Laying Chelsea’s advancing odds in today’s Champions League game versus Juventus has been a profitable investment for Betfair traders. I actually laid Chelsea’s win when it traded for 2.30 – I “bought” Chelsea win at 2.30 – and I can now trade out (sell) at 2.50 for a 6% gain. Yet, I will most probably ride the uptrend till the kick-off time as there’s no indication of the trend slowing down. My initial mental stop loss at 2.20 has been moved up to 2.40 in order not to turn a profitable trade into a losing one. That is one of the golden rules, not only in Betfair trading but in financial trading generally.
Calculating gain percentage
How to calculate that 6% gain I mentioned? According to the image above, I stand to risk €910 if Chelsea wins the match (known as liability in Betfair trading). Obviously I’m not going to let that happen as I’m going to trade out before the start of the football game. However, that is the total amount of money I used when entering the market. Much like when one buys 100 shares for $9.10 apiece – by the way, Betfair trading is like online stock trading. Closing my position at 2.50 means I stand to win €56 no matter the result of the game. Therefore, my gain of this trade would be about 56 euros out of 910, that is 6.15%.
How to predict a drifter
My prediction in Betfair trading is mainly based on technical analysis. I seldom read about news or rumors. A look at the Betfair graph showing the football odds movement is all that is takes before I decide whether I’m going to be investing in football trading. That is how I picked Chelsea as a drifter early this morning and I’m now able to take my profit long before the game kicks off.