Trading on Betfair : The rise and rise of Cricket trading
"Matches such as Ireland vs UAE reached the remarkable amount of £63m in matched bets."
Cricket was once known as a slightly slow sport played by English gentlemen on village greens each Sunday during the summer but key changes in the format of games has transformed it into a much more exciting game and trading medium. Peter Webb explains...
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Over the Christmas period we witnessed the T20 big bash league in Australia which achieved huge trading volumes. We are now into the ICC World Cup and it's easy to see the momentum from the Big Bash has been carried forward. Recent matches such as Ireland vs UAE reached the remarkable amount of £63m in matched bets. That is far, far bigger than almost any market you will see on the exchange.
A lot of people still think of cricket in the five-day Test match format. The main incentive of the long game is to not get out and it only ends when both teams have been bowled out, or in the case of a British summer, when the rain wins the match.
The big bash and current World Cup are based on limited overs. When a team comes into bat they have to hit as many runs as possible without getting bowled out. This can lead to some exciting matches and close finishes as teams decide to throw everything at chasing down a big run total. In the case of Ireland vs UAE, Ireland beat their opponents total with only a few balls remaining and even less wickets. UAE traded as low as 1.121/8 before going on to lose.
I have to admit though that I'm not a big cricket trader, yet. There are only 24 hours in a day and therefore I have to pick where to put my focus and all my time is spent on the big three - racing, football and tennis. But one thing in particular has caught my eye and is bringing my focus more into the realms of limited over cricket. Between 2007 and 2012 cricket turnover ballooned nearly five-and-a-half fold to £5.8bn a year on Betfair. It's been growing so quickly that it broke through in-running racing in 2010 and hasn't looked back. Turnover in cricket markets is growing fast!
From a trading perspective it's a two-runner market, like tennis, and similar trading styles can be applied. The propensity of teams to swap leads is quite common and a couple of quick wickets can change the complexion of a match. But as always, every sport has its little nuances. In the case of cricket not all wickets are treated equally and then we have the complication of the weather. In the event of a lot of rain the outcome of a match can be settled by an equation!
But overall, limited over cricket lends itself well to trading. With the growth and availability of all year opportunities, there has never been a better reason to get more interested in trading cricket. Especially during the current World Cup in Australia, which is definitely worth a look.
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