Sports trading or how to bet like on the stock exchange
by Azadeh Ghavidel |
Hervé, could you explain to us what a sports betting trader actually does? What is trading?
On the financial markets, a trader buys and sells financial securities. It’s the same thing for sports bets. The trader buys and sells bets on a Betting Exchange website such as Betfair. A trade consists of a purchase (back) and a sale (lay) of the same bet at two different odds in the very short term. You can buy and then sell, or vice-versa. The order does not matter. The difference between the odds for the purchase and the odds for the sale will be the profit or loss.
Could you give us a clear example?
Of course. Bastos, the Lyon midfielder, is awarded a free kick 25 metres out. The odds for a Lyon win immediately drop from 1.50 to 1.40, for example. I don’t think Bastos will score so I “lay” 100 euros at 1.4. I thus risk paying 40 euros (100x1.4) if Lyon wins the match. Bastos fails to score and the odds rise again to 1.55 after the free kick. I then buy back 100 euros of my bet. So if Lyon wins, I would have won 15 euros on this trade. ((1.551.4) x100). However, if Bastos scores, the odds are liable to change to 1.2 and in that case too, I will buy in order to cut my losses which will be 20 euros if Lyon wins ((1.21.4) x100). I will repeat this type of trade several times throughout the 90 minutes and in a good match, I will generally pocket around 100-150 euros.
On what type of sports do you trade? How do you select your markets?
For trading, you must have volume. You therefore need to trade on popular sports and important matches. My favourite sport for trading is tennis. It is a sport that I know well and I’m good at anticipating what happens next. I also trade on football but it is riskier given that the odds vary a lot more (after a goal or a red card, for example).
Can you trade on several events at the same time?
Yes, but rarely and only if I can follow the events live. I don’t trade if I can’t watch the event or events on television.
Do you need special equipment for trading?
Not necessarily, but it is preferable to have a trading software programme which is especially useful for placing orders more quickly and on which you can see the refreshed odds more often.
How is your day structured?
It all depends on the tennis schedules (my favourite sport). I sleep according to the major tournaments. When they take place in Europe, I work in the afternoons every day including the weekends for the finals. It’s more complicated when the tournaments are held in Asia or America. Then, I’m forced to stay up some of the night and I keep odd hours. Of course, I get to have a holiday when there are fewer events. That gives me a break.
How much money do you have on account at Betfair?
You don’t need an enormous amount, given that the money is continually being reinvested and that all trades are short-term. With just 20,000 euros at Betfair, I’ve previously wagered 400,000 euros in a month for a profit of nearly 10,000 euros.
How much do you wager each month on average?
It all depends on the events. Between 100,000 and 400,000 euros.
How much do you earn each month on average?
Once again, it all depends on the events. Between 2,000 and 10,000 euros.
What are the downsides to this activity when carried out professionally?
The stress, lack of weekends and the absence of any social status.
In your opinion, what is the main quality that a trader must have?
Knowing how to accept losing trades. You mustn’t hesitate to write off a losing position if you are mistaken in your trading. Anyone who can’t do this runs the risk of very heavy losses. I struggled to do this at first, so I know what I’m talking about!
What advice would you give to someone wanting to start out?
Start on Betfair with no software and very small sums of money. Then, and only when it has worked successfully for 2 or 3 months in a row, you can increase the sums. But always gradually!
Many thanks for your precious advice, Hervé, and good luck with your next trades!
