Let’s take care of the pennies and the pounds will take care of themselves…
One of the greatest benefit of the betting exchange is the possibility you have to set your own odds, whether you bet for or against a team or player.
Through this article, we will take an actual example illustrating the difference one cent can make on the long-term.
This is a picture of the available odds on Champions League’s football match between Leicester and Sevilla (market “To Qualify”). Sevilla are in a favorable position after their victory in the first leg.
You have the possibility to bet on the Spanish team at 1.31. A lot of bettors will not think twice and will decide to back Sevilla at this price. However, if you have a look at the money available, we recommend you to place a Back bet at 1.32. Indeed, there is only 55€ waiting to be matched at this price.
A trader willing to place a Lay bet will have two options:
–Lay at 1.31, but 2200€ have already been placed before him, he will need to wait for a total of 2200€ to be backed before seeing his stake matched at 1.31
–Lay at 1.32, and in that case 55€ will be matched immediately.
Many traders willing to place Lay bets do not necessarily have the patience to wait for several hours, and will rather sacrifice a cent to get matched straight away.
If you place a Back bet at 1.32 for 50€, the money available for a Lay bet will update from 55 to 105€. This is not a big amount so you have a good chance to be matched pretty quickly.
We recommend you to apply this strategy on the long-term. Indeed, one cent can make a significant difference on your overall winnings.
On a sample of 500 Back bets at 1.31, for 50€ each, a successful punter with a 2% ROI will win 498€ (after commission).
If the same punter manages to obtain one cent better each time, at 1.32 he would win 687€… this is 38% better! Only one cent on each odds increases his winnings for an extra 189€.
Of course, managing to be matched every time only happens in a perfect world, but this example is very telling about the importance of the odds, and once again shows you that placing your bets on the betting exchange is essential to boost your profits.
Any questions or comments? Please use the box below, we will happy to answer.