The basics of Sports Trading

Trading on sport uses the same concepts as trading on the stock exchange or in real estate.  Buy low and sell high = making profit.  In sports trading, instead of the terms “buy” and “sell” we refer to the terms “back” and “lay”.

To “back” a team means that you are betting on them to win.  It’s the most traditional bet format used at most sports betting agencies around the world.  If you “lay” a team, then it’s the opposite as you are betting on them to lose.  Betfair is the most popular sports betting exchange that allows punters to both back and lay.

So in order to make money, without taking a risk on the actual result, all you need to do is back high and lay low.  It doesn’t matter whether you back or lay first, and it doesn’t matter whether the market is rising or falling.  Much like the stock markets, as long as the price is moving, there’s opportunity to make money.

Let’s take a look at an example:

You back the horse "Puffing Billy" to win in Race 4 at Flemington.  You put a $100 back bet on ten minutes before the start of the race at odds of 6.00.  Your position is:

Puffing Billy wins – You win $500
Puffing Billy loses – You lose $100

Suddenly there’s a late surge of money for your horse and its odds shorten to 4.00.  You can now lay this horse and reduce, or even remove, your liability.  You decide to lay the horse for the full $100.  Your position is now:

Puffing Billy wins – You win $200 (+$500 from the back bet, -$300 from the lay bet)
Puffing Billy loses – You break even  (-$100 from the back bet, +$100 from the lay bet)

When you lay the $100 at 4.00, your liability is $300, and combined with the $500 you made from the back bet, your overall position is +$200 if the horse wins.  So you’re in a strong position and effectively “freerolling” Puffing Billy to win.  But what if it doesn’t win?  You don’t lose anything, but you don’t win anything either.  Wouldn’t it be nice to lock in a profit regardless of the result?

With this position, you can achieve what is referred to as a “green book” (or hedging) and that is when you guarantee a win regardless of which horse wins.  To do this, we could’ve laid for $150 instead of $100.  Here’s how that changes the numbers:

Puffing Billy wins – You win $50 (+$500 from the back bet, -$450 from the lay bet)
Puffing Billy loses – You win $50 (-$100 from the back bet, +$150 from the lay bet)

Now we win $50 regardless of the result!  That’s the ideal position to be in, and should be a goal of any trader to achieve a green book.  Remember that this can be achieved on any sport – horse racing, cricket, football, golf, tennis...it doesn’t matter.  It’s the same technique.  You can also do this both pre-game or in-play.

In order to work out how much to lay to lock in a profit you can use software or a calculator such as http://www.oddschecker.com/betting-tools/hedging-calculator.html.

There are many trading strategies that can be employed in order to achieve a green book and we’ll discuss these in more detail in future articles.

TIPS

eSports Betting Tips: CS:GO E-League Premier 2018

$1,000,000 will be on the line when eight of the best CS:GO teams in the world face off in the E-League Premier 2018 starting this weekend! We break down the tournament and give our betting tips here read more

2018 Wimbledon Men's Final Preview & Betting Tip

Novak Djokovic and Kevin Anderson will clash in the 2018 Wimbledon Men's Final. After both came away victorious from epic Semi-Final battles, the two will come together on Sunday night to crown a Wimbledon champion. Here's our preview! read more

Sha Tin Best Bets for Sunday, July 15th

The Hong Kong Jockey's Championship comes down to the final day of the season, with Zac Purton taking in a four-win lead over Joao Moreira! Every one of the 11 races on the day will be a fascinating battle and we've picked out four best bets on the card along the way! read more

2018 Wimbledon Women's Final Preview & Betting Tip

Ace is back with his preview and betting tips for the 2018 Wimbledon Women's Final that will see Serena Williams take on Angelique Kerber. read more

ARTICLES

Best Australian Sports Betting Sites

The best Australian sports betting sites insures safe and successful online betting for punters as well as offering the best betting options in Australia. read more


How Does Spread Betting Work?

Spread betting has finally made it's way to Australia through new betting agency Pointsbet, we give you a quick guide to spread betting here. read more


How to Bet on eSports in Australia

With the phenomenon of eSports finally starting to take off in Australia, we thought we'd give you a quick 'how to' guide on betting on eSports in Australia! read more


Tips for Taking Advantage of NBA Player Performance Betting

Most Australian bookmakers now offer player prop markets in the NBA, you can take advantage of a few factors that we take a closer look at in our Tips for NBA Player Performance Betting read more


BLOGS

2018-19 WBBL04 Fixture Announced!

Some big changes will take place in the 4th edition of the Women's Big Bash League set to kick off in December! See more info and the full fixture for WBBL04 here! read more


2018 Brownlow Vote Predictions Round 17

Round 17 of the 2018 AFL season saw plenty of upsets which bodes well for a few Brownlow contenders from the lower teams to grab some votes. Here's our Brownlow vote predictions for Round 17! read more


2018 Brownlow Medal Predictions & Leaderboard

2018 Brownlow Medal predictions are here as our AFL tipping experts offer round-by-round Brownlow votes, rolling leaderboard and vote trackers for the 2018 AFL season. read more


2018 Brownlow Vote Predictions Round 16

Round 16 of the 2018 AFL season is done and dusted, and once again the Brownlow Medal leaderboard has tightened at the top! Check out our Brownlow vote predictions for Round 16 here! read more


Unibet Streak