Lots of people dream about making money from sports trading on Betfair, but how does it actually work and where do you start?
Sports trading is different from placing a bet and waiting for the final result. By backing and laying selections on a betting exchange such as Betfair, you can take advantage of changing prices and close your position before the event has finished.
I've been trading football on Betfair since the early 2000s. In that time, I've helped many hundreds of beginners learn how sports trading works and how to approach it properly.
In this article I will explain exactly what sports trading is, how it works and what you need to get started as a sports trader today.
What is sports trading?
Sports trading is based on buying and selling positions as the odds move on a betting exchange.
You can back an outcome when you think the odds offer value, then lay the same outcome later at a different price. You can also do this the other way around, laying first and backing later.
If the price moves in your favour, you may be able to close the trade for a profit before the end of the event. If it moves against you, you can also close the position and reduce your potential loss.
It's very similar to trading the stock market, except that the betting exchange market only lasts for the duration of the sporting event.
This could be the 90 minutes of a football match, the 5 days that a test match lasts in cricket or even a 2 minute horse race!
Trading vs betting
The main difference between sports trading and betting is what happens after the first bet is placed.
With traditional betting, you usually place your bet and wait for the final outcome.
Sports trading gives you the option to adjust your position before the event has finished.
That means the final result is not the only thing that matters. A trader is also looking at how the odds change and whether those movements create an opportunity to act.
Ultimately, sports traders have more control over how they manage their money than bettors.
We explain back and lay betting very simply, with plenty of screenshots. This is how Betfair football traders back lay in order to make a profit.
What sports can you trade on Betfair?
Betfair Exchange offers trading markets across a wide range of sports, but some are better suited to trading than others.
Football, tennis, horse racing and cricket are among the most popular because the odds can move significantly as an event develops.
When I first started sports trading, I decided to focus on football. There were a few reasons for that:
This is because:
- There are plenty of football matches played all year round at different times of the day (and night).
- A football match only lasts 90 minutes (plus added time) so I know roughly how much time I need to set aside.
- Most importantly, football has always been the sport I know and enjoy the most.
That last point is worth thinking about if you are new to sports trading. Learning is much easier when you already understand the sport and enjoy following it.
Tennis is another popular choice because the balance of a match can change very quickly. Individual points, breaks of serve and sets can all cause the odds to move sharply, creating plenty of trading opportunities.
Horse racing and cricket also have active trading markets.
Each sport behaves differently, so rather than trying to trade everything at once, it usually makes sense to choose one sport and learn how its markets move before branching out.
How does sports trading work?
Sports trading is all about taking advantage of changing odds. In football, prices move throughout a match as time passes and goals are scored.
Here's a real example of that, using the UEFA Champions League quarter-final match between Bayern Munich and Arsenal.
About an hour into the game, the score was 0-0 and I backed 'Over 1.5 Goals' at odds of 4.0 with a stake of £20.00.
As you can see below, that gave me a potential profit of £60.00 (before commission).
The left hand side of the Betfair market shows both my liability and potential profit:
- Under 1.5 Goals: -£20.00 liability
- Over 1.5 Goals: £60.00 potential profit
Within a minute or two, Bayern Munich took the lead.
When the score was 0-0 and there was only 30 minutes to play, I was able to back Over 1.5 Goals at 4.0 because the market was not sure that there would be 2 goals scored.
However, with the score now 1-0 and Arsenal having to attack in order to avoid defeat, a second goal was deemed much more likely so the price dropped accordingly.
You can see on the graph below that Over 1.5 Goals was only 1.2 to back at kick-off and that the price steadily rose as the score remained 0-0 with time ticking away.
The price reached a high of 4.7 before Bayern Munich scored, then it fell sharply.
As a sports trader, this price movement was perfect!
I was able to lay Over 1.5 Goals for the same £20.00 stake but at a much cheaper price.
This completely removed my liability on Under 1.5 Goals:
- Under 1.5 Goals: £0.00
- Over 1.5 Goals: £47.40 potential profit
I now had a risk-free bet on there being a second goal, which is a massive benefit to sports trading over traditional sports betting.
But I didn't stop there...
With plenty of potential profit on Over 1.5 Goals and the price to lay well under 2.0, I decided to hedge my position, also known as 'greening up'.
I layed Over 1.5 Goals again, this time at 1.61 with a stake of £29.08.
This left me with a guaranteed profit no matter the final score:
- Under 1.5 Goals: £29.08 profit
- Over 1.5 Goals: £29.66 profit
It was a good job that I did decide to green up as the final score was 1-0 so my risk-free bet on Over 1.5 Goals would not have won!
When trading on sports yourself, you can quickly work out how much to back or lay using our free hedging calculator.
Pre-match vs in-play sports trading
Sports trading can take place either before an event starts or while it is in-play.
Pre-match trading is exactly what it sounds like. You take a position before the event begins and hope to take advantage of any price movement before it gets underway. Team news, injuries and general market activity can all move the odds.
In-play trading is different because you are reacting to what is actually happening. A goal in football, a break of serve in tennis or a wicket in cricket can all cause prices to move very quickly.
Which approach suits you best will depend on the sport you trade and how involved you want to be while the event is taking place.
Can you make money from sports trading?
Yes, it is possible to make money from sports trading, but initially you need to spend some time learning how it works.
There's a popular saying among sports traders, "learn before you earn". It's unlikely that anyone will log into Betfair and start making consistent profits straight away.
Some traders do eventually make a full-time income from sports trading, but that normally comes after building up plenty of experience, developing a reliable approach and learning how to manage risk.
At first, it's best to pick one sport that you have some knowledge of and focus solely on that. It could be football, tennis, cricket, or whatever appeals to you.
Then you need to learn how to identify trading opportunities in your chosen sport, how to profit from them with a trading strategy, how to manage your bank and so on.
Our Goal Profits Academy football trading course covers all of these topics.
Goal Profits Academy is our complete football trading course. Learn how to trade, based on proven methods that we’ve been using successfully for many years.
Sports trading strategies for beginners
There are many different sports trading strategies, depending on the sport and market you choose to trade.
In football alone, you can trade goals, match odds, correct scores and different stages of the match. Some strategies involve getting into the market early, while others require you to wait for a particular situation before placing a trade.
If football is the sport you want to trade, the first thing to do is download our completely free football trading strategy.
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Once you have had some practice with First Half Heaven, you'll be keen to start building a larger portfolio of trading strategies that you can also profit from.
Lay the Draw is a popular football trading strategy and has been around for many years.
Although the traditional approach is not as effective as it once was, it is still a useful example of how traders can profit from changing prices during a match and a good strategy for beginners to understand.
How to start sports trading on Betfair
Here's a simple plan to help you get started with sports trading:
1. Choose a sport you know and enjoy. It is much easier to learn when you already understand how the sport works.
2. Set aside a separate trading bank. Only use money that you can afford to risk.
3. Open an account with a betting exchange, such as Betfair, and make sure you understand how back and lay bets work.
4. Start with a simple trading strategy. Keep things straightforward while you get used to how sports trading works.
5. Keep your stakes small while you gain experience. The aim at first is to become comfortable with how the markets move and how trades are managed.
6. Keep learning and reviewing your trades. A good trading community can also be useful when you are starting out.
Between the Goal Profits team, we have more than 75 years of football trading experience. If football is the sport you want to trade, you can learn from that experience through our strategies, tools and community.