.

Keep in mind, however, that even sports trading, even if done intelligently, involves risks of losing money. Just like classic bets.

However, there are some tricks to maximize your chances.

Useful tips for novice bettors

Now that you know the basics of the betting exchange, I would like to list some tips for beginners.

Start slowly and with a limited budget. You can invest more money once you feel you have learned more.
Don’t be afraid to remove unmatched bets to place bets that ensure similar odds.
Avoid chasing losses and try to remain calm. Sports trading is for those who are patient and reasonable.
Focus on a single sport. Find a sport that fits your sports trading style and respect it; there is no need to be an expert in football, horse racing and basketball. A sport is more than enough to make profits.
Continue to learn and be persistent.