Common Football Trading Strategies on Betting Exchanges

Football bettors will surely enjoy this article, as we will discuss some of the best football trading strategies on betting exchanges. The world of football is constantly developing, and so are betting opportunities.

If you want to expand your betting knowledge, better understand betting exchanges, and be as well-prepared as possible, you should read this article thoroughly. We are dedicated to providing you with an in-depth analysis that will help you grasp a slightly complex subject well.

What are betting exchanges?

Let’s dive right in and say that betting exchanges are a game-changer for those who enjoy online football betting. If you are wondering whether or not there is an alternative to the traditional football betting experience, then betting exchanges are for you.

Here’s a list of the key things you need to know about what betting exchanges are and what sort of betting opportunities they offer you:

• Betting exchanges are marketplaces where customers can bet against each other in a peer-to-peer betting experience.
• Bettors can buy (also known as ‘Back’ betting) or sell (also known as ‘Lay’ betting) the outcome of a previously agreed upon event.
• Bettors can also trade in real-time, increasing their chances of making good profits or cutting losses.
• Sportsbooks generate revenue through betting exchanges by charging a negligible commission on winning wagers.

Introduced in the early 2000s by Betfair, Matchbook, and Flutter, betting exchanges are the next big thing in online sports betting. Significantly differing from traditional online sports betting, they offer YOU the possibility of becoming the bookmaker, as you can dictate the odds.

Key betting exchange concepts

Back betting

Traditional betting involves a bookmaker setting odds on the likelihood of an outcome occurring. You, the bettor, can bet on (‘Back') an outcome. Back betting in betting exchanges is the same as with traditional bookmakers – you bet on a specific outcome to occur.

Lay betting

In case you don’t think an outcome will occur, ‘Lay’ betting is what you opt for. You become the bookie by offering punters the possibility to lay a bet on a specific outcome with your own special odds. In simpler words, ‘Laying’ in the realm of betting exchanges is offering odds on an event you think will not occur.

Liquidity and market fluctuations

The key thing you need to know about liquidity is that it represents the exact amount of money you can lay or back on selections for the given market you plan to bet on. The general rule of thumb is that you won’t find tempting liquidity on smaller events.

Those who seek the best possible money, and therefore liquidity, should turn their attention to major events and popular markets and ignore the not-so-popular ones, which have low liquidity.

Market fluctuations in odds are another thing you should turn your attention to. As mentioned earlier in our article, punters can ‘become the bookmaker,' which means they dictate the odds. The circumstances regarding a specific match and event may change, so the odds may fluctuate at any given time.

Now, let's turn our attention to common football trading strategies on betting exchanges.

Best football trading strategies on betting exchanges

Pre-match trading strategies

Trading before the kick-off is a hidden gem, as it gives you the opportunity to make a thorough analysis of the event. Pre-match markets aren’t as volatile as in-play ones, which is a big plus.

The first and most important aspect regarding pre-match trading strategies is to look for a match that starts in at least a day (preferably as late as possible). This way, you get a chance for a more significant change in odds.

A straight-to-the-point explanation of pre-match betting is it focuses on ‘backing’ or ‘laying’ a bet on a result hours or even days before the kick-off. This is done in anticipation that the odds will move in a direction that is favourable to you, letting you cash out for a profit before the match even begins. The best strategy here is to seek out teams that often rotate their squads or teams with injury-prone players.

The key questions you need to ask yourself for a successful pre-match trading strategy are:

• Are there any injured players prior to the start of the match?
• Will the manager make changes to his starting XI?
• Does one of the teams have a packed schedule?

Plenty of factors can determine whether or not the odds will move in your favour. That’s why you need to be careful with pre-match planning. Laying is getting more popular these days. It’s widely used when one is confident that a selection will lose.

In-play trading strategies

In-play trading is one of the most common football trading strategies on betting exchanges. It implies that you are allowed to trade while the event is still being played. The odds can (and will) fluctuate with circumstances during the match changing. This opens a whole bunch of opportunities for punters. Sure, the risk is greater, but so are the opportunities, as the prize pool is larger during the match.

Unlike pre-match betting, in-play bets often have a time delay between placing bets. This is done to make it harder for punters to accept offers for bets that have become more favourable.

In-play betting offers a much greater level of flexibility and allows you to assess the situation as it unfolds on the pitch. This means you can take steps to cut your losses or make a bigger profit as the match unfolds.

Key qualities you need to make in-play betting a successful strategy are:

• Swift decisions – quick analysis and rapid decision-making are paramount as in-play odds constantly change.
• Concentration – careful concentration of in-match events and match flow helps correctly assess the possibilities for a specific outcome.
• Market knowledge – knowledge of what you are betting on is key.

A good strategy is to pick a few teams and market you know well. Then, analyze them and stick to betting on them. Cashing out at the right time is the best strategy in football betting exchanges, as it gives you the chance to make some nice profits despite your bet still being undecided.

Hedging and risk management

Hedging is a powerful tool when it comes to betting exchanges. It allows you to place a bet on a different outcome than the one you initially bet on. This allows bettors to lower their risk and add a bit of insurance to their initial bet as the odds change in their favour.

This way, you secure a guaranteed winning regardless of which outcome occurs. To ‘hedge’ a bet, you must place an initial bet, which is your ‘primary’ bet. Next, bet on the opposite outcome in order to reduce the financial risk of your primary bet.

Of course, this is not the only risk-management advice we could give regarding common football trading strategies on betting exchanges. As mentioned earlier, concentration is key. The key to winning is to follow what’s going on on the pitch, analyze it, and avoid unnecessary risks.

Common mistakes you need to avoid on betting exchanges

Overconfidence

Imagine you've made some nice profits on betting exchanges. That’s great! However, similar to success in any other venture, overconfidence can spell your demise.

Generally speaking, overconfidence in betting clouds your judgment and you become prone to making errors. This is probably one of the most common mistakes people make. Make sure to know when it’s a good time to hit the brakes.

Chasing losses

Losing is never fun. However, there’s a time and place to cover your losses. After losing, many punters immediately place an ill-advised wager in order to get their investment back.

This might as well be considered tossing money down the drain, as it is based on impulse rather than thoughtful consideration. The end result is often devastating. Instead, take time to breathe, research, and place a proper bet.

Not learning from past mistakes

The biggest rookie mistake with betting exchanges is doing the same thing over and over again and expecting different results. Your betting exchange strategy needs to constantly evolve, incorporating the things that consistently work and eliminating the things that don't.

Don't let your football trading strategy on betting exchanges become the definition of insanity.

Top UK Bookmakers Offering Betting Exchanges

Betfair

As mentioned earlier in our article, Betfair is one of the pioneers in betting exchanges. The services on the website are unmatched due to the vast sea of experience behind Betfair.

Betdaq

Second on our list, but surely a winner in anyone’s book. Betdaq is widely known as one of the best betting exchange platforms, with Android and iOS apps.

Spreadex

Offering ‘industry-leading’ odds, Spreadex is considered among the best options for football bettors out there. Spreadex has recently secured more customers, which caused it to flourish into one of the best platforms.

Recapping the best football trading strategies on betting exchanges

In many ways, football trading on betting exchanges is very different than traditional football betting. It's much more about correct timing and thoughtful consideration of bet placements. It's a more complex system.

However, since betting exchanges are harder to understand and fluctuate constantly, punters can capitalise on betting exchange markets if they know what to look for. Using common football betting exchange strategies is a good start, and with more research, football betting exchanges can be a great alternative to traditional football betting.