Every sports lover’s dream is to earn money through their passion, to satisfy two different needs simultaneously, and combine the useful with the enjoyable. Sports trading is a way to reconcile two seemingly distant worlds, such as sports and investing.
Although sports trading is quite different from online trading, it is also different from classic sports betting. So let’s find out how it works, what strategies people use mostly use, and how to become a sports trader.
What is sports trading?
Sports trading is an investment activity that involves trading sports odds. These odds fluctuate over time and become more pronounced during the match.
The sports trader takes advantage of the change in odds to profit at the expense of another trader who has executed a diametrically opposite trade.
Those who invest in making a profit with the sports trader do not interface with a bookmaker but with other users engaged in buying and selling odds. In fact, in this industry, it is not accurate to speak of a bookmaker because the intermediary figure does not exist. However, it is possible to trade sports only on special platforms called betting exchanges.
Although the word trading can be misleading, sports trading is a very different activity in online trading. Those who trade online engage in the trading of financial assets and contracts, while in the case of sports trading, the object of exchange is the odds of sports competitions.
How does it work?
We can execute two types of trades:
- Tip. It consists of opening a buy (long) position of a share;
- Bank. On the other hand, it represents the opening of a selling (short) position of a share.
The betting operation is relatively simple to understand because it is similar to placing a bet. But, on the other hand, when banking the stake, the trader acts as if he were a bookmaker, taking a higher risk, which may even exceed the stake entered.
Typically, after you bet or bank, when the match begins, you exit the position to make a profit. However, the course of the match can also be unfavorable to the trader’s trade, which will incur a loss in this case.
Swapping trades during the match is only possible if another trader on the platform is willing to take it on. However, since these platforms are populated by many traders, finding someone willing to buy the share is relatively easy.
Sports trading strategies
Those who trade sports follow concrete strategies, which require the need to study well the opposing teams and the news surrounding the match. One of the most widely used techniques in sports trading is scalping, which involves betting and banking several times during the match to profit from changes in the odds.
Chasing changes in the odds is an activity that requires speed and accuracy. The difficulty is also related to platforms needing to update the odds immediately, and several mouse clicks are needed to manage the trade.
To overcome these problems, sports traders use software that simplifies trading. In this case, fewer steps are needed, and they can bet and bank more quickly and without mishaps.
There is also sports trading via automated bots, which enter various positions based on preset parameters. The bots perform calculations much faster than the human brain and can give the trader a competitive advantage over other users.
Difference between trading and betting
As we have seen, sports trading is quite technical and different from simple betting. While the bettor relies on their sports passion and does no analysis to decide which odds to bet, the trader relies more on math than sports passion.
In betting, anywhere in the world, be it the United States or Thailand, the user places odds on any online sports betting, known in Thai as พนันกีฬาออนไลน์, and waits for the outcome of the match to determine whether they have made a profit or loss.
In addition, online betting platforms offer sports betting bonuses that members can claim. Also, they cover both new and existing players, such as a 100% welcome bonus, daily deposit bonus, weekly cashback bonus, loyalty points, and VIP program.
In sports trading, on the other hand, the trades entered can also be exchanged during the match, and it is at these stages the trades can become profitable.
Conclusion
Thus, we understood that while the sports trader buys and sells sports odds, even trading them during the match, the bettor spies the bet and waits for the outcome at the end of the game.
Finally, although the term trading may generate some misunderstandings, we now know that it is not a true investment activity.
