Betfair Trading


Betfair Trading & Odds Brokering

Betfair Trading & Odds Brokering On The Exchanges

Betfair Trading & Odds Brokering

 Betfair Trading Exchanges & Odds Brokering Explained

Betfair Trading can be a great way to profit from Racing Tips Today Horse Racing Tips, as around 70% of our Betting Tips are available at bigger guaranteed odds with many of the bookmaking firms on the evening prior to the next days racing.

Some selections are available at considerably bigger odds & it is these selections that we like to focus on, as they can be absolute goldmines for the Betfair Trader.

 

Trading Our Horse Racing Tips On The Betfair Exchange

Trading our Horse Racing Tips  on the betfair exchange works well for us when a particular horses odds have shortened considerably from the back bet odds that we obtained with our chosen bookmaker on the evening before the particular race.

I only trade our selections when the odds have shortened considerably. By having multiple betting accounts with several different bookmakers enables me to shop around online to obtain the best possible guaranteed odds about our selection on the evening before the particular race. We have secured the best guaranteed odds.

The reason why it is so important to place the back bet with a bookmaker & not on the Betfair exchange the evening before a race is that there is very very little liquidity in the betting exchange markets on the evening prior to the next days racing. Liquidity is basically the volume of money available in the betting markets. Nearing race time the liquidity increases as the volume of money is much greater.

By taking the bookmakers “Guaranteed Odds” means that if the horse starts at shorter odds then our bet is guaranteed at the odds we have obtained, but if the horse starts at bigger odds then we are paid out at the bigger odds should the horse win.

As mentioned above i am only interested in trading when the odds about a horse have shortened considerably, for example – from 7/1 into 4/1, from 9/2 into 5/2, from 7/2 into 9/4, from 11/4 into 7/4, from 9/4 into 6/4 or maybe from 2/1 into even money etc etc.


Trading Into A No Lose Situation & Creating A Free Bet

Below are examples on trading into no lose situations, using our betting tips & creating Free Bets from when the betting odds have shortened considerably.


Betfair Trading – Example 1

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 9/2
£10.00 staked with the bookmaker to win at guaranteed odds of 9/2

Should the horse win the return would be £55.00 which would mean a profit of £45.00

On the day of the race, nearing race time we notice that the odds about this horse have shortened considerably & we have an opportunity to lay the same horse at odds of 3.5 (5/2) on the betfair exchange.

We place a lay bet of £10.00 at 3.5 (5/2) on the betfair exchange, creating a liability of £25.00

Which means if the horse wins, then we would be liable for £25.00, in other words we would lose £25.00

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £55.00 minus our stake of £10.00  which leaves a £45.00 profit, but we have a liability of £25.00 on betfair, so our total profit from the bet would be £20.00

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £20.00

We traded into a no lose situation regardless of the result.


Here is a Youtube Video that i came across by Betfair which explains the Free Bet Technique reasonably well for newbies, in the video the guy is trading on football, however the concept is the same.

As explained above we place our back bets with a bookmaker on the evening before racing & not with betfair, also in the second half of this video the guy explains the Green Book Technique, we do not incorporate the Green Book when trading our selections, we keep things nice & simple, we place our back bets with bookmakers on the evening before the race & our lay bets on betfair nearing race time if the horses odds have shortened considerably.



Here are some more Betfair Trading Examples

Betfair Trading – Example 2

This Example is the same as Example 1 except we use different odds to help newbies understand the concept a little better.

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 11/4
£10.00 staked with the bookmaker to win at guaranteed odds of 11/4

Should the horse win the return would be £37.50 which would mean a profit of £27.50

On the day of the race, nearing race time we notice that the odds about this horse have shortened considerably & we have an opportunity to lay the same horse at odds of 2.5 (6/4) on the betfair exchange.

We place a lay bet of £10.00 at 2.5 (6/4) on the betfair exchange, creating a liability of £15.00

Which means if the horse wins, then we would be liable for £15.00, in other words we would lose £15.00

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £37.50 minus our stake of £10.00 which leaves a £27.50 profit, but we have a liability of £15.00 on betfair, so our total profit from the bet would be £12.50

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £12.50

We traded into a no lose situation regardless of the result.


Betfair Trading – Example 3

This Example is the same as Examples 1 & 2 except this time we are trading at bigger odds.

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 8/1
£10.00 staked with the bookmaker to win at guaranteed odds of 8/1

Should the horse win the return would be £90.00 which would mean a profit of £80.00

On the day of the race, nearing race time we notice that the odds about this horse have shortened considerably & we have an opportunity to lay the same horse at odds of 6.00 (5/1) on the betfair exchange.

We place a lay bet of £10.00 at 6.00 (5/1) on the betfair exchange, creating a liability of £50.00

Which means if the horse wins, then we would be liable for £50.00, in other words we would lose £50.00

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £90.00 minus our stake of £10.00 which leaves a £80.00 profit, but we have a liability of £50.00 on betfair, so our total profit from the bet would be £30.00

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £30.00

We traded into a no lose situation regardless of the result.


