Sports betting is a very common activity among conventional punters, as opposed to sports trading. Only a select few are aware of the concepts of sports trading and how it works, and no, they are not the same.
Sports betting is simply staking on the outcome of sports events whereas sports trading is a step further. The trading element only exists when an exit strategy is introduced into play.
Now, whichever activity you prefer to engage in, it is important to always know the basics of what you’re getting into. So view this write-up as a Trading Academy where you get to learn about the basic concepts of sports trading and betting. Let’s take each of these aspects one after the other.
Sports Trading Broken Down
What Is Sports Trading?
Sports trading is the practice of exchanging wagers on sports events or the act of pitting two bets against each other. In sports trading, the aim is not to predict who wins but rather, in what direction the price changes. In this regard, sports trading is quite similar to stock trading.
How Does It Work?
To trade in sports, you need a conducive exchange platform where other traders gather to place bets with each other. The exchange serves as the referee while you get to place both back bets and lay bets at the same time. In essence, the matching behind a successful trade goes thus;
- Opening A Bet: When you open a trade with the aim of success, it means you already have a reason to expect a price move. Either that or you at least expect both bets to match. So when you are confident that the price will shift, you then open a trade by placing a lay bet.
- Closing Bet: Once the price shifts in your favored direction, this gives you an opportune position. Now, you have a wager that is of value when compared to the current market price. All that’s left for you is to trade out of the position by closing the initial bets’ liability. In doing so, you now have a position where you get a profit without the risk of a loss.
Sports Betting Explained
What Is Sports Betting?
Sports betting is a term that simply refers to the activity of staking on the result of sporting events. Here, punters or bettors try to foretell the outcome of an event in order to win a bet. And if they predict correctly, they earn some money as winnings.
What Are Odds and How Are They Calculated?
In simple terms, betting odds represent the probability of chances of the varying outcomes of a sporting event. For instance, 2.00 odds denotes that there’s a 50% chance the event will happen. So it is essentially a representation of the perceived frequency of an event gotten from the probability that enables betting. Now, one may ask, how are these odds calculated?
Odds are calculated based on three major formats. These formats include:
- Decimal Odds: This is the easiest format mainly because it is equivalent to the expected payout for each wager. For instance, if a bettor stakes $10 on a 2.5-odd game, the return the punter gets will be $25 if it’s a win. So for every unit staked, he gets 2.5 units back.
- Fractional Odds: This bet type is a little more complex and it is usually denoted with a “/“ with numbers on either side of the slash. It is quite similar to decimal odds but it has a twist to it. The number to the left of the slash is how much you will win if successful while the one on the right is how much you must stake.
- American Odds: In certain regions, this format is more popular there, denoted as a plus or minus sign. If it’s a positive number, then that’s the amount of money you will win if you stake $100. But if it’s a negative number, that’s what you must wager to make a $100 profit.
Different Betting Types
In sports betting, there are several different types of wagers you can place. But the most popular ones are as follows:
- Spread bets
- Total Bets or Over/Under
- Moneyline bets
- Multiple Bets or Accumulator or Parlays
- Outright Bets
Wrap Up
Sports betting is fun for those who engage in it but sports trading is just as much fun. Depending on which option you prefer, they are both very lucrative and have high potential turnovers. So have your pick and take part in the fun.