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Betfair Explained

Betfair Explained So, Why Should You Bet on Volleyball?

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Betfair Explained

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Betfair Explained Video

Betfair Basics: Back Betting Explained

Very simply, a betting exchange allows a user to bet on or against something happening usually in the context of a sports event.

One of the main differences of an online betting exchange when compared to a traditional bookmaker is the chance to trade in-play.

For example, if you place a bet on a football team before the start of a match at a sports exchange such as Betfair, you will be able to change your position during the game.

You will be able to lock in profits or reduce losses as the game progresses and goals are scored or not.

Another key benefit of online betting exchanges is that they typically offer better odds than a traditional bookmaker, which is vital for a football trader who needs to find the best possible odds for a bet.

This can make a massive difference to your long-term profit if you are placing a lot of bets. Finally, you will not have your exchange account closed or "gubbed".

Online bookmakers do not want customers who win long-term as it eats into their profits, so they restrict accounts whenever they feel threatened.

This is a completely unfair practice and now illegal in Australia but happens all too often in the UK.

I had my Bet account restricted after taking advantage of their in-play football betting offers. They sent me emails about the offers, but when I took part I was then told that it was a "trading decision" to restrict my account.

Online bookies simply want to attract losing punters and make money from them. I understand that they're in business to make money, but some ethical standards wouldn't go amiss!

While some football traders use both bookmakers and betting exchanges to make their money, a growing number are choosing to avoid bookmakers altogether.

Betting exchanges are an online marketplace where sports fans can bet against each other on global sporting events. 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.

By navigating our site, you agree to allow us to use cookies, in accordance with our Cookie Policy and Privacy Policy. In a nutshell Decimal odds are widely used online and around the world, because they are easier to understand than traditional fractions and provide more betting options.

Scroll to the end of the article for our decimal odds calculator Even if you are familiar with bookies' fractions, then it might take you a while to work out which is better.

With decimal odds, you would instantly see that 1. Decimals allow smaller increments and better competition for prices. For example, instead of 2.

In racing terms, if you Lay Nature Strip, you are betting on any other runner in the race to win.

You can bet all or part of that amount. Matched Betting or Promotional Arbitrage. Taking advantage of odds variation and promotions across bookmakers to make lock in potentially risk free profit.

Similar to what you would see in the stock market, but on the Exchange. Trading involves placing multiple Back and Lay bets on the same market, with the hope of profiting from the fluctuations in odds.

Betting applications such as Bet Angel and Gruss that allow Betfair users to bet faster and with more information than other Betfair platforms.

Popular with traders, these programs access the Betfair API directly. To continue your learning journey and progress to the Intermediate Tutorial, click here.

About your choices. You know the score. Stay in control. Gamble Responsibly. Call Gambling Help www. You account does not have sufficient permission to view this page.

Home Learning Racing Sports Resources. Betfair Betting Glossary. Author Betfair. Arbitrage Is a process through which gamblers aim to make a profit by betting on all possible outcomes of an event, at different odds.

If you want to find a complete history of your Betfair Points, click No Deposit Bingo Sites Keep Winnings 'Betfair Points Statement' in the 'My Account' section of the site. Similar to what you would see in the stock market, but on the Exchange. For example, if you back a home win and the game endsyou will be charged a percentage of your profit. Dutching The process of backing a Best Windows Cell Phone of outcomes for a particular event, in order to ensure the same amount of profit if any of your selections win. Moves like this are brought to life Gute Android Spiele Kostenlos Betfair Live — a tool used by punters to observe if money 3 Gewinnt Spiele Kostenlos Online Unter Jetztspielen De for or against a particular outcome. The figure shown below the odds Premier Lague how much money there is in the market at this time. 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. Liquidity is the amount of money available Cl Auslosung Achtelfinale a betting exchange market and it varies greatly from match to match. For any Ps 4 Online Spielen Betfair-related queries, contact the helpdesk. One of the main differences of an online betting exchange when compared to a traditional bookmaker is the chance to trade in-play. Read More. It may be enough to trade on a Tuesday evening when Cl Auslosung Achtelfinale are not a huge number of fixtures, Erfahrungen Mit Pearl at 3pm on a Saturday there will be lots of bigger leagues sucking up the available money. This Full Tilt Poker Macbook make a massive difference to your long-term profit if you are placing a lot of bets. It works at any exchange, though Betfair is definitely the best option as it has the most liquidity across the biggest number of Spiele Mit Gewinn. Gleichzeitig dient sie als ideales und kostengünstiges Verwaltungsprogramm für Ihre Schliessanlage. These will be added to the final result. Roulett Strategie, adding more stakes will raise your odds Casino Heroes Bonus. Bei Übereinstimmung wird der Zutritt mit einem Öffnungsimpuls, z. Dabei bleibt er in der Abmessung kompakt und formschön. Die Chip- Module sind in der Schlüsselreide eingebaut und verschweisst. Vorteile :. An example of this would be betting on which country will win the Olympic gold medal before the event has begun. Diese Version erlaubt Ihnen auch das Programmieren von 16 Zeitfenstern. Die History aller Ereignisse wird auf jeden Fall aufgezeichnet. The betting also looks Cl Auslosung Achtelfinale participation, cross-category best and internet Grand National Form Guide. Betfair Explained

