Betting Exchanges

[Ray Of Light]

Does anyone here do any sports trading via Betting Exchanges? Sports trading is basically, backing and lay betting on a sports event whilst it is currently running, so that you can lock in profit. It is very similar to doing futures trading on the stock market.

Its been big business for the past six years or so, in the gambling communities of the UK right now, and I have just started to (seriously) dabble in it. I am trying (and tweaking) a few techniques and strategies with some surprisingly consistant success... but its still early days. /images/graemlins/grin.gif

I would like to hear of other peoples experiences/opinions/ideas about this type of sports betting technique...

[SonnyJay]

I have done a little bit on Tradesports.

My big warning: know the fee/commission system inside and out before trading, especially if you are arbing (locking in profit). A trade commission here and clearing fee there, and your small profit can become a loss.

-SonnyJay

[Ray Of Light]

[ QUOTE ]
I have done a little bit on Tradesports.

My big warning: know the fee/commission system inside and out before trading, especially if you are arbing (locking in profit). A trade commission here and clearing fee there, and your small profit can become a loss.

-SonnyJay

[/ QUOTE ]

I only really take commission into account, if I am arbing off a position via a bookie... but if you are both backing and laying the event at the self same betting exchange, they calculate it for you before hand (I am thinking of Betfair in regards to this).

Actually, the way I trade doesn't rely upon my finding arbs at all. I am, instead, trading on market movement. If you have a strategy that allows you to predict which way the market odds will move, then you can quickly buy and sell for small, yet regular profits.

[SonnyJay]

[ QUOTE ]
[ QUOTE ]
I have done a little bit on Tradesports.

My big warning: know the fee/commission system inside and out before trading, especially if you are arbing (locking in profit). A trade commission here and clearing fee there, and your small profit can become a loss.

-SonnyJay

[/ QUOTE ]

I only really take commission into account, if I am arbing off a position via a bookie... but if you are both backing and laying the event at the self same betting exchange, they calculate it for you before hand (I am thinking of Betfair in regards to this).

Actually, the way I trade doesn't rely upon my finding arbs at all. I am, instead, trading on market movement. If you have a strategy that allows you to predict which way the market odds will move, then you can quickly buy and sell for small, yet regular profits.

[/ QUOTE ]

Just make sure that there aren't additional fees at certain times or a varying commission scale. For example, I know Tradesports charges extra to trade in-game (or at least they used to). Make sure it's in your calculations.

-SonnyJay

[TheOffice]

Betfair is hands down No.1 for exchanges/trading. While trading inside of a market, there is no varying commission scale.

They have even employed in-running AH markets recently, but I suspect betting fish are just too stupid to figure out spreads and the meaning of +/-0.5 so there's little action yet while commission is 1% as compared to 5% (not including rebates). I hope for trading volumes in the AH live market to go up, therefore increasing everyones potential profit except Betfair's... Same goes for total goals market. Why in the world would you want to bet on o/u 2.5 with 5% commission instead of using your brain and taking the 1% offer? Fish don't have a brain must be the conclusion?

I've started to really dig into the trading/arbing stuff during World Cup 2006 when I completely quit poker for that time and bet all day long. Once you know some mechanisms and can somewhat predict movement/spot value, then it's not tough to make profits. However bankroll limitations as well as too little market volume can become quite annoying (which was not the case during world cup).

In short: You need healthy amounts of money at your disposal and volatile as well as busy markets to get your required volume in. I could easily do this for a living with my (even limited) knowledge and bankroll during times like WC, but even on the biggest of all betting exchanges there's not enough liquidity enough times.

And, of course, there are many, many other ways to harvest cash of those markets (I've seen some pretty, pretty, pretty impressive numbers by people), but that requires technique I'm obviously not aware of.

[ensign_lee]

Yeah. Bet Exchanges are the [censored].

Too bad BetFair is closed to US citizens.

Matchbook is pretty badass though, especially for scalpers. If you have bets on both sides of an event, they won't charge you vig on both sides, only the side you get paid on.

To make this clearer, let's say you were able to scalp a game.

If Team A won, you'd win $20
If Team B won, you'd win $14.

You had to have a total betting volume of like $500 to get to this point on both sides at different odds.

Instead of paying 2% of $500, you'd pay either 2% of $20 or of $14.