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. All I have monitored here is the way which the money has arrived in the betting market and how it has flowed from one side of the book to the other, moving the price on Hidden Jewel.

By backing and laying several times as the price moved, I now have a profit on this horse of £24.55.

My potential loss is zero, I cannot lose on this race, it's a punter's nirvana; all I have is 100% upside. The £24.55 is now spare for me to do with as I wish. As things stand, I will win £24.55 if Hidden Jewel wins and if it does not win I will lose nothing.

If I wanted I could now oppose Hidden Jewel with no liability. This is because I already have 'free' money at my disposal on this horse and this would enable me to have a 'green' P&L, i.e. no losses meaning that whoever wins the race guarantees a profit. The image below shows what will happen if I lay Hidden Jewel at the price of 2 to balance up my book.