Horse Racing Trading
How to trade on Betting Exchanges.
Just like Share Trading it is possible to buy and sell horses on the Exchange.
ie: back a horse if you think it is going to win or Lay a horse if you think it will lose.
Here is screenshot from betfair:
If you look on the Back columns you can see the current price for 'By The Edge' is 3.9 and there is £53 available. Alternatively there is £25 available to Lay the horse at 3.95.
A Note on Odds: All the Betting Exchanges use decimal odds. So for example 3-1 is 4 in decimal. Dont worry there are plenty of convertors available <Try Here> if you need any help understanding this.
The beauty of the exchange is that you dont have to take the odds on offer. You can enter any odds for a horse and if someone matches them before the races starts then the bet stands.
The screenshot shows a £100 Lay on 'By The Edge'. On the left of the screen you can see the potential profit (in green) or loss (in red) for each horse.
ie: if the horse loses then we win £95.90 ( £100 minus the commission).
if the horse wins then we lose £295 ( 100*2.95 )