Scalping

May 16, 2023

Scalping is an easy-to-use betting technique that takes advantage of small short-term price changes and changes from betting exchanges such as the Betfair Exchange. This method allows bettors to make small but frequent gains in different markets by taking advantage of the differences in available odds.

Scalping uses short-term price changes within exchange markets to make small, low-risk profits.

It assumes offering bets on both sides of an active market and hoping to match them at slightly different prices.

To execute profitable trades, it is always best to begin w/ the end in mind and consider possible outcomes before placing a bet.

Even with small profits, you can trade a lot quickly. For example, you might only make £3 in profit per trade, but with the right software, you can do this hundreds/thousands of times a day in every market on any given day.

Getting Started

When starting scalping, the first thing to do is to determine which market is best for you.

Horse racing is the most common choice, but scalping can be done with almost any sport on Betfair. Please be sure to familiarize yourself with your trading market before placing a bet.

One can look at how the odds fluctuate before and during the event. It will offer you the best idea of how much you can bet without taking too much risk and the best time to bet.

Scalping during an event carries additional risks. With horse racing, you risk having the horse you just bet on fall on the next bar before you can close your position, losing your entire stake.

How does it work?

Scalping is a short-term “in and out” trading strategy designed to make a minimal profit from small price movements.

To successfully execute a scalping trade, you must place two opposite bets on each other, usually one or two price increments apart, to guarantee a profit.

You can do this by offering a repurchase price slightly below the market rate, waiting for it to match, and then pricing it Slightly higher. You can then use software to ensure an average return across all outcomes.

Popular events with high stakes are best suited for the scalping method, as in the example below.

An example of scalping

Horse racing is a market favored by scalpers because it comes with a large, fast-moving market.

For example, if you bet on the same horse at the same time, you are betting that this horse will win and that the same horse will not win.

It doesn’t matter whether you bet first or first; ensuring you “offer” a price is essential. But supporting first means you don’t have a big responsibility to try and get rid of, which is probably best for beginners.

Once you match this price, you can “sell” your bet back into the market for a profit. It is usually only a 1-5 “point” difference; for example, support 3.25 and put 3.20.

Examples of football scalping:

Manchester City traded at 2.00 to win a game.

You bet £200 on Manchester City at odds of 2.02, want to see the market move, and bet £200 at odds of 2.00.

Once the two offers match, you’ll have a potential return of £400 if City doesn’t win but £404 if they win (excluding commission). So, in this case, Manchester City is the ‘green’ option for £4, with no liability.

You can use the software to ‘green’ your book and split your £4 potential profit equally among the three options on the market.

“Scalping” such as these can be repeated in liquid markets to increase your overall profits.

Scalping is all about anticipating rapid movements in market prices. For example, if a well-known broadcaster offers a tip about a horse race, more bets are placed on that horse, causing the odds to fluctuate.

Scalpers get in early and correctly predict price action. They exit the market as quickly as possible to limit exposure and risk.

Scalping software (link to Betfair Supplier Application page)

Advanced trading software is used by players who want to scalp as it makes it easier to place bets and removes risk from your books.

The main advantage of professional software is the speed with which it lets you place your bets.

“Exit speed” is important to scalping, which is something that scalping software offers and is worth investing in if you are committed to starting scalping.

You can choose to purchase scalping software and pay for its usage on a monthly or annual basis.

In-play Scalping

There are pros and cons to scalping, both pre-match and in-match.

Scalping is more of a high-risk, high-reward strategy. You can judge for yourself by watching how the odds fluctuate throughout events.

Odds vary more during an event than pre-event betting.

Before an event, changes in odds are often due to quantifiable events, such as a horse getting injured before a race. Based on this news, the odds will be adjusted and eventually settled at the new price.

You can profitably scalp ahead of an event if you know horse racing well and can quickly take advantage of the news about the race before it starts.

However, the market tends to get smaller ahead of the event and grow as the event approaches its start.

Most bets are placed Before the match starts, which causes new odds to fluctuate. It is the time that many scalpers choose to place their bets.

Before scalping, it is best to research and understand the market movement and how different Movements move differently.

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