See how quick it was? Magic.
It’s not as easy as it looks though, it’ll take time to perfect your scalping skills. More pointers in a moment…
If you’ve still not quite grasped how a trade works there’s a longer explanation here.
It doesn’t matter which bet is placed first, just that they’re both matched fully. Having a preference as to which way the price will move is helpful of course. If the price moves against you, it’s time to close out fast. It’s not going to be possible to win 100% of the time, but by getting your bets matched more often than not it’s quite possible to come out on top.
The business of placing your bets and managing your position is pretty important. There’s a whole section about it in the pre-race video pack.
How You Scalp A Price:
What factors are important to succeed?
The first thing to remember is; scalping is often a very quick manoeuvre. For this reason alone it’s best to use a betting exchange software, we want speed on our side. Personally I use A GeeksToy Pro. The main benefits are once click betting and the speed at which market information is displayed (milliseconds) as well as some fancy charts and indicators.
The second thing is; you’re not the only person to be doing this! Scalping Betfair require’s a fair amount of discipline and self-control. When both your bets haven’t been matched, you may need to ‘scratch’ or cancel the scalp by placing the exit bet at the same price as your opening bet. Remember: scratching isn’t a losing bet.
Once you’re set up and ready to go it’s time to think about the actual execution of your trade. Always start with the end in mind.
What will you do if things don’t go to plan?
Not having a plan is the guaranteed route to losing. Successful trading is all about managing risk, when you do that correctly the profits will take care of themselves.
The best single tip I can give you when it comes to scalping Betfair is this; always offer a price when opening a scalp. When you think about it, you’re already at an advantage when the price hasn’t moved if you offered a price. In fact, in many cases you won’t even require market movement. By offering a price at entry and exit of a scalp trade you can make money purely from the market turnover. Matching bets on both sides of the book (back and lay).
When To Attempt Scalping Betfair…
We know what a scalp is, how it works and what we need to execute it. But like everything in life, there’s a time and a place. So, when is this technique best employed?
If you’re anything like me, you won’t like risk. It may limit when you can do it but, scalping’s ideal for the risk averse trader (in the right situation).
As I hinted above, market turnover can be of great assistance to scalpers. Exposure time is limited in higher liquidity situations, limiting our risk in the process. So it’s logical to make sure you’re only looking to attempt a scalp trade in the very best conditions. The better the conditions are too, the larger bets you can use too but that’s a bit more advanced.
To find the best situations to employ this technique you’ll want to look for better quality racing. The Sporting Life is a useful tool for this, it’ll show you the horse racing on offer that day, media coverage and other things that make for a good betting market like number of horses within the race, prize money and race quality.
Limiting Your Risk
Scalping Betfair appeals more than other methods because of the low risk involved. Even so, it’s important to know your limits.
Poor staking is the biggest problem for most. Adding to a scalp trade that’s going wrong is nearly always a bad idea. Even though I just told you, it’s more-or-less guaranteed you’ll do it at one point or another.
Unmatched money can disappear within the market at any point, although it’s a good idea to make sure you are staking in line with the market.
For example; the image below shows a £100 lay bet placed at 5.1 (seen in the centre column). The stake size is well out of proportion to this market if we were scalping.
Where-as you’d get away with significantly bigger stakes in this kind of situation. Purely because of the amount of unmatched money available.
Why’s it important?
Remember we want to limit the downside. So if the trade should go against us in the first example and we had staked £100 we would have to match against money up to 5 ticks away, bringing a significant loss. Where-as if you’d used double the size stake in the second example, you’d only have to match your bet at the available back/lay price of 3.4. Despite double-stakes, theirs less risk in the second example.
Remember it’s not just about losing less either! If you’d placed a winning scalp, there’s less money passing through the market meaning it’d take longer to get your winning bet matched. And of course, the more time the trade is open, the more risk there is of something going wrong.
Scalping Betfair is often as hard as you make it. Most people come into trading betting exchanges via matched betting or just plain punting. That’s fine but the urge is to have this compulsion to bet again and again without any real edge over the market. It doesn’t matter if you’re scalping or swing trading, you won’t get rich behaving like that.
Take your time, check out the resources mentioned in this post and free videos on YouTube. Knowledge is paramount.
Once you’re comfortable with the markets and how they work your odds of success are dramatically increased. As the saying goes: the more you learn, the more you earn. Good luck!
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