Sports Trading (Full Explanation): How It Works and How Much You Earn

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Sports Trading

Sport offers a large number of investment opportunities, such as matched betting and surebets , but another way to invest and earn in this sector is sports trading . 

In this article I will explain what it is, how it works, how much you can earn and a lot of other information to take the first steps and to start generating income with this strategy.

What is Sports Trading

Sports trading is not that different from classic financial trading. In fact, it consists in the purchase and sale of shares of a sporting event with the aim of generating a profit.

Also in this case it is a form of speculative investment (but not always) that is carried out on the so-called betting exchange platforms such as Betfair and Betflag.

Hence, the sports trader exchanges the odds of a sports bet with the various users of the betting exchange platform with the aim of obtaining a certain profit before the end of the sports event.

There are many online guides available that help you enter the world of sports trading, such as Imtrader.it , which offers free guides and strategies to start making money online with this technique in the right way.

Differences between Sports Trading and Betting

Sports bets are the classic bets that are made in any betting center. They are the most common and allow you to bet money on an event at a certain altitude in order to obtain a profit.

Instead, sports trading is based more on the model of classic financial trading. The trader, in fact, buys or sells a share and exploits the price fluctuations to obtain a profit margin.

Differences between Sports Trading and Matched Betting

Matched betting is a particular mathematical strategy which consists in placing opposite bets on the same sporting event, canceling the risk factor and earning by taking advantage of the bonuses offered by bookmakers.

In addition to the way of operating which is completely different , the difference between these two strategies, matched betting and sports trading, lies mainly in the earnings.

In fact, in sports trading the earnings have no limits but depend on a series of factors such as accuracy in the analysis, the ability to forecast, the commitment and knowledge of this strategy.

How Sports Trading Works

To understand how sports trading works it is useful to resume the functioning of classic trading in which the trader buys and sells financial instruments. 

In the case of sports trading, however, instead of buying and selling stocks and bonds, the trader buys and sells bets on sporting events . The peculiarity of sports trading is that it does not affect who wins or loses the event, but only the movement of the price. 

The main goal of a stock trader is to buy low and sell high, and the principle of sports trading is exactly the same.

In Italy it is possible to trade on football, tennis, boxing, horse racing, basketball and formula 1, while abroad there are platforms that also deal with other types of sports.

Tip and Bank: What It Means

As you approach sports trading you will be dealing with terms such as betting and banking .

The stake is the classic bet that anyone has made at least once in their life. It involves betting that a certain event will occur. If you bet on Juventus victory, you will only win the bet if Juventus wins the match.

The word bank derives from the bank, that is the one who accepts the bet made by others. 

Consequently, the lay is a bet that a certain event will not occur . 

Example

Match: Milan-Inter

Quote on the exchange:

Milan 2.00
Draw 3.50
Inter 4.00

I think Milan will not be able to win against Inter, so I decide to bank it. In this way, whether it is a draw or an Inter team win, I will have won.

Going to bank an event, as a trader I behave exactly like a bookmaker : I make a certain amount of money available and offer a share (in my opinion, Milan won’t win this match!)

But let’s move on to the numbers.

By choosing, for example, an amount of € 10 euro at share 4 as the sum to be banked, the sum that I have to make available is € 30.

This is because on the other side there is another person who will be betting on Inter’s victory and therefore, if he wins the bet, he will have to earn € 30 net profit.

If I win (Milan loses), I have earned € 10, while if I lose (Milan wins) I will have to pay € 30 to the winner who bet against me.


Consequently, betting odds is the exact opposite of betting .

Banking therefore means taking the place of the dealer, or the bookmaker, who wins if the result bet by the bettors is not achieved.

Sports Trading Example

In sports trading, the possibility of banking and betting during the game is exploited in order to generate a certain profit. 

Quite simply, sports trading is all about placing a bet in a moment, waiting for our prediction to come up / true and against betting in order to generate a profit.

 

Sports Trading Techniques

There are several techniques that can be used in sports trading. One of the strategies that can be implemented to make money with this technique is common to financial trading: scalping .

Scalping is all about making trades quickly while trying to make small profits consistently. In this case, therefore, you bet / bank at a quota and hedge as soon as it fluctuates to generate a minimum but constant profit. In addition, by using multiple sites that offer different quotes you can do a sort of arbitrage by creating a profit of a few euros for each bet. 

Another rather famous method is the balance method , which always derives from our beliefs. Let’s take a football match where you think that the outcome is very uncertain and that there is a 33% chance that one of the two teams will win, 33% that the other will win and 34% that they will draw. In this case you just need to bank one of the three results: in this way you have a 67% chance of winning. 

A prudent strategy is the prematch one . In this way you play on the news that influences the odds before the start of the game, with the alternative, in case you are unable to conclude before the start of the match, to be able to make up again during the game. This technique therefore allows you to earn on fluctuations in odds before a sporting event begins.

