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Extra Place Offers. Greyhound Offers. Horse Racing Offers. Football Offers. Weekly Free Bet Club Offers. Matched Betting Calculator. Each Way Calculator. Sequential Lay Calculator. Early Payout Calculator. Dutching Calculator. Odds Converter. Bet Alchemist. Make money with this popular horse racing tipster service that focuses on each way value bets.
Betfair Trading. Maximise your matched betting profits with their fantastic range of matched betting tools. My Account Log out. Forums Search for:. Learn Matched Betting for Free Join 1,s who have already profited. Read the Complete Guide. Last post: Nick j. General Chit-Chat A forum for discussing absolutely anything. Last post: MartinMoon2. Last post: Chris. New Offers Spotted an offer that's not been blogged? Feel free to post it here This ensures that simultaneously backing or laying all selections in a market will not normally guarantee a profit.
Occasionally though especially in circumstances where odds are prone to change rapidly exceptions will arise where offers to back or lay all selections will be made that if simultaneously and cumulatively accepted at exactly the right stakes would permit an arbitrageur to guarantee a profit.
However, such phenomena tend to correct themselves very quickly and exchanges generally try to dissuade customers from attempting to take advantage of such circumstances. Even between exchanges, such large price differences are rare, brief and usually involve relatively small stakes. Fortunately for traders, almost all betting exchanges charge commission on net winnings only and charge no commission at all in the event of a net loss.
This suits the trader's high turnover, low profit strategy provided he bets exclusively with a single exchange. The trader therefore runs the risk of having a large unwanted bet on an event if he is unable to close his position before the event starts e. Traders and arbitrageurs are often credited with "seeding" markets with more competitive prices than would be present without them.
However, Betfair's imposition of a premium charge in September was seen by some as being directed at the most skilled traders, whom it is speculated trade for a loss very infrequently and thus would otherwise pay little in the way of commission. In response, rival exchanges have pledged not to introduce similar charges, perhaps in hopes of enticing traders to move their business and capital elsewhere. The fact gamblers can lay outcomes on the exchanges has resulted in criticism from traditional bookmakers including the UK's "Big Three" - Gala Coral Group , Ladbrokes and William Hill.
These firms argue that granting "anonymous" punters the ability to bet that an outcome will not happen is causing corruption in sports such as horse racing since it is much easier to ensure a horse will lose a race than to ensure that it will win. Exchanges counter that, while corruption is possible on any gambling platform, the bookies' arguments are motivated not by concern for the integrity of sport but by commercial interests. Exchanges also assert they are well aware of who their customers are and keep a complete record of all betting activity in case of enquiries, whereas high-street bookies take anonymous cash bets.
Furthermore, customers can monitor the odds on the exchanges' user-friendly platforms independently. Exchanges and the authorities can be immediately alerted should suspicious betting patterns become apparent. Some exchanges have signed agreements with governing bodies of sport including the Jockey Club , with whom they insist they will co-operate fully if the latter suspects corruption to have taken place.
Exchanges have co-operated with police investigations when asked to do so, sometimes leading to arrests. From Wikipedia, the free encyclopedia. A marketplace for customers to bet on the outcome of discrete events. This article has multiple issues. Please help improve it or discuss these issues on the talk page. Learn how and when to remove these template messages.
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This is how our betting exchange of choice for this example, Betfair, make their money. But as we mentioned previously, lay betting is vital for matched bettors. Matched betting is a process which turns bookmaker free bets into withdrawable cash, with little, or no risk.
Because lay betting is important for matched bettors, OddsMonkey have teamed up with the number one betting exchange, Betfair, to make life so much simpler. It was developed to make finding suitable matched bets easier. Previously, this would be a long, frustrating process.
To get a better return with matched betting, you need to find an event where the bookmaker price is close to the exchange price. Our OddsMatcher tool scrapes the data from every bookmaker and betting exchange, and allows you to filter for suitable bets. In the past, it was a point of reference only. But time is of the essence in matched betting. Prices are constantly changing, so you need to be quick. So what did we do? We spoke to Betfair, and with some technical wizardry, we integrated Betfair into our platform.
Before now, the biggest risk with matched betting has been human error. But our integration of Betfair takes us one step closer to eliminating that risk altogether! About Our Company. We are a crack team of software developers and experienced Matched Bettors, dedicated to helping you earn a sustainable, tax-free income every month.
The formula to calculate this liability yourself is. So for the below example, that is: 1. Get in touch. The exchange is simply acting as the middleman, allowing users to both set a price for their bet and take a price that others are offering.
Because punters are backing and laying bets against each other, the exchange doesn't mind at all who wins or loses. This results in better odds and a much more efficient book than you will ever find at a traditional bookie who also has to add in a profit margin.
I'll explain both of these in full, starting with exchange commissions. Exchanges make their money by charging commission, most often on winning bets only. They all have their own ways of calculating commission payments, but for this explanation I'll concentrate on Betfair which is the most popular betting exchange in the UK. If you make a net profit in a Betfair market, you will be charged a commission. For example, if you back a home win and the game ends , you will be charged a percentage of your profit.
However, if the game ends then you will have lost your bet and there will be no commission to pay. Taking it a step further, if you back a home win and decide to "green up" the market at to protect your profit, then you will be using some of your potential profit to cover the other outcomes in the Match Odds market. Your net profit at the end of the game will be lower and, therefore, you will pay less commission.
