The arrival of the betting exchanges back in 2000 has completely transformed the world of online sports betting, bringing not only competition to the traditional bookmakers but also a world of exciting opportunity for the betting exchange trader.
Betting exchanges transformed the world of betting when they arrived on the scene back in the year 2000, a move which saw regular bookmakers dive for cover, and a new door being opened up for the everyday punter to become an expert in a new style of betting that could only ever be a positive thing… Trading the betting exchange markets.
Betfair brings the opportunity for players to win large amounts of money, not by betting, but by trading sports markets to guarantee a profit no matter what the result may be.
Betting on the Betting Exchanges
Traditional bookmakers offer you the chance to bet on an outcome. If you are very good at correctly predicting outcomes, and enjoy regular success and nice profits, bookmakers will generally do one of two things. Either limit the amount you can bet with them or completely suspend your betting account.
This is the first plus point of Betfair. You will NEVER be suspended or limited because Betfair isn’t reliant on the punters losses to create an income. More about how and why in a minute.
The second huge swing in favour of Betfair are the odds. Betfair odds are up to 20% better than your everyday bookmakers.
Thirdly, and most uniquely, you can bet on something not to happen! Have you ever been in the position, say, when you are looking at a horse race, and although you are finding it hard to pick a winner, there is a horse you just know will not win the race. Or maybe even look at a big football match and decide that there is no way a certain team will win the game?
In days gone by there would be no way to bet on these outcomes, but with Betfair you are now able to bet on something NOT to happen. This is known as laying.
Instead of putting down money on something to win, with Betfair you are able to accept a stake from someone with a differing opinion to you, and keep the money if the selection loses, losing your own stake only if the horse/team/player in question actually wins. How attractive does that sound to the unlucky gambler who never seems to be able to pick a winner!
The way Betfair Operates
As mentioned earlier, you will never get your account limited or suspended for being too successful on Betfair. This is because Betfair aren’t reliant on you losing money in order to make their business profitable.
Betfair charge a commission of between 1-5% on winning bets (% based on how much you bet), basically meaning you are free to win as much as you want without fear of closure. The better odds you receive on Betfair more than make up for the small commission fee on winning bets.
There is, however, another way to bet, that guarantees you a profit regardless of result…
Trading On Betfair
Betfair is not a bookmaker. Consider it more as the trading floor on the stock exchange. As we should know already, a stock exchange provides the facility to buy and sell stocks and shares with the view to making a profit on your trades.
What many people do not realise is that Betfair is not a bookmaker; it is a marketplace and is more similar to a stock exchange than a bookmaker.
When betting/trading on Betfair you are not betting against Betfair, you bet against other real people like yourself. All the money available in any one betting event/sport on the exchange is provided solely by it’s users…the people. This is called liquidity. You don’t know who these people are, just as they don’t know who you are. All you will see within any market are the odds on offer and how much is available to back/lay (buy/sell).
When you ‘back’ a selection on Betfair you are selling your bet to a ‘layer
When you ‘lay’ a selection on Betfair you are buying a bet from the ‘backer’
Much like a stock exchange, odds will move to and fro in accordance with the weight of money. If more people want to buy then the odds will shorten. If more people want to sell, the odds will increase.
This is where trading comes to fruition. If you manage to back at a high price and are able to sell at a lower price, you are in the position to make a trade and guarantee yourself a profit regardless of the result of the event you are betting on.
By the same token, if you lay at a low price and become able to back at a high price you are able to do exactly the same.
By trading instead of betting, you can achieve a profitable position where you are guaranteed to benefit financially regardless of the result of your chosen sport. This can even be acheived before the event has started if there is a big swing in the markets.
Getting Started with Betfair
To get started with Betfair you will need to open an account with them. The process is much the same as opening any other bookmaker account and will take no longer than 5 minutes of entering your personal information securely.
As a welcome bonus to you, you can choose between a risk free £20 bet, or up to £1000 cashback after your first month of using Betfair (cashback dependant on amount wagered).
Get on the road to steady and guaranteed profits by trading the markets on Betfair!