Horseracing trading and Betfair

Before to present to you trading strategy let see how trading works, for which of you are novice traders:

Mainly, the trading is not the same like on a stock market, here not exist the buy and sell's offers. You like a punter looking to back some offer at a high price and lay it at a low price.

So let show you a little example: you back a horse at 4.4 with 100 pounds and the price moves in 4.0 at which point you lay, again with 100 pounds.

If the horse win you would earn 340 pounds from placing back bet, but you owe out 300 pounds for the lay. Or in other words, you earn is forty pounds if your horse win and nothing if it lose.

Rarely traders settle for the "free bet" option and they will "green up" the book instead. And then the price move, in that case, the trader will lay with 110 pounds instead of 100 pounds.

In this example the trader will win 10 pounds no matter who of the horses wins. This is known like a green book. I am sure that you understand that the green book is a thing of beauty, but it is not so simple as it like. If the price moves against you, you will endure a loss and then you will be in a red book, which is not so pretty.

We show you the basics. The whole theory. But there is a tricky part of betting trading and it is to trying to take advantage of the movements in the price. But when you will decide to back or lay?

To be a good scalp trader you don't need to have guessed the market. Not two traders that did the prediction of the prices at one way. Some of the professionals really can be predicting the price, but for those of you which are not such experts, we tell that the trick is to take a position by leaving a back or lay order a little bit away for the current price.

And here is the essential part: you must look for a spot where there is very few amount of money waiting already. To let you understand well let look at a ladder interface on Betting Assistant.

When turn on in a ladder interface, you will see the prices in a vertical view and it's able to you, to see the market in much more detail.

So, we noticed that there was only 51 pounds in the queue, which waiting to back the horse at 3.15, so we put in an order at that price for 100 pounds.

At this case it's only matter of playing the waiting game. We are hoping that the price will rise to 3.10 at which point we get ready to click on the pink box and lay. But if the price doesn't rise, we can simply cancel the placing order and there is no damage. This is the very good think about this kind of trading.

Of course possibility to never price will move back as soon as we have layed always exist. But in that case you will be able to get out very quickly and without lose. You must never to let the bet stand and hope for the best.