Betfair Exchange Trading – Scalping
Scalping is one of the most popular strategies used to make money Betfair Exchange Trading. Scalping involves backing a horse at a certain price and then laying it at a lower price as soon as is possible, often taking one tick profit, and then repeating the process.
What is a tick?
The chart below shows what a tick is worth at the various Betfair prices:
|0 to 2.0||0.01|
|2.0 to 3.0||0.02|
|3.0 to 4.0||0.05|
|4.0 to 6.0||0.10|
|6.0 to 10||0.20|
|10 to 20||0.50|
|20 to 30||1|
|30 to 50||2|
|50 to 100||5|
So if I back a horse on Betfair Exchange at 4.2 then I would look to lay that same horse at 4.1. If I do that with a £10 stake then my profit is £1 on that horse if it WINS.
However, in scalping, the trader looks to repeat the process over and over before the race starts. So let’s say I managed this scalp 30 times I would have built a profit of £30 which I would be paid if I left it like that and the horse won. The trader though wants certainty so he will ‘green up’.
What is “greening up”?
Greening up is the process where you take the profit you have earned on making a trade(s) on one horse and spread that profit evenly over every horse in the race as below:
So If I had made £30 profit on a horse at 4.1, if I could green up I would get about £7.30 no matter what horse won if I did at 4.1.
Another way of “Greening Up” is to use the CASH OUT button. This gives you less than the £7.30 above, but is quick and means you don’t spend time trying to work out what stakes need to be used.
How to Scalp Successfully
There are certain tools needed to scalp successfully. When we say scalping successfully it means getting a profit as often as you can with the lowest risk possible. There are FOUR things you can do to make this happen:
- Assess whether the horse to be scalped is over or under weighted in the market
- Identify trading corridors and support levels (understand when a breakout is happening from these corridors and what to do about it)
- Assess the Weight of Money being traded on your horse as back money and lay money.
- Scalp where the profits are the greatest.
I have done a series of Youtube videos that address the above:
Scalping and Trading Software
Scalping on Betfair Exchange is best done using one of the software packages available. The best known of these are GeeksToy and BetAngel. You can try them out for a trial period for free. If you want to know more we have a blog with a greater analysis of which software might suit you (beginner etc) here.
Other Betfair Exchange Trading Strategies
If you want to know more about Betfair and the different ways you can make money trading it then visit the InsideTraxs YouTube Channel
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