Trading..what it is about, and why.

The opportunities for traders both pre-event and in-play are extensive and continue to grow not just in the UK but around the world. 

You can back, lay and trade selections on betting exchanges Betfair, Betdaq, and Smarkets. 

The in-running opportunities on these betting exchange sites enable traders to increase profits or reduce losses whilst the event is in full swing.

On OLBG we have a comprehensive in running betting guide for both novice traders and those who consider themselves more experienced.  

The coverage of in running betting basics is especially helpful for those looking to become traders. 

What is Trading?

We define trading as backing a selection at a higher price and laying at a shorter price, or laying at a shorter price and backing at a higher price. 

You can place both back and lay bets on the same selection both pre-event and in running. 

1. Let's say you have been tipped a horse at 10/1, (11.0) you back it with £10 of your money. 

2. Word gets out the horse is a wonder horse and the horse is backed in running at 2/1(3.0)

3. You now lay the horse in running with £10 @ 2/1 (3.0). 

4. You have made your first successful trade and cannot lose if the horse loses. If the horse wins you make a profit.

5. You could increase your lay bet so you profit whatever the outcome. 

• £10 Back bet at 11.0 wins £100.
• Lay £36.67 @3.0 Liability £73.34.
• The lay bet wins £26.66. 
• Back bet wins £26.66.
• It now doesn't matter where the horse finishes, you make a profit of 26.66 whatever the result.

Trading On Sports

Trading on sporting events has become ever more popular since the introduction of Betfair in 2002 and now many define themselves as traders as opposed to gamblers. 

When they place a bet/trade they have already geared themselves up to get out of the trade when a profit is realised or a loss has occurred. 

It does take discipline to close an in-running trade that is winning and looks like finishing a winner, but the trader is in the game for the long haul and knows that by letting the bet run he is no longer a trader but a gambler. 

One day that trade he leaves to finish will come back to haunt, as a team equalises in the last minute or a horse falls at the final fence and a huge dent is made in his trading bank. 

The wise trader always closes his trade ahead of the final outcome. 

Trading Bots

Certain traders have bots set up to take the emotion out of a trade with the bot automatically making the trade when their parameters have been met. 

Now, these parameters will have been set by the trader in the first place but the closing trade will be done automatically. 

For example, you have backed Arsenal pre-match to beat Manchester United at 3.5, you arm the bot to lay Arsenal in running if the lay price of Arsenal hits 2.0 at any time during the 90 minutes. 

You do not need to spend time watching the boring Arsenal v Manchester United game and can get on with other things knowing the bot has your back! 

Trading Guidelines

If you wish to become a trader we suggest you read and learn as much as possible about the subject. There are a myriad of helpful articles on OLBG and on the individual betting exchange sites including many trading strategies. 

Always test a pre-match or in running trading strategy using a small amount of funds, and don't try and run before you can walk, that way you will keep more of your money in your pocket.