Betfair Trading – Example 4

This Example is the same as Examples 1, 2 & 3 except this time we are trading at very short odds.

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 7/4
£10.00 staked with the bookmaker to win at guaranteed odds of 7/4

Should the horse win the return would be £27.50 which would mean a profit of £17.50

On the day of the race, nearing race time we notice that the odds about this horse have shortened considerably & we have an opportunity to lay the same horse at odds of 2.25 (5/4) on the betfair exchange.

We place a lay bet of £10.00 at 2.25 (5/4) on the betfair exchange, creating a liability of £12.50

Which means if the horse wins, then we would be liable for £12.50, in other words we would lose £12.50

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £27.50 minus our stake of £10.00 which leaves a £17.50 profit, but we have a liability of £12.50 on betfair, so our total profit from the bet would be £5.00

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £5.00

We traded into a no lose situation regardless of the result.


Betfair Trading – Example 5

This Example is the same as Examples 1, 2, 3 & 4 except this time we are trading at odds that have shortened, but not by much.

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 5/1
£10.00 staked with the bookmaker to win at guaranteed odds of 5/1

Should the horse win the return would be £60.00 which would mean a profit of £50.00

On the day of the race, nearing race time we notice that the odds about this horse have shortened a little & we have an opportunity to lay the same horse at odds of 5.00 (4/1) on the betfair exchange.

We place a lay bet of £10.00 at 5.00 (4/1) on the betfair exchange, creating a liability of £40.00

Which means if the horse wins, then we would be liable for £40.00, in other words we would lose £40.00

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £60.00 minus our stake of £10.00 which leaves a £50.00 profit, but we have a liability of £40.00 on betfair, so our total profit from the bet would be £10.00

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £10.00

We traded into a no lose situation regardless of the result.


Betfair Trading – Example 6

This Example is the same as Examples 1, 2, 3, 4 & 5 except this time we are trading at very short odds that have shortened, but not by much.

Overall stake for this example is £20.00

Odds obtained with bookmaker on the evening before the race 5/4
£10.00 staked with the bookmaker to win at guaranteed odds of 5/4

Should the horse win the return would be £22.50 which would mean a profit of £12.50

On the day of the race, nearing race time we notice that the odds about this horse have shortened a little & we have an opportunity to lay the same horse at odds of 1.8 (4/5) on the betfair exchange.

We place a lay bet of £10.00 at 1.8 (4/5) on the betfair exchange, creating a liability of £8.00

Which means if the horse wins, then we would be liable for £8.00, in other words we would lose £8.00

If the horse loses, then we would win the other guys £10.00 plus our £10.00 stake would be returned, giving us a total return of £20.00 from betfair

This £20.00 return from betfair covers our overall stake on the bet of £20.00

So basically if the horse loses we do not lose, we end up with the same £20.00 that we started out with, effectively making our £10.00 win bet with the bookmaker a Free Bet

If the horse wins then our return from the bookmaker is £22.50 minus our stake of £10.00 which leaves a £12.50 profit, but we have a liability of £8.00 on betfair, so our total profit from the bet would be £4.50

What we have done here is created a Free Bet

Basically if the horse loses, then our overall stake of £20.00 is returned in full

If the horse wins, then we make a profit of £4.50

We traded into a no lose situation regardless of the result.


Non Runners can & will have a Negative Impact on your Trade PLEASE READ.

Another reason for making trades nearing race time is to ensure that it is not a non runner or non runners in the race that have forced the odds on our selection shorten, a non runner will create a Rule 4 situation which will have a negative impact on your back bet. The back bet made with the bookmaker on the evening prior to the race.

We need to be sure that it is market forces that have forced the odds about our selection to shorten & not because of a non runner or non runners, as with non runners there will usually be a Rule 4 Deduction on the back bet placed with the bookmaker.

Tattersalls Committee Rules On Betting - Rule 4

(C) Where a bet has been placed and a price taken on the day of the race and there is subsequently an official notification that a horse has been withdrawn or has been declared ‘not to have started’, the liability of a layer against any horse remaining in the race, win or place, will be reduced in accordance with the following scale depending on the odds current against the withdrawn horse at the time of such official notification: -

 

Odds of the withdrawn horse Scale of deduction (per £)
 1/9 or longer odds on   90 pence
 2/11 to 2/17   85 pence
 1/4 to 1/5   80 pence 
 3/10 to 2/7   75 pence 
 2/5 to 1/3  70 pence
 8/15 to 4/9   65 pence
 8/13 to 4/7   60 pence
 4/5 to 4/6  55 pence
 20/21 to 5/6   50 pence
 Evens to 6/5   45 pence 
 5/4 to 6/4  40 pence 
 8/5 to 7/4  35 pence 
 9/5 to 9/4   30 pence 
 12/5 to 3/1   25 pence
 16/5 to 4/1   20 pence 
 9/2 to 11/2  15 pence
 6/1 to 9/1   10 pence 
 10/1 to 14/1   5 pence 
 Over 14/1   No deduction 

In the case of two or more horses being withdrawn, the total reduction shall not exceed 90 pence in the pound.


