Liquidity in Sports Trading - what is liquidity at Betfair?
Liquidity is one of the most important concepts of Sports Trading, as your betting opportunities are related to it.
In a nutshell, we can understand liquidity as the facility you have in place a bet enter and be matched .
But what do you mean? Calm down and let us explain!
In this article we bring good examples from Betfair , so that you fully understand what liquidity is in Sports Trading.
After reading it you will know how to better filter which events are worth betting on and which you should stay away from!
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What is liquidity in Sports Trading?
We said liquidity represents how easy it is for you to place a bet and get matched, right?
This is because liquidity is nothing more than all money invested so far at an event or in a particular market.
Take Arsenal and Liverpool in the Premier League.
The bigger the event, the higher the liquidity at Betfair!
We see on the Betfair display the matched value in US Dollar (NZD). It is 1 million, 31 thousand and 571 Dollar (NZD) .
This matches the value that is matched in moment and not to the total amount that has already been bet so far.
This amount varies from second to second as traders place and withdraw their bets. Especially as the time to start the game approaches.
But why is this so important?
Liquidity increases the probability of the bet being matched in the entirety of its value. This does not guarantee that there will be profit or loss, only that the bet will enter.
You may not want to bet $ 10k on a Thai 3rd Division game, for example. There won't be enough people playing for the bet to be matched.
This is due to the principle that in Trading you play against other bettors, not against the House.
When we have a lot of liquidity we know that there are several bettors on the other side.
Soon it becomes easier open and close bets faster . This provides a good basis for the strategy of the Scalping !
Now if liquidity is low, you can get "stuck" in a bet, as you will have greater difficulties in closing it. Or it may not even occur...
The importance of matched bets
As we have seen, liquidity is related at Betfair to matched bets. Let's understand what this means.
Note that the market matched odds for Brighton vs Newcastle is only $80. A very low value and that indicates that it is not very worth investing money here.
- The explanation is as follows: there are few bettors interested in this game.
You can open a bet and not have anyone match it at the right time. As in Trading timing is very important, your profit chances depend on it.
On the market “ Do both teams score? "see that the matched is 0. Even worse, right? So in terms of liquidity it's good to get away from these events.
Liquidity serves precisely to avoid bad bets in Trading!
Returning to the example of Arsenal and Liverpool:
If you want to make an entry in favor at the odd of 4,1 in Arsenal's victory, immediately your bet will be matched if you bet up to $11,952.
But if you think it is better to bet $12,000, Betfair will give you a message saying that your bet has not been matched.
That is: you will have to wait for someone to match the amount, which can compromise the viability of your bet.
On the other hand, if you think that the best odd is actually 4.5 and not 4.1, you can suggest that odd. However it may take longer to be matched as well.
Conclusion
Understanding what liquidity is in Trading becomes easier as you bet on sites like Betfair.
And as you improve and gain experience as a trader, the more you realize that the best events and markets they are those with high liquidity.
Liquidity is an important factor in choosing which game to place bets on.
Beware only of wrong thoughts, such as:
- “If an event has a lot of liquidity, I will certainly profit!”
- “This market has low liquidity, so it has no value."
This concept does not determine winning or losing bets. It still has to deal with the choice of the outcome of the event, whether to Back or Lay, among other factors.
A good trader needs a lot of study and analytical thinking . So take the opportunity to read our educational articles about Trading:
- How it works Sports Trading
- Lay in the draw - How to do it?
- Trading vs. Punting - What's the best system?
- Banking Management for Trading
- Betfair Review
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- 700+ casino games & slots
- VIP program & regular promotions
- $1 minimum deposit
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User reviews
Hello, a question.
In case of lay bets, the amount shown in the box is the maximum amount you can put in that market, is this amount your responsibility or is it what you play how much you want to win?