One phrase that keeps popping up in horse racing circles these days is "Risk free betting." It is a wonderful idea in theory but is it possible in practice? It is if you believe some of the hype, but what exactly is it all about?
Other terms that you may come across are "arbitrage" and "trading". The dictionary describes arbitrage, which is a stock market term as, traffic in bills of exchange or stocks to take advantage of rates of exchange in different markets". In betting terms arbitrage, or trading, means backing a horse at a higher odds and laying it for a larger amount at lower odds. This guarantees that what ever the result you will make a profit on the bet.
It is quite important that you understand the difference between risk free betting and arbitrage. Not unsurprisingly with arbitrage you are not interested in a horses form or even its chances of winning or losing. The trader is purely interested in value and price. They are looking to back a horse at one price and then lay it at another to ensure whatever the outcome they will make a profit. To achieve this they balance th odds with the amount they invest. This allows them to make small but regular profits.
In risk free betting you are looking not so much for a guaranteed profit but to ensure that you will not lose any money. That way when you win you profit and if the horse fails you do not actually lose anything.
To achieve this you will normally be looking for a first or second favourite that you think will win.. Having found the horse you should be looking to see if the price of your selection is liable to come down. If both these factors are present you could have a risk free betting opportunity.
If you have ever visited the Betfair betting exchange online you will know how volatile the prices can be, especially just before the off. If you study the site you will realise that it is the weight of money being wagered that controls the rise and fall in the odds of the respective runners.
In an over simplification, if there is more money waiting to back a horse than there is to lay it then the odds are more than likely to fall. If the reverse is true and more cash is waiting to be laid than backed the price will rise. By studying the markets it is possible to anticipate these moves and this is basically the premise on which "risk free betting works".
For example, you think the favourite will win a race. It is priced at 3.0 (2/1) so you back it to win at £100. If it wins you will get £200 if it loses you lose £100. The horse price then drops to 2.5 (6/4) and at this stage you lay it £100 top lose. Now if it wins you will get £200 less £150 you lose on the lay bet (£100 at 2.5 = £150) and you make £50 profit. If the horse loses you lose your £100 win bet but make £100 on the lay so break even..
Betting in this way will make you small but steady profits once you become proficient at reading and predicting the betting market. However, there will be occasions when you do get it wrong. The price of your horse goes in the opposite direction to the one you anticipated. It is then going to be a judgement call as to whether you cut your loses or ride with the original bet in the hope that it comes off.
There is no such thing as a totally risk free betting, The word betting implies an element of risk but as many smart players have proved if you are prepared to study Betfair market you can get very close to risk free betting.
Other terms that you may come across are "arbitrage" and "trading". The dictionary describes arbitrage, which is a stock market term as, traffic in bills of exchange or stocks to take advantage of rates of exchange in different markets". In betting terms arbitrage, or trading, means backing a horse at a higher odds and laying it for a larger amount at lower odds. This guarantees that what ever the result you will make a profit on the bet.
It is quite important that you understand the difference between risk free betting and arbitrage. Not unsurprisingly with arbitrage you are not interested in a horses form or even its chances of winning or losing. The trader is purely interested in value and price. They are looking to back a horse at one price and then lay it at another to ensure whatever the outcome they will make a profit. To achieve this they balance th odds with the amount they invest. This allows them to make small but regular profits.
In risk free betting you are looking not so much for a guaranteed profit but to ensure that you will not lose any money. That way when you win you profit and if the horse fails you do not actually lose anything.
To achieve this you will normally be looking for a first or second favourite that you think will win.. Having found the horse you should be looking to see if the price of your selection is liable to come down. If both these factors are present you could have a risk free betting opportunity.
If you have ever visited the Betfair betting exchange online you will know how volatile the prices can be, especially just before the off. If you study the site you will realise that it is the weight of money being wagered that controls the rise and fall in the odds of the respective runners.
In an over simplification, if there is more money waiting to back a horse than there is to lay it then the odds are more than likely to fall. If the reverse is true and more cash is waiting to be laid than backed the price will rise. By studying the markets it is possible to anticipate these moves and this is basically the premise on which "risk free betting works".
For example, you think the favourite will win a race. It is priced at 3.0 (2/1) so you back it to win at £100. If it wins you will get £200 if it loses you lose £100. The horse price then drops to 2.5 (6/4) and at this stage you lay it £100 top lose. Now if it wins you will get £200 less £150 you lose on the lay bet (£100 at 2.5 = £150) and you make £50 profit. If the horse loses you lose your £100 win bet but make £100 on the lay so break even..
Betting in this way will make you small but steady profits once you become proficient at reading and predicting the betting market. However, there will be occasions when you do get it wrong. The price of your horse goes in the opposite direction to the one you anticipated. It is then going to be a judgement call as to whether you cut your loses or ride with the original bet in the hope that it comes off.
There is no such thing as a totally risk free betting, The word betting implies an element of risk but as many smart players have proved if you are prepared to study Betfair market you can get very close to risk free betting.
