Here is a short article to help you understand how, as a Betfair customer, you can achieve that idyllic situation on your account - the fabled Green Book. The concept of being able to create a position on a market where you eliminate any risk and put yourself in the green on every possible outcome so that you guarantee yourself a profit is what has enabled Betfair to revolutionise the betting industry.
This is only possible when the conditions are right, but here's a little insight to help you understand how it works:
I back a horse in a ten runner field for £100 @ 6.05/1. My liability at this point is £100 (if the horse doesn't win) and my possible profit is £500 (if the horse does win).
The horse is fancied and approaching the start of the race, its price has dropped to 3.02/1 to lay. This is a perfect opportunity to trade out of my position and eliminate the risk of losing my £100. If I lay £100 @ 3.02/1, this is what happens:
The worst that can happen now is that we get our £100 back and lose nothing. However, we still stand to win £300 if the horse wins.
The reason that this works is that the system knows that one bet will definitely win and one will definitely lose. It will always calculate the worst case scenario at any one time and this is what will be reserved in exposure. On the site, if you have your P&L function ticked within Options, it would show + £300 next to your selection and -£0 next to every other runner. The P&L function shows your profit or loss on the market should that selection win.
And don't forget, although our example cites horse racing, this tactic can be employed across any sport.
So, the basic rules for trading are:
- Back big & lay low. If you are trading, always back at a higher price than you lay or else your Green Book will become a Red Book, which is literally the opposite of what you want.
- The bigger the difference in the two prices, the more you stand to win if the result goes your way. You could wait and see the gap increase but alternatively, you may miss the opportunity. Timing and judgement are everything when it comes to trading.
- It is vitally important that both bets are matched otherwise you could still end up just paying out a losing bet.
- Understand the factors that cause markets to move in order to predict fluctuation.
In our example we used the same stake as liability which eradicated the risk, but it is also possible to win a larger stake than we backed at, thus achieving the fabled Green Book and enabling us to make a profit whatever the result. After placing a larger lay bet at a smaller price, our exposure releases our previous liability but will not credit us with the possible profit until the result is known.
After settlement, you are credited with any outstanding winnings.
For more information on how to win with Betfair, click here