I tried a bit of cricket trading on Betfair in an attempt to make some money pre match in the game between Hyderabad and Pune on Friday.
On Thursday night Pune could be backed at 1.68, they were available to lay at 1.69. I placed a lay bet up at 1.67 (£150.00, with a liability of £100.50), and went to bed. I often do this when trading football matches, and it’s amazing how many times my bets get matched and I can trade out for a profit first thing in the morning.
When I checked on Friday morning my bet hadn’t been matched and Pune had drifted out to 1.76. Then about two hours later I checked back and Pune had gone back in to 1.69, this just highlights how prices can fluctuate throughout the day for (what seems to be) no apparent reason.
The trick is to try and be on the right side of these price movements. They only need to be one or two tick movements to make money (1.69 – 1.70 is a one tick movement).
You might ask why I didn’t just take the lay price of 1.69 in the first place? And that would be a fair question, because if I had taken the lay price on Pune at 1.69 on Thursday night, I would have been in profit by Friday morning.
There is a good reason why I didn’t take the 1.69, and that is because I never normally take the available price, I usually place my lay bet one or two ticks below the available lay price.
Price movements of the nature (1.69-1.76) aren’t that common, a tick or two, yes – but not seven ticks. That’s why I lay a tick or two below the available price. This gives me more opportunity and leverage with price movements. Also, the current price could be the true price, so there is no point laying at that price, as you would need to laying below the true price to get a profit.
As a result of this, sometimes I miss out on trades such as this one. I find it is better to be a touch cautious when placing a lay bet, I believe it is better to miss out on the odd trade, rather than laying at a price that is too high.
During the week it’s hard for me too get involved in any IPL betting in running as the matches are played while I’m out at work. Trading them in this way gives me a chance to make some money on them, ok, so it’s small amounts, but any profit is ok by me.