What is scalping on Betfair?
What is scalping?
Scalping is short term trading. It is a form of sports arbitrage betting. A scalping trader looks to make lots of small profits, which in time add up. Scalping relies on lots of active participants in the market. Scalping on Betfair on UK horse racing is the best place for this type of sports arbitrage betting. This is because you have lots of liquidity in these markets, in particular just before the start of the race, because you get a surge of money coming into the market.
The concept is simple, if you back a price you must lay at a higher price, or, if you lay a price you must back a lower price to make a profit. Whatever happens your profit is guaranteed and is equal to the difference or spread between the back and lay price. The Betfair betting exchange is an ideal place to trade in this way.
Basics of scalping on Betfair |
Is it consistent? |
Common mistakes |
How to scalp |
Scalping on Betfair basics
You can scalp any betting market. However, you must have enough people participating in the market or enough liquidity. The UK horse racing market on Betfair lends its self to scalping because of the amount of participants and volume of money entering the market. When we talk about scalping here we will be referring to UK horse racing for the reasons mentioned.
Scalping on Betfair involves pre race scalping rather than trading prices when a horse race is in play. The pre race markets is not susceptible to out side events like in play markets, reducing the risk.
Scalping a pre race market involves popping in an out of the market taking quick small profits. These are called scratch trades. With the pre race market there is no danger that the price is going to shot off in one direction, for example, a rider falls of the horse.
Scalping this pre race market on Betfair is good because the race hasn't actually started. There are no physical events happening that are moving the market. But, the price still moves around enough to make money. This movement in the price is really just noise. Scalping this market with larger stakes is less risky because it is not too volatile. Scalping on Betfair with larger stakes is where your profits can really pick up.
The Betfair betting exchange is good for scalping because you can back and lay the favourite horse quickly.
If you would like an account with the Betfair betting exchange we suggest you look at our Betfair free bet page so you can get a free bet when you sign up.
Are scalping opportunities on Betfair consistent?
Check out our Betfair review.
Scalping opportunities are presented with every UK horse racing event that is covered on the Betfair betting exchange.
Scalping common mistakes ?
Keep to your timescale's
Remember scalping on Betfair involves only a short timescale. You can't let your opinion of whether or not your think a horse might actually win effect your judgment. You don't want to end up backing a horse who's price continues to drop and that has led you to believe it will win. This is gambling and not trading.
Not getting out quickly
Scalping on Betfair really does have to be short term. We have no idea where the price will go. If it moves against you, you have to assume the price will continue to move against you and get out quickly. If you let a price continue to move to far you can wipe out all your profits. The key is to scalp your profits quickly and and cut losses even quicker. Set an acceptable level of profit you expect possibly 2 to 3 ticks. If it moves again you cut your losses at 1 or 2 ticks. Each scalping scratch trade should have a time scale of 10 to 20 seconds at most.
Not appreciating the benefit of scratch trade
Scratch trades are a form of scalping when you are in and out of the market very quickly. This form of scalping is all about money management and involves cutting loses from your scalping trades quickly. Some people don't like scratch trades because they can see the price moving in the right direction after they have exiting and get annoyed about missing out on a profit. But, a scratch trade will get you out if the prices moves in the wrong direction. It's psychology really, a missed profit has a different effect on some people than a saved loss.
If you don't do a lot of scratch trades then you losses would mount. And you'll spend most of your time regaining losses.
It better to not lose and not win than it is to lose then win.
Don't let a losing trade ride as a bet
To be successful you expect to take profits and loses of about the same size. The frequency of profits should outweigh your losses. You don't want the losses to get out of hand other wise you are on an up hill struggle to regain them. The worst thing you can do is hang onto a bet because it's losing and let it play out as the race commences. This is not the way and is simply gambling.
You can lose your entire profits by doing this. So it is not advisable.
How to scalp?
Betfair.com opened up their website to software programmers allowing third party providers to offer tools to aid Betfair traders. There are a range of software providers with systems that make scalping a lot easier. Below Adam talks you through scalping on Betfair using his specialist software BetTrader.
You may want to watch this video of 'The Badger' actively scalping on Betfair using the BetTrader from Racing Traders. It serves as an excellent example of how to scalp trades on Betfair.
Article courtesy of Adam Todd at Betfair account. You will also get a free bet which you'll be able to use to start scalping. Software from
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