What Is Betfair Trading?
Betfair trading is buying and selling prices on the betting exchange, similar to trading stocks. You are not just placing a bet and waiting for the result. Instead, you can open a position at one price and close it later at another, locking in profit or reducing risk.
On Betfair, you trade against other people, not a bookmaker. That means the market is driven by supply and demand, and prices move as opinions change. Traders aim to profit from these price movements and from building balanced positions.
Back vs Lay: The Core Concepts
Every exchange trade starts with understanding back and lay bets:
- Back = you are betting on an outcome to happen.
- Lay = you are betting against an outcome (acting like the bookmaker).
A simple trade might involve backing a team at 3.0 and laying it later at 2.5 if the price shortens. The difference between the two prices is your edge.
Understanding Exchange Prices
Exchange odds are a direct reflection of implied probability. You can convert odds into probability with a simple formula:
impliedProbability = 1 / decimalOddsThis tells you how likely the market thinks an outcome is. If your own estimate is higher or lower, you can decide whether to back or lay.
Commission and Net Profit
Betfair charges commission on winning trades only. This means your true profit is smaller than the raw difference between prices. Always factor commission into your calculations so your expected profit is realistic.
Use the Smarter Trades calculators to model commission accurately: Visit the main calculators.
Greening Up: Locking in Profit
“Greening up” means spreading your profit across all outcomes so you win the same amount regardless of what happens. This is a key goal of trading rather than gambling.
Try the hedge stakes tool to learn how to green up a position: Back/Lay Hedging Calculator.
Bankroll Basics for Beginners
Trading is a long-term game. Protecting your bankroll is more important than winning any single trade. Stick to consistent stake sizing, avoid chasing losses, and never risk money you cannot afford to lose.
If you want a structured staking method, start with our beginner-friendly guide: Kelly Staking on Betfair.
Common Mistakes New Traders Make
- Trading without a plan and reacting emotionally to price changes.
- Ignoring commission or overestimating your edge.
- Using too much of your bankroll on a single market.
- Assuming that a high strike rate means long-term profit.
Beginner-Friendly Tools to Start With
These tools are ideal for your first week of trading:
- Lay Liability Calculator for understanding risk.
- Break-Even Odds Guide for pricing trades.
- Expected Value Guide for long-term edges.
Popular Calculators to Try Next
- Lay liability calculator to model downside risk.
- Back/lay hedge calculator for greening up.
- Expected value calculator to compare edges.
- Kelly staking calculator to size stakes responsibly.
Next Steps
Once you understand the basics, move on to the deeper strategy guides on Smarter Trades. Focus on one concept at a time, and practice with small stakes as you learn how prices move.
You can also download the beginner PDF for offline study: Beginner Betfair Trading Guide (PDF)
Download the Printable PDF
Prefer a printable version? Download the Beginner’s Guide PDF here: Download the Beginner Betfair Trading Guide (PDF)