Scalping On Betfair
Scalping is short term trading. It is a form of sports arbitrage
betting. A scalping trader looks to make lots of small profits, which in
time add up. Scalping relies on lots of active participants in the
Scalping on Betfair on UK horse racing is the best place for this
type of sports arbitrage betting. This is because you have lots of
liquidity in these markets, in particular just before the start of the
race, because you get a surge of money coming into the market.
The concept is simple, if you back a price you must lay at a higher
price, or, if you lay a price you must back a lower price to make a
profit. Whatever happens your profit is guaranteed and is equal to the
difference or spread between the back and lay price.
The Betfair betting exchange is an ideal place to trade in this way, in
this article weÃ¢â‚¬â„¢ll look at the basics of scalping on Betfair and how
Scalping on Betfair Basics
You can scalp any betting market. However, you must have enough people
participating in the market or enough liquidity.
The UK horse racing
market on Betfair lends its self to scalping because of the amount of
participants and volume of money entering the market. When we talk about
scalping here we will be referring to UK horse racing for the reasons
Scalping on Betfair involves pre race scalping rather than trading
prices when a horse race is in play. The pre race markets is not
susceptible to out side events like in play markets, reducing the risk,
scalping a pre race market involves popping in an out of the market
taking quick small profits.
These are called scratch trades. With the pre race market there is no
danger that the price is going to shot off in one direction, for
example, a rider falls of the horse.
Scalping this pre race market on Betfair is good because the race hasn't
actually started. There are no physical events happening that are moving
the market. But, the price still moves around enough to make money. This
movement in the price is really just noise.
Scalping this market with larger stakes is less risky because it is not
too volatile. Scalping on Betfair with larger stakes is where your
profits can really pick up.
The Betfair betting exchange is good for scalping because you can back
and lay the favourite horse quickly.
To be successful you expect to take profits and loses of about the same
size. The frequency of profits should outweigh your losses. You don't
want the losses to get out of hand other wise you are on an up hill
struggle to regain them.
The worst thing you can do is hang onto a bet because it's losing and
let it play out as the race commences. This is not the way and is simply
How to scalp?
The best form of scalping is to perform scratch trades. Scratch trades
are a form of scalping when you are in and out of the market very
quickly. This form of scalping is all about money management and
involves cutting loses from your scalping trades quickly.
Some people don't like scratch trades because they can see the price
moving in the right direction after they have exiting and get annoyed
about missing out on a profit. But, a scratch trade will get you out if
the prices moves in the wrong direction. It's psychology really, a
missed profit has a different effect on some people than a saved loss.
Scratching trades may end up costing you a few profits but it will also
save you lots of losses. Many people dwell on the times when they
scratch and, as soon as they did so, the trade went in the right
direction and they could have made a few ticks profit if only they
hadnt scratched so quickly.
Betfair.com opened up their website to software programmers allowing
third party providers to offer tools to aid Betfair traders. There are a
range of software providers with systems that make scalping a lot
For a full description of scalping and how to use free software to start
scalping on Betfair visit Lets Compare Bets.com.