If that doesn't make sense right now, don't worry as I will be talking about backing, laying and trading a little later on. All you need to understand at this point is that Betfair will charge commission as a percentage of your net profit. Betfair calculates its commission by multiplying your net profit by the Market Base Rate. From there, they apply a discount depending on how much money you have put through the exchange. As you can imagine, this can have a massive impact on your profit margin!
The size of the commission discount - which Betfair sometimes describes as the "Discount Rate" - depends on how many Betfair Exchange Points you have been able to accrue on your account. The more you trade on Betfair, the more Betfair Exchange Points you will receive. This improves your Discount Rate and reduces the amount of commission you have to pay on your winning bets. Betfair Exchange Points are added to an account equally, no matter whether your bets have won or lost.
If you want to find a complete history of your Betfair Points, click on 'Betfair Points Statement' in the 'My Account' section of the site. You can prevent this by taking a "Betfair holiday" which freezes your points for one week. All new customers automatically receive one Betfair holiday when they join, then an extra week is added each three months up to a maximum of four weeks worth.
It's worth noting that if you trade during a Betfair holiday, you will not see any points added to your account either - your points are frozen. You may be aware of an additional Betfair tax on winnings known as "Premium Charge". According to Betfair, only around 0. You will be considered as a potential payer of the Betfair Premium Charge if your account matches the following conditions. If your account meets the above three conditions, there is a chance you will be deemed eligible to pay the Premium Charge and you will be informed by Betfair.
No charges will be taken out of your account before you have been told of the change to your account status. You're only going to pay Premium Charge if you're winning on Betfair and it's considered by many to be an achievement. Some users have complained that the Betfair Premium Charge is too complicated to understand and it does seem to be a bit of a minefield that the average trader may struggle to get their heads around, which is partly why its introduction was met with such a negative reaction.
Betfair Premium Charge avoidance is a controversial subject. For some traders, Premium Charge is a sign of greed for a company that is virtually certain to make profits due to its status as the leading betting exchange in the UK. However, others believe that it deters market makers from using automated bots to siphon profits and that it is only fair for those with extremely profitable accounts to pay more. You can always close your Betfair account if you object that strongly!
The one way that I recommend to avoid paying Premium Charge - or at least to reduce the amount payable - is to use different exchanges whenever you can. Because of liquidity issues it would be difficult to trade a correct score market in French Ligue 2 at one of the other exchanges, but Match Odds in the Premier League would have no such problem.
Bear in mind that your favourite trading software may not work on other exchanges, so you will need to trade manually. Some will suggest finding arbs in order to reduce profits at Betfair, but this takes a lot of time and you will soon find that your bookie accounts are closed or gubbed. It's only a temporary solution and not worth the effort; you're much better off spending the time on your football trading. It has also been suggested that you could use multiple Betfair accounts, however this is strictly against Betfair's terms and conditions.
They have a dedicated team who investigate and suspend suspicious accounts, so you would have to go to great lengths in order to evade detection. It's not worth the risk, so don't be tempted to try this. Open accounts at other exchanges, use them when you can and pay as little Premium Charge as you have to. The ability to back and lay bets is a key difference between traditional bookmakers and betting exchanges.
In the simplest terms:. For example, if you think that Manchester United are going to win their next home match you could place a back bet on the home win. But if you think they are not going to win, you could lay the home win.
In that instance, your bet would win as long as Manchester United do not win, ie if the match ends in a draw or an away win. By placing a lay bet, you are effectively taking on the role of the bookmaker by offering odds that can then be taken by another user.
So if you lay Manchester United, Betfair will find another trader who wishes to back Manchester United at the price you're offering and match the two sides - back and lay. Let's look take a look at an example of how to lay on Betfair. Here is the Betfair Match Odds market for England's international friendly match against the Netherlands :. As you can see by the odds offered on Betfair, England are the favourites to win this match.
In case you don't know already, the back odds on Betfair are listed in blue, while the lay odds are coloured in a rather fetching shade of pink. With back odds of 1. However, when you are laying a bet you are betting against that outcome. The lay odds in pink for England against Netherlands in this match are currently set at 1.
You can back and lay at the prices shown in the market, or you can set your own odds. If you decide that 1. You would not get matched right away as other users would be happily backing at the higher price of 1. The figure shown below the odds is how much money there is in the market at this time.
Football matches between the most popular teams typically have a lot of money in the Match Odds market, especially as kick off time approaches. Backing and laying for profit is how football traders make their money, so make sure you fully understand what you are doing before you start placing your bets on Betfair. Getting it the wrong way round can be an expensive mistake! Liquidity is the amount of money available in a betting exchange market and it varies greatly from match to match.
When you want to trade out, you need to have someone else offering the price you need on Betfair otherwise you're stuck. Match Odds markets tend to have the best liquidity and in bigger leagues, such as the English Premier League, liquidity is never a problem.
In smaller leagues, perhaps English League One, liquidity will never be as good. It may be enough to trade on a Tuesday evening when there are not a huge number of fixtures, but at 3pm on a Saturday there will be lots of bigger leagues sucking up the available money. You may well be able to get in and out of trades with smaller stakes, but you might need to wait a few minutes to be matched.
There will be times when a goal will go against you while you wait, so bear that additional risk in mind. Smaller markets in smaller leagues are even more troublesome. If in doubt, stay out. If you're new to exchange trading, it may seem quite daunting at first. However, if you take the time to learn then it is perfectly possible to make consistent, long-term profits and even a full-time living from Betfair.
Punters used to focus on how to make money betting on football, but in recent years there has been a definite switch to football trading.
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