- Written by Gianluca Landi
The term Sports Trading means trading on the odds of any sporting event that has become possible through the Betting Exchange platforms. Sports trading is the new revolution of online trading, that was born in 2000 thanks to Betfair, which has allowed the integration of two realities that until then were deeply different and at the antipodes: betting and financial trading.
In this section of the website, we explain all the aspects and the main terms of this new form of online trading, that revolutionizes the classic world of betting and the traditional cards, that are obviously losers, as they go against the calculation of probability and statistics, and they don’t have valid tools to "defend ourselves" during the live.
What is sports trading?
Sports trading is the exchange of bets through a betting exchange platform between two users who perform transactions of opposite sign, and, consequently, allow the matching of the bet itself. Since there is no longer the bookmaker as a bench, the matching of the odds is possible only if you find a player who backs and a player who lays with the same stake and the same odd, otherwise there’s only the partial matching or nothing happens.
The bets of a sports market are exchanged by using the movement of the pre-match odds or above all during the event itself, called 'live'. Odds are not static and immutable, but they move according to the law of supply and demand, allowing them to eventually make a profit.
In sports trading there isn’t the figure of the bookmaker, whose interests are opposite to yours: the bookmaker's gain is the loss of the customer! On the contrary, in betting exchange a player is in contact with another player who has opposite visions and they are in the same conditions of operation without a position of clear advantage. If you have the skills, you can get to do this your job. Nothing is against you except yourself, your abilities and your skills.
Compared to financial trading on shares, futures, forex etc., this new type of trading is simpler and more immediate, because the variables involved are not so many, but only one for football trading: the goal! you don’t have to fight against graphics or news, but only against a variable: much simpler isn’t it?
It is necessary to know the functioning and the logic behind the formation of the odds during the live, before you can earn.
How it works
Trading on odds is possible thanks to the unique and distinctive peculiarity of the betting exchange: to lay the odd. Lay an odd is the opposite function of to back and it presupposes a different responsibility: by laying an odd you can lose more than the stake you put in.
While you do sports trading, you back or you lay an odd and then you usually leave the position in profit or in loss during the live depending on the performance of the match.
Closing a position in profit or loss during the match itself means trading, not betting!
In the image below you can see an example of sports trading operations:
- We studied the statistics before the match Lazio – Milan and we decided to lay over 2.5 with stake 150£ (responsibility 183£) at 2.22
- After 20 minutes we decided to exit from the trader doing green up from the vertical ladder with a profit of 20.09£.
You can notice that the profit of 20.09£ done with the green up is the same both for the result of under 2.5 and for the result of over 2.5: a certain and mathematical gain has been obtained whatever the final result is by closing the bet at the 20 minute!
For us the match closed a lot earlier and the result doesn’t affect our final result.
On the right side you can see that the lay is defined as ‘bet against the result’ and you obtain a profit if the opposite succeeds, that is, if the final result is under 2.5.
Difference between Trading and Bets
Sports trading is opposite compared to the classic bets and everyone must remember this! The classic bettor doesn’t study or analyses the match, he operates on the basis of his football faith or belief, for the sake of betting and to obtain an adrenaline rush.
The bet in this case is carried on until the end of the match without doing anything else, or rather, crossing the fingers.
The sport trader analyses the match using statistics and professional instruments, and during the match he changes or adjusts his position looking at the progress of the event itself.
The sport trader interacts with the market by closing the trade with the green up if he’s on the right side, or with the red up by limiting the losses.
If you use this method, you have a dynamic interaction with the market (not a static interaction as the classic bets). The sport trader becomes a direct part with the exchange system.
The sport Trader
The sport trader is a professional of sports trading; he’s the one who uses sport trading as a job by using a method imposed, that allows him to make a profit, which is the purpose of his activity. The sport trader is not a bettor or a player; he is a professional that uses professional tools to analyze matches and to reduce the risk of each operation.
The use of money management is fundamental; it allows you to divide the available capital for each trade in order to minimize the risk and to make "work" the statistics to your advantage. The statistics are the number one ally, but it is essential to give the time to express their numbers: the numbers are on our side!
If you want to do sport trading, you must open an account with a company that owns and operates a betting exchange platform with sufficient liquidity to operate above all during the live. World platforms are different, but the only one that guarantees a good liquidity on all the main live markets is absolutely Betfair, the world leader. Other companies have very similar liquidity between them pre-match but not live.
Betfair has also the possibility to provide his ‘api’ and so, many trading softwires that allow you to place bets in a simple and automatic way born.
The main world platforms are:
Opening an account is very simple and you can find all the information by clicking on the relative links or on the banners on the site. They allow you to take advantage of favorable conditions.
The best strategies
The action plan (and therefore a methodology) is essential for operating in sports trading in a serious way. There are many strategies and they are characterized by strengths and disadvantages that you must weight according to your degree of risk and the type of operation that you want to do.
The symbolic method of sporting trading is scalping: to back and lay continuously, exploiting the temporal decadence of the odds of the current result during the live match. In order to do scalping, it is necessary to fully understand the operation and know all the technical features that allow you to trade with the minimum delay.
At the begin you can put into practice the simplest and well-known strategies like laying the draw and laying over 2.5 (you have seen an example in the previous section).
Why to use a trading software
To do trading using the website of the owner of the chosen exchange platform is unthinkable: the site is too slow, the odd update is not immediate and the order entry must be done with several mouse clicks.
The sport trader loses too much time, that affects the final profit he can make and the risk he runs for each trade.
The sports trading software with vertical ladder allows you to back or to lay with just one mouse click and the odds are updated continuously with the minimum delay possible. The order panel can be removed: it allows you not to do a passage during the operation. Who wants to trade in a professional way must choose the software most convenient to him among the existing ones that you can find in the area dedicated on our site.
Those who do sports trading use the trading software and they don’t use the site. Those who put the usual positive screen, they do it probably for the trick of the button 'inspects' by us unveiled.
Minimum capital to start
If you want to begin to do sport trading you don’t need substantial capitals because odds exploit the temporal decadence over time and you can make unimaginable profits for any other form of investment.
For example: we’re at the 75’ minute of the second half and the result is 1-0, the odd of under 1.5 is around the odd 2.00. If you back with 100 euros of stake, in 15 minutes you obtain the 100% of the capital you invest if the match finishes with that score. Yes, the 100% in 15 minutes.
Which is the form of investment or speculation that allows you this percentage in such a limited amount of time? Only the sports trading…
If you start, a 500 - 1000 euros account is already sufficient to learn and to have significant profits, using, of course, a correct money management.
The book “Betting Exchange The revolution of Sport Trading” has been written by Gianluca Landi to talk about this new form of trading to the public and to explain that classic bets are an old-fashioned tool against the user. The book deals with the basics of functioning up to money management and strategies. It is a condensed text of information and concepts that must be read several times to fully understand what the author has written.
The next step of many readers was to "fall in love" with this subject and to do a sports trading course to learn the strategies and the dynamics during the live.
Those who want to go further and learn to do sports trading seriously and professionally from those who do this as a profession, can attend one of our sports trading courses held by Gianluca Landi through his sports trading academy both in the classroom and possibly online.
Sports trading is not a game or a pastime but it can\must become a profession if you do it in a serious way. As for all professions it is necessary to study and to apply to be able to become numbers 1.
Sports Trading Video
If you want to deepen the subject, Gianluca Landi has created a series of videos on sport trading on the dedicated youtube channel.