Betting exchanges explained
Learn how a sports betting exchange works, then try exchange betting with bitcoin at Cloudbet, putting you in control of both your betting and your money.
Trading on a sports exchange
Trading on sports exchange markets is similar to financial trading. The objective is to simply back (buy) at the highest odds and lay (sell) at the lowest odds in order to gain profit. When the sporting event finishes, you will have hopefully traded your way to a guaranteed profit or a no-lose outcome no matter what the result of the event is. If you trade bitcoin or other cryptocurrencies regularly, then the concept will be very familiar to you, but now it’s time to try it on a live sporting event!
The term betting typically refers to betting on a fixed odds market, where a yes or no outcome determines the success of your bet, whereas trading reduces the importance of the final outcome. You can place unlimited bets on an exchange market in order to manage your position and maximise your opportunity to be profitable during the match.
Like financial trading, It's very difficult to win on every transaction, however by sticking to a chosen strategy you will give yourself the best chance to trade successfully on a regular basis.
Unlike household betting exchange sites such as Betfair, Betdaq and Smarkets, we offer 0% commission on our exchange style cricket match odds market as well as our standard fixed odds book. With the IPL in full swing, there is no better time to try out cricket trading with us using bitcoin or bitcoin cash. We have unrivalled odds and fantastic 1% margins so you have the maximum opportunity to gain a return on your investment.
Now let’s take a look at how do they work, and how to actually make a profit while trading on a betting exchange.
How does a betting exchange work?
First we need to find the list of IPL cricket matches so we can look to trade on the exchange markets and start backing and laying to make a profit. Click through to the cricket page and continue on to the IPL matches.
Once you have navigated to the IPL matches, you’ll see back prices pictured in blue and lay prices pictured in red. The term back means that you are betting for the team to win, while the term lay means you are betting for the team to lose.
There are many methods of trading that you can benefit from, with the below being the easiest to get your bitcoin sports trading underway.
For example, if you were to back Delhi Capitals at 2.16 for 10mBTC at the start of the match, then your return including the stake if they were to win would be 21.60mBTC. If Delhi then get off to an amazing start and their odds shorten considerably, they will become favourites in the match and this is your opportunity to lay at lower odds than the price you backed Delhi at the start.
Once Delhi hit odds that you are willing to trade at, then you would lay them to guarantee yourself a no lose situation, no matter what the outcome is! In this example, if you now laid Delhi at 1.6 for 10mBTC then you would win 16mBTC if they lose, but you would lose your 10mBTC stake if they win. A summary of the bets discussed are below:
Back Delhi at 2.16 for 10mBTC = 21.6mBTC
Lay Delhi at 1.6 for 10mBTC = 16mBTC
This means that you would receive 5.6mBTC (21.6mBTC minus 16mBTC) if they won and you wouldn’t lose anything if they lost! This is because the stake size of 10mBTC on both the back and lay side is exactly the same!
Betting exchange systems
A traders mindset isn’t solely focused on the final outcome of the event, it’s to find periods within an event where profits can be made. Similar to financial or bitcoin trading, the best way to win consistently is to have a system and stick to it. It’s easy to get carried away by thinking the odds or price of your selection will keep increasing or decreasing in your favour, when in a matter of seconds your fortunes may have reversed and you missed out on a great trade. Here are some odds driven examples showing the profit you would gain from each.
Back the fast starters
Back at 2.0 for 10mBTC then Lay at 1.8 for 10mBTC = 2mBTC, no lose outcome
This trading strategy is likely to be used pre match when the teams are priced evenly at the start of the contest. If you think one team is likely to make a fast start then back them before the event starts and lay them during the match when they become favourites. Use this option if you think the selection is a fast starter and their odds will reduce early on.
Lay the favourite
Lay at 1.1 for 10mBTC then Back at 1.5 for 6mBTC = Win both ways
If you see a short priced favourite that you think may slip up, then lay at low odds when they look likely to win and then back them once they start slipping up and the odds drift. By backing at higher odds and selecting a smaller value (6mBTC instead of 10mBTC), you are guaranteeing profit on either side, whatever the outcome!
Back an Outsider
Back at 8.0 for 10mBTC - Lay at 5.0 for 10mBTC = 3mBTC, no lose outcome
If you see an unlikely winner that has the potential to make the game closer, then back the outsider at high odds before laying them when they start to improve their performance. They may not win the contest, but since you have traded your position then you won’t lose any money and it’s a bonus if the team comes back and wins!
There are a number of factors that can affect your cricket and IPL trading. With tight margins and fantastic odds, your trading will secure profits at an improved rate with Cloudbet. Here are some in-game circumstances to consider when trading on cricket.
If a batsmen is under pressure from the bowler and looks likely to be dismissed in the near future then make sure you back the bowling side. Then if the batsman is dismissed, the odds will drop for the bowling team and you can then lay them at smaller odds than your original back price.
Required Run Rate
The required run rate is a very important barometer for T20 cricket and provides one of the best measurement tools to see if the team batting second can outscore the team that batted first. If you think the RRR is achievable then back the batting team early and as they come closer to reaching their target, you should be able to lay them for a nice profit.
In form players
Players that are performing at a high level throughout the tournament or even in-play during the match should factor in your trades. If a batsman or bowler looks to be entering a hot streak then back the team he plays for early, before he does the damage to his opponent and then lay the same team for a profit.
These are some of the basic factors to look out for when trading on cricket, but there are a variety of edges that you can possess to give yourself the advantage you need to win. Ultimately it comes down to personal preference as to how you trade cricket and how you envisage the outcome of the event. Good luck on trading with us at Cloudbet!