On Imtrader.it the techniques are explained in an accurate way with practical examples that allow you to understand how they work.

How Much You Invest and How Much You Earn with Sports Trading

The sports sector and, above all, sports betting, can move a lot of capital in a short time and generate large amounts of income in the few moments in which the game takes place for bettors, but also for sports traders. 

However, this also depends on the importance of the match and the possibility of having different evaluations in the different scenarios that can be outlined during the match. 

In general, however, we can say that the more the match is fought, full of emotions and action, the more it becomes a source of profit possibilities (and loss!). 

In this type of investment, the return depends, as in any other situation, on how much you have invested and on your risk appetite. 

One of the main advantages of this activity is that in a short time you can know what the result of your choices is. 

So is sports trading profitable? The answer is yes, but how profitable it can be is up to you. In fact, like any form of investment, sports trading also requires work , time and perseverance in learning the techniques. It is a skill that must be cultivated. 

The profit obviously depends on the bets and the money you want to make available. Normally an average profit of 0.5-1% is considered for each successful transaction.

Always consider that there are no safe operations , indeed, the risk is high if there is not an accurate study for each game bet.

I tell you right now that there is no quick way to make consistent profits, but you need to study the markets inside and out. 

Another question you may have asked yourself is: how much capital do I need to get started ? I want to reassure you because you don’t need to invest large capital to get started.

Plus, most sports trading software features a training mode setting, which allows you to waste nothing but your time while learning. Beyond the training mode, it is advisable to start with small amounts. Then the small capital invested will start to grow rapidly.

What are the best software to use

Over time, software dedicated to betting exchanges has grown, and some have become more popular than others. 

For sports trading it is not mandatory to use a software, but compared to a website like Betfair’s there are many advantages to which you have access. First of all is the possibility of automating the bets and bankings, there is also the possibility of using advanced charts, as well as being able to see the odds in real time .

Using a dedicated software, the techniques require just one click, without long procedures, in fact it is often possible to automate the various strategies and simply select the games to apply them to. 

In addition, using software ensures greater speed to carry out operations and monitor changes in information. 

One of the most used sports trading software in Italy is Fairbot , accompanied by Traderline . 

The first, Fairbot , is a very fast platform that allows you to trade football in a fast and intuitive way. Fairbot is one of the first Betting Exchange platforms. You can make a free trial of the software, after which the only subscription formula contemplated is the annual solution at a cost of $ 99.

Traderline , on the other hand, is considered the first software for the Italian betfair exchange , highly appreciated among Betfair traders who mainly appreciate its ease of use and its advanced trading tools. However, Traderline has quite high costs, with a monthly platform fee of € 9.99 and if you buy 1 year of subscription the cost is reduced to € 69.99.

The Advantages of Sports Trading 

After understanding how sports trading works it is not difficult to understand what are the advantages of this type of investment. First of all, it is interesting to start investing with reduced capital , which can range from € 200 to € 500. 

One of the most important benefits of sports trading is the absence of trading fees on orders placed. In fact, there is generally a single commission equal to 4.5% but applied only on net profits realized, while there is no commission on any losses or transactions in par.

Furthermore, since it is sports betting, the winnings are already taxed!

In addition, knowing the result and outcome of bets is very easy precisely because they are based on sporting events that can be seen both with subscriptions for sports platforms, and online by searching for the match.

The Risks of Sports Trading

Like any type of investment, sports trading also presents risks, especially since it is a highly speculative form of investment.

The most important risk is to apply trading techniques without having thoroughly studied the game to which we want to apply it. Another risk is certainly that of betting a large part of the capital and then losing it in a single game.

For this reason I reiterate that to start with sports trading it is essential to have good knowledge not only of the sport in which you intend to invest but also on the mechanisms of trading .

It is equally important to know how to read and interpret the betting exchange graphs in order to set the most suitable strategy.

How to get started

The first thing to do before jumping into the betting exchange is to gather as much information as possible and read all the main trading terms and strategies. If you already have a basic understanding of sports betting or stock trading, sports trading will be even easier to understand.

Another tip is to observe some betting exchanges and observe how the markets move before and during the events. Some of the most popular sports for trading are football, tennis, cricket, and horse racing. When you feel ready to try trading, be sure to start small.

Furthermore, to become a sports trader you need to have steady nerves and not let yourself be discouraged by “bad” days. Losing is never cool , but you have to accept that it’s part of the game. It may be helpful to keep a journal to record your experience and the strategies you have adopted to track your achievements.

Conclusions

Sports trading is a form of speculative investment but it can also lead to very interesting gains, especially if you choose the most suitable strategies.

For newbies and beginners of the betting exchange, using a software is not essential, but it becomes useful when you start to do more operations and you need more responsiveness than a website. 

In short, it is the perfect mix between online trading and a passion for sport. If the article was helpful to you, please leave a reaction below!