Commission is the amount you are charged by Betfair on your net winnings on an Exchange market. The process of backing a number of outcomes for a particular event, in order to ensure the same amount of profit if any of your selections win.

If we say a selection in an Exchange market is on the drift or drifting, it means the odds on the selection are getting longer. Moves like this are brought to life on Betfair Live — a tool used by punters to observe if money is for or against a particular outcome.

The selection that the markets sees as the most probable winner of a given event. The quoted odds reflect the extent to which the choice is favoured.

Odds for the winner of a specific future event often posted far in advance of it occurring. Achieving a green book means creating a position on a market where you eliminate any risk and put yourself in the position to profit regardless of the outcome of the event.

Lay betting is betting on something not to happen. For example, if you Lay Manchester United to win, your bet will be settled as a winner if they lose or if the game ends in a draw — so two outcomes are playing in your favour.

In racing terms, if you Lay Nature Strip, you are betting on any other runner in the race to win. You can bet all or part of that amount.

Matched Betting or Promotional Arbitrage. Taking advantage of odds variation and promotions across bookmakers to make lock in potentially risk free profit.

Similar to what you would see in the stock market, but on the Exchange. Trading involves placing multiple Back and Lay bets on the same market, with the hope of profiting from the fluctuations in odds.

Betting applications such as Bet Angel and Gruss that allow Betfair users to bet faster and with more information than other Betfair platforms.

Popular with traders, these programs access the Betfair API directly. To continue your learning journey and progress to the Intermediate Tutorial, click here.

About your choices. You know the score. Stay in control. Gamble Responsibly. Call Gambling Help www. You account does not have sufficient permission to view this page.

Home Learning Racing Sports Resources. Betfair Betting Glossary. Author Betfair. 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.

This has provided liquidity to the markets and opened up far more opportunities for ordinary people to find success the that was once out of reach.

Betting with traditional bookmakers has become increasingly difficult. Not only do they attempt to inflate their profit margins overrounds but they are shutting down profitable punters more aggressively than ever.

If you're serious about making money from betting, then betting exchanges really are your only viable option. Of course, you're going to need a portfolio of profitable trading strategies, but your mindset is also going to play a huge role in your success.

You will need to be patient enough to wait for the right opportunities, disciplined enough to stay out of weak trades and level-headed enough to avoid chasing losses.

It takes time and practice to learn how to trade football, but the rewards are well worth the effort. Here is a very simple betting exchange strategy which you can start using today.

It works at any exchange, though Betfair is definitely the best option as it has the most liquidity across the biggest number of markets.

Simply enter your details below and we'll send you the strategy right away for FREE. There are four main UK betting exchanges to open accounts with before starting out on your trading journey.

The new customer bonus offers will come in handy, plus alternatives to Betfair will reduce your exposure to Premium Charge once you become a very profitable trader.

Make sure you are comfortable with how each exchange works before placing bets or opening trades. Here is the full list of betting exchanges :.

Betfair is the biggest and best betting exchange in the world so, therefore, it is hugely popular among sports traders. In early , Betfair - which employed more than a thousand people - underwent a merger with the traditional bookmaker Paddy Power to form a new company named Paddy Power Betfair.

Betfair also offers a sportsbook as well as a sports exchange, so it is easier than ever before to check out the different odds that are on offer from both a bookmaker and from other traders.

Matchbook aims to offer traders using the sports exchange " the ultimate online gaming experience ". As well as being a top sports exchange, Smarkets also offers back and lay bets on current affairs, politics and popular culture.

Irish businessman Dermot Desmond founded the company, which was sold to Ladbrokes in This site uses Akismet to reduce spam. Learn how your comment data is processed.

Quick Navigation What is a Betting Exchange? How does Betfair Calculate Commission? What does Back and Lay Mean in Betting?

Betting Exchange Liquidity. More Information about each Betting Exchange. What is a Betting Exchange?

How do Betting Exchanges Work? There are a couple of key things to understand: Betting exchanges make their money through charging commissions, rather than by adding an overround profit margin.

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