This article tries to explain why Exchange Trading is best when it comes to using Betfair to make money.
The video below takes you through the PROs and CONs of Match Betting, Arbing and of course pure gambling.
People often say “It’s all just gambling isn’t it?”
Well the answer is definitely “NO! It is not”.
As summarised in the table below a gambler is someone who has a black and white view of the world; did I win or lose?
If he wins he wants to win big and if he loses he wants to lose small. Therefore gamblers have losing days when they can’t “buy a winner” and winning days when that 33/1 shot came in or that accumulator hit. However gamblers are always up against it because when they win the bookie won’t give them the true odds that reflects the risk.So over time the vast majority of gamblers lose and all bookies win!
|Gambling||Wants multiples of stake as returns
Wants to land big priced winners
|Low||Low||Determined by Bookie
Need to beat the odds
|Matched Betting||Looks to take “No Risk”
Views what do as “Free Money”
Returns are a % of stake
|Low||Should be 100%||Determined by you|
|Arbing||Like Matched betting||Look for inefficiencies in the market||Low/Med||Should be 100%||Determined by you|
|Trading||Returns are a % of stake
Often any positive will do
|Built on strategy
Driven by value
|Depends on strategy||High||Determined by you|
So what about Matched Betting? It’s ingenious you just follow the terms and conditions on a bookies promo and “Bob’s your Uncle” the generous bookie will give you a free bet or an extra place which is your profit.
Well Match Betting does work and we at InsideTraxs operate a System (called System 200) which uses match betting principles to turn bookies introductory FREE BETS into CASH.
However the introductory offers are the most generous and easiest to do. For existing customers there are always offers but they are small and you need to know where to find them. So Match Betting is difficult to scale. You also need to have a lot of accounts open and finally if you do get good at it then some bookies will try and close you down.
So Match Betting has it’s place in my opinion as a way of building a bank courtesy of the bookies which you could then use to start trading or just take away as cash. It could, with some effort, also provide some extra money in exchange for some of your spare time.
Arbing is a little more specialist and relies on the person doing the arbing knowing what they are doing. The arber looks for inefficiencies in the market so that they can get a better back price from one bookie and a better lay price from another (often an exchange) and make money on the difference.
Once again it is quite difficult to scale arbing as the opportunities are often limited by the bookies eg here’s a great price but max bet is £10!
Also arbing means having a lot of accounts with many small bets which takes some managing. If you get good at arbing there is always the chance of being closed down by the bookies.
Don’t get me wrong there are some successful arbers out there but it’s not easy money.
I am of course going to promote Exchange Trading as it is what I do for a living.
However exchange trading does have several advantages:
- It’s scalable and can be done with small or large stakes by beginners or experienced people
- It’s based on strategy – (see video what exchange trading strategies there are and which one is for you with blog page here)
- Risk:Return ratios are determined by you based on your value judgement.
The downside versus arbing and match betting is that there is some risk to exchange trading where the other two try to be risk free.
Having said that the risk you take is known and you should and must manage that risk.
GOOD LUCK whatever you decide to do.
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