I have probably gone into overkill with the above examples on Betfair Trading & i don’t wish to bore you with data, but my goal here was to make sure that trading newbies grasped the concept of trading our Betting Tips on the exchanges.


Being A Successful Betfair Trader

To be successful at Betfair Trading you have to know which way the market is going to go, just like on the stock exchange & commodities markets, this is not easy & nobody can get it right 100% of the time, buying low & selling high etc.

However, around 70% of our Horse Racing Tips start at shorter odds than were available with the bookmaking firms on the evening prior to the next days racing.

So if around 70% of selections shorten, then around 30% drift in the market or start at the same price that was available the evening before. This does not mean that all 30% that drifted in the market or remained at the same odds will all lose.

Some will go on to win at decent odds, so if you are betting on our selections then do not worry too much that a horses odds have not shortened & you cannot make a successful trade.

Our strike rate for winners averages around 24.0% & we do have long losing streaks & break even periods, but we also have our winning streaks & our profit margins have been very high with our ROI Return On Investment averaging around 45.0% which is massive.

So basically our Betting Tips have a dual purpose, you can either trade them on the exchanges or back them to win or do a bit of both as i do. There are many different ways in which you can trade on the betting exchanges but this method works very well with our selections.

Betfair Trading – Advice on Trading on the Betfair Exchanges

I do hope that you have found the above information interesting & useful, please do visit our About page. If you would like to join Racing Tips Today as a private member then please click on the red button below.


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Liability Table For Betfair Trading

Below is a Laying Liability Table which can also be used with the above trading strategy. Liabilities are set to a £10.00 lay stake for this example, £10.00 is a figure that can easily be adjusted & scaled to suit your personal lay bet stake.

Fractional Odds Decimal Odds Liability
1/5 1.20 £2.00
2/9 1.22 £2.20
1/4 1.25 £2.50
2/7 1.28 £2.80
3/10 1.30 £3.00
1/3 1.33 £3.30
7/20 1.35 £3.50
4/11 1.36 £3.60
2/5 1.40 £4.00
4/9 1.44 £4.40
9/20 1.45 £4.50
40/85 1.47 £4.70
1/2 1.50 £5.00
8/15 1.53 £5.30
4/7 1.57 £5.70
3/5 1.60 £6.00
8/13 1.62 £6.20
5/8 1.63 £6.30
4/6 1.66 £6.60
 7/10  1.70  £7.00
 8/11  1.72  £7.20
 4/5  1.80  £8.00
 5/6  1.83  £8.30
 9/10  1.90  £9.00
 10/11  1.91  £9.10
 20/21  1.95  £9.50
 1/1  2.00  £10.00
 21/20  2.05  £10.50
 11/10  2.10  £11.00
 6/5  2.20  £12.00
 5/4  2.25  £12.50
 13/10  2.30  £13.00
 11/8  2.38  £13.80
 7/5  2.40  £14.00
 6/4  2.50  £15.00
 8/5  2.60  £16.00
 13/8  2.63  £16.30
 17/10  2.70  £17.00
 7/4  2.75  £17.50
 9/5  2.80  £18.00
 15/8  2.88  £18.80
 19/10  2.90  £19.00
 2/1  3.00  £20.00
 21/10  3.10  £21.00
 85/40  3.13  £21.30
 11/5  3.20  £22.00
 9/4  3.25  £22.50
 23/10  3.30  £23.00
 95/40  3.38  £23.80
 12/5  3.40  £24.00
 5/2  3.50  £25.00
 13/5  3.60  £26.00
 11/4  3.75  £27.50
 14/5  3.80  £28.00
 3/1  4.00  £30.00
 16/5  4.20  £32.00
 10/3  4.33  £33.00
 7/2  4.50  £35.00
 18/5  4.60  £36.00
 4/1  5.00  £40.00
 9/2  5.50  £45.00
 5/1  6.00  £50.00
 11/2  6.50  £55.00
 6/1  7.00  £60.00
 13/2  7.50  £65.00
 7/1  8.00  £70.00
 15/2  8.50  £75.00
 8/1  9.00  £80.00
 17/2  9.50  £85.00
 9/1  10.00  £90.00
 10/1  11.00  £100.00
 11/1  12.00  £110.00
 12/1  13.00  £120.00
 13/1  14.00  £130.00
 14/1  15.00  £140.00
 15/1  16.00  £150.00
 16/1  17.00  £160.00
 17/1  18.00  £170.00
 18/1  19.00  £180.00
 19/1  20.00  £190.00
 20/1  21.00  £200.00
 21/1  22.00  £210.00
 22/1  23.00  £220.00
 23/1  24.00  £230.00
 24/1  25.00  £240.00
 25/1  26.00  £250.00
 26/1  27.00  £260.00
 27/1  28.00  £270.00
 28/1  29.00  £280.00
 29/1  30.00  £290.00
 30/1  31.00  £300.00
 31/1  32.00  £310.00
 32/1  33.00  £320.00
 33/1  34.00  £330.00
 40/1  41.00  £400.00
 50/1  51.00  £500.00

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