Football trading and football betting have some similarities, but they work in very different ways.
With football betting, you will usually place a bet at odds you believe offer value and wait for it to settle. With football trading, you can open and close a position as the odds move, potentially securing a profit before the match even finishes.
This gives you more flexibility and control, rather than leaving everything in the hands of the football gods.
For a complete introduction to the subject, take a look at our main football trading guide.
Football trading vs betting at a glance
How does football trading work?
Imagine you back a team at odds of 3.00 before kick-off.
The team then scores the opening goal and the odds on them to win fall to 1.80.
Because you are trading on a betting exchange, you can now lay the team at the lower odds and secure a profit.
It doesn't matter anymore whether the team goes on to win, draw or lose because your trade has already been completed.
Trading can also work the other way. If the match is not going as you expected, you may be able to close your position early and take a smaller loss rather than leaving your full stake at risk.
The main difference from traditional betting is you are not always waiting for the final result. You are trying to take advantage of the way the odds move during the match.
Our guide to back and lay betting explains how placing the two sides of a trade works in more detail.
Value betting vs trading
The main idea of value betting is to find bets that have been priced higher than you think they should be.
A value bettor may still back a team even if they think it is more likely to lose than win, as long as the price still offers value. Once the bet is placed, they will normally leave it open and wait for the market to settle to extract the maximum value.
Football trading tends to be more structured.
Usually you would start by looking at stats to find suitable selections for the day, then enter a trade at a planned point, or when in-play stats fit your criteria.
From there, you would manage the trade depending on what happens in the game. That could mean targeting a goal during the first or second half of a game, or trading the correct score market.
Finding value still matters, but trading gives you more control over when you take a profit.
Of course, even a good trade can lose, just as a good value bet can. What matters is whether the opportunity fitted your approach and whether you managed it properly.
Is Cash Out the same as trading?
The Cash Out feature offered by some bookmakers can look similar to trading because it allows you to settle a bet before the match has finished, but it works quite differently.
The difference is that the bookmaker decides what cash out amount to offer you. That price will usually include an extra margin, so it is poor value most of the time.
Cash out is also not always available. A bookmaker can suspend it at any time and there is no guarantee that it will be switched back on.
On a betting exchange, you close the position yourself by placing the opposite bet at the odds available in the market. You can also just secure a scratch result and leave profit on your chosen outcome, so your stake is no longer at risk.
It gives you much more control over the price you accept and when you exit.
Which approach is right for you?
You don't necessarily have to choose between them, but some people naturally gravitate towards one or the other.
Football betting might be more up your street if you prefer to research your selections, place your bets and then let them run, otherwise known as a 'set and forget' approach.
Football trading might appeal to you more if you like to follow a strategy and have more control over your profits and losses.
It usually requires a bit more involvement, although how much time football trading takes will depend on the strategies you follow. It also gives you more options as the match unfolds.
It comes down to how hands-on you want to be!