Betfair Basics Tutorial

Summary

This video explains how match bettors can use betting exchanges like Betfair to their advantage. It highlights the differences between traditional bookmakers and betting exchanges, with a focus on better odds and the ability to lay off bets to minimize losses. Key concepts like liquidity, commission, and the Betfair interface are discussed, offering tips on how to effectively place and manage bets. The video also covers important settings for optimizing your betting experience, particularly in high-liquidity sports events and volatile racing markets. The goal is to help users maximize their profits while minimizing risk.

Takeaways

• 😀 Betting exchanges like Betfair allow match bettors to lay off their qualifying bets with minimal loss, freeing up bonus bets.
• 😀 Traditional bookmakers make money through an overround, offering odds lower than the actual probability of an event, e.g., 1.9 odds for a 50/50 event like a coin toss.
• 😀 Betting exchanges like Betfair don't set their own odds; the users set the odds based on their preferences, leading to potentially better odds.
• 😀 Betfair charges a commission on profits, usually around 5%, as their method of generating revenue, unlike traditional bookmakers.
• 😀 In sporting events, odds change gradually over time, with the most significant fluctuations typically occurring in the final hour before the event starts.
• 😀 When placing bets on Betfair, you can back a team (e.g., Inter Milan to win) or lay against a team (e.g., Juventus or a draw).
• 😀 If a bet is partially matched on Betfair, you can either keep the bet to be matched at the specified odds or take the starting price (SP).
• 😀 Markets with low liquidity (e.g., minor leagues) should be avoided, as the odds can be volatile and there may be significant gaps between the back and lay prices.
• 😀 For horse racing, the market tends to be more volatile, with major changes in the last minutes before a race as other traders place bets.
• 😀 On Betfair, you can adjust your settings to display net commission and refresh odds more frequently (e.g., every second), improving betting efficiency.
• 😀 Commission rates for racing vary by location, with New Zealand races having a 5% commission and races in New South Wales/ACT having a 10% commission.

Q & A

What is the main advantage of using betting exchanges like Betfair for match betting?

The main advantage of using betting exchanges like Betfair is the ability to lay off qualifying bets at the bookmaker for minimal loss, which frees up bonus bets. This allows bettors to lock in a profit by covering all outcomes with the bonus bet.

How do bookmakers make money through overround?

Bookmakers make money through overround by offering odds that are lower than the true probability of an event. For example, in a coin toss, the true odds should be 2.0, but bookmakers might offer odds like 1.9 or 1.8, ensuring they make a profit on every bet.

How are odds set on betting exchanges like Betfair?

On betting exchanges like Betfair, odds are determined by the users. The odds adjust based on the betting activity of users; if more people back a certain outcome, the odds decrease, and if more people oppose it, the odds increase.

What role do commissions play in betting exchanges?

Betting exchanges charge commissions on your profits as a way of making money. Typically, the commission rate is 5%, although it can vary for different sports and markets.

Why is it important to focus on the lay boxes in match betting?

It's important to focus on the lay boxes in match betting because as match bettors, we are primarily laying off qualifying bets and bonus bets, rather than placing backing bets. This helps in minimizing losses and maximizing the potential to lock in profits.

What are the potential issues when betting on low liquidity markets?

In low liquidity markets, there are often significant gaps between the back and lay odds, which can result in partially matched or unfilled bets. These markets may also have less activity, making it harder to get your bets matched at favorable odds.

What happens if your bet is only partially matched on Betfair?

If your bet is only partially matched, you have two options: you can either keep the bet and wait for the remaining stake to be matched in play, or you can opt to take the starting price (SP), which automatically adjusts your bet to the price offered at the start of the event.

How can you adjust the refresh rate for odds on Betfair?

You can adjust the refresh rate for odds in the settings menu on Betfair. By setting it to 1 second, the odds refresh more frequently, giving you a better idea of the most up-to-date prices. This can be useful in fast-moving markets like horse racing.

What is the purpose of the 'What If' figure on Betfair?

The 'What If' figure shows the potential profit or loss you would make based on the outcome of the event. It takes into account your stake and the odds, allowing you to see the financial outcome if a certain bet is successful or loses.

Why might betting on horse racing markets be more volatile than other sports?

Horse racing markets are more volatile, especially in the final minutes before a race, due to the high number of last-minute bets and changes in odds as traders and match bettors adjust their positions. This can lead to significant fluctuations in back and lay odds.