Many people that use Betfair, even if they don't realise it, are traders. If you ever change your position on a Betfair market - then you are trading. If you ever try to lock in a profit before an event has finished, that's trading. Use this section for an in-depth analysis of trading and techniques around it.
The concept of trading
The original versions of these articles were written in 2005 by Peter Webb, founder of BetAngel, specialist trading software for Betfair. Visit BetAngel for a wide range of demonstration clips and for more information about their products.
Cold trading on Betfair
Cold trading - how is it done? Ever wondered how these guys with no interest in horse racing can make steady profits by trading? Cold traders read the market and profit from its trends rather than studying the form.
Trading In-Play on Betfair
In-play betting is one of the biggest benefits of Betfair. It enables you to place bets right up to the final whistle or until the winning horse passes the post - or even after that if it's a photo finish...
Advantages of betting on exchanges
Betting exchanges such as Betfair have revolutionised betting due to the way they operate.
Exchanges offer - in the majority of cases - excellent prices at which to back a runner.
Further more if we don't like the odds on offer, we can always ask for better odds.
If we don't fancy the selection at all we can lay it.
Traders on Sports markets on Betfair
Traders now account for a large number of bets and volume of trade on Betfair sports betting markets.
For the average punter this means a full range of odds are available to both back and lay and in sufficient volumes for the biggest gamblers.
Traders also tend to push the over-round close to zero, meaning that the book is close on perfect with little margin given away to the bookmaker.
Top traders using advanced strategies can achieve a situation where they'll win around 90% of the time on each and every race.
Traders often trade more than one horse in a race thus increasing profits.
Trading on a Horse Race on Betfair
Time for an example. In this particular race I have placed a series of bets on Hidden Jewel. I correctly forecast that the price would come in. I have no interest in the horse, its form, the course or state of the going.
Ten common mistakes made by traders on Betfair
1. Trading Timescales
You must make sure that you match the timescale of your prediction of the price's movement with the amount of time you hold your position.
A classic mistake is trading on the favourite's price three minutes before the race and you see that the price is being backed heavily and is thus shortening (decreasing). You think that this horse has a really good chance of winning so in addition to trading you decide to back it...WRONG!!!