Trading On Betfair For A Profit?

Posted on October 11, 2007
Filed Under Trading For Profits, Betting Software, Horse Racing |

Have you considered trading on Betfair for a profit?

First, what is trading?

Trading is basically buying low and selling high. In Betfair horse racing terms this would mean that we need to back a horse at a higher price than when we lay the same horse. A trade is a pair of bets.

1 Back bet and 1 Lay bet.

Eg. Back horse A at odds 3.25 odds and then lay the same horse 1 minute later at odds 3.10. This is a successful trade.

You then have 2 choices. You can leave the price difference on that bet to ride the horse during the race. If Horse A wins you then win the price difference. However, if Horse A losses, you will win nothing. The important benefit of trading and securing the price difference is that you will lose nothing if Horse A losses. A successful bet will give you a free bet on that horse.

Here is an eg.

Back $100 @ 3.25 = $225 potential profit

Lay $100 @ 3.10 = $210 potential liability

Profit is $225-$210 = $15

If Horse A wins the race you will make $15, if horse A loses you lose nothing.

The second choice that you have is to hedge that price difference. By doing this, you will make money no matter what the outcome of the race is. Meaning that if Horse A wins or losses you are still in profit. This is my preferred trading strategy.

How to hedge a trade?

Using the same example as above, you now need to take $15 and divide it by the current Lay odds.

So if they lay odds is now at 3.10

i.e 15 /3.10 = $4.83

You need to lay $4.83 at odds 3.10 to make $4.83 whichever horse wins the race.

Now you are wondering…which horses are suitable to trade on. When I first started out, I bought an ebook for 47 pounds to learn information that is readily available for free today.

Anyway, the basic strategy is to find horses that are/will be steamers or drifters. This is easily accomplished by scanning through racing post and selection VERY HOT favourites. You can also select horses that will are not favoured.

VERY HOT FAV - Any horse that has 7 or more tips and when there are no tips for other horses.

You need to find these horses early on, like after the days’ races. Start scanning through racing post and place your bet early. The price of the horse will drop over the next couple of hours. You can then lay it at a lower price.

If you have a big betting back, then you can do the reverse for the drifters. Select a horse that is not favoured and lay it early on then watch as the price of the horse increases significantly.

These are just 2 very basic trading methods.

The other popular and most often used method is to trade during the last 5 mins before the race starts. As there is hundreds of thousands changing hands during this last minutes, then potential is far greater to execute a few successful trades at this time.

Doing this manually on the Betfair website is almost impossible, but with the use of a trading software the bets are easily executable.

In my next post, I will be reviewing the best trading software on planet earth. The best part about it is that it is completely free for anyone with a Betfair account to use the grid interface to place your bets.

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