Live Tennis Trading - April 1 - Bank: $2249.43    Month 3 P/L: +$1249.43    Week 12 P/L: +$649.93
Follow me on Google+! Follow me on Facebook!

What is Tennis Trading?

Betfair tennis trading markets

Betfair tennis trading markets.

Tennis trading is on the rise at the moment and I’m writing this article in order to explain to all newcomers what the tennis exchange is all about. All of us must have already heard about Forex, Wallstreet or Stock Market trading, before finding out about tennis exchange. If Forex is using currencies for selling and buying, or traders on Wallstreet use shares and bonds for their transactions, in tennis trading we are using players’ odds to Back and Lay for profits.

Tennis Trading Markets
Basically each professional tennis match provides the opportunity to trade in a series of markets including: match odds, set betting, 1st set winner, 2nd set winner, total games and so on. Generally the best trading opportunities are provided by markets with high volatility and those markets are always the “Match Odds” markets, of each particular game. Of course, the more popular a match-up is the more traders it will attract. If a tennis match-up is popular it means that two favorites are battling for the win and thus there are higher chances of a balanced encounter. The more balanced the tennis match is, the more momentum shifts it will provide and thus, more opportunities to Lay low and Back high or vice versa are encountered.

Back and Lay
I’ve already mentioned backing and laying a few times, in this article, so it’s time to explain these terms too. Back and Lay are the equivalents of Buy and Sell in a Forex or Stock Market exchange. A trader has to “Back” a player before he expects his odds to contract, this means that the player will have a good run in the tennis match. He will successfully close the position, by “Laying” once he feels that the momentum of the backed player is fading.
The other way around if a trader feels that a tennis player will under perform at a given time during the tennis match he will open a position with a “Lay” (he bets against that player, expecting the player to have a bad run). After the player’s odds drift, the trader will close his position and perform a successful exchange by “Backing” the same player at higher odds, thus resulting a green-up (or a profitable trade).

Green vs Red Trades
The largest tennis trading markets are currently provided by Betfair.com. Betfair is the largest online trading exchange. They are the 3rd party that organize and administrate the tennis trading markets. When a trader backs or lays on Betfair, he is practically buying or selling odds from another Betfair operating trader. Basically, for a tennis trade to occur you need the exchange and at least two traders that are judging a tennis match in opposite ways. It’s obvious that all players in a tennis trading market aim to earn profits. This means that in order for an exchange to happen a tennis player has to be judged differently. Meaning that you need a trader to think that he is on a winning run, while a second trader has to assume the other way around. This way the trader that assumes that, for example Andy Murray is playing better than Novak Djokovic, will “Back” Murray. with the intention of “Laying” him at a later stage of the match. In the same time another trader that feels that it’s Djokovic’s momentum, will aim to “Lay” Murray with the hope to “Back” him at higher odds and thus generate profits. Whoever gets it right will achieve a green trade (profitable trade), while the other will have to settle with a red trade (a loss).

In-Play Tennis Trading
All the above situations have been presented for in-play tennis trading. That’s trading during live tennis matches. Tennis exchange also occurs before a match starts, but volatility is low before going in-play and there are no significant price changes, which means that it is significantly harder to make profits before the first serve. Successful trades can be made during live tennis matches in only a few seconds as price fluctuations are very high and numerous opportunities arise. Professional tennis traders usually back and lay tens of times during a match, whenever they spot a profitable trading opportunity.

Conclusion
Tennis trading is an exchange that allows a trader to buy and sell players’ odds, during live tennis matches, in order to obtain financial profits once the position is closed.
Tennis trading can be a very profitable money making opportunity. However, you need a lot of experience, perseverance and discipline in order to succeed. As in any trading activity, whenever you expect to earn a lot of money, do consider that there is also the opposite way around. The big difference though between trading tennis and trading on Forex or Stock Markets is that you know that a tennis market will end at some point, depending on the rules of the match. It will end either after 2, 3, 4 of 5 sets are completed. So you know what if you are on a losing streak, you need to close your position before the match ends. If you risk and wait for a last minute comeback you can lose your entire stake.

If tennis trading sounds interesting for you and you wish to give it a try you should also read about basic and advanced tennis trading setups, to get you started the proper way.

You can leave a response, or trackback from your own site.

Leave a Reply