What is Sports Trading?

What is Sports Trading?

The concept of Sports Trading is relatively recent, often mistakenly confused with activities related, or more closely associated, with the term “Betting” rather than the concept of Trading itself.

 I had to personally work on myself and the people around me at the beginning, in order to overcome prejudices and properly frame my activity.

Trading in the sports context is much more akin to buying and selling activities in the stock markets.

However, the difference is substantial, 

In Sports Trading, the objects of trade are represented by odds that reflect the performance of a sports event or a portion of it and change according to the changing likelihood of a positive outcome for that specific event.

The basic principle remains the same: buy low and sell high, capitalizing on the difference between the purchase price and the selling price.

What mainly changes are the context, and therefore the variables that can influence the fluctuation of a share.

I quickly learned that a Sports Trader is a professional specializing in investment related to the sports event market. 

Capable of interpreting the course of events, estimating the probabilities of a successful event or any changes in share value and understanding the potential fluctuations in odds.

Thus, correctly investing a portion of their capital to make a profit.

Difference between Sports Trading and Sports Betting

Let me provide a simple and fun image to illustrate the differences between Sports Trading and Sports Betting.

As children, many of us engaged in small “business” activities, such as organizing neighborhood garage sales or trading collectible cards or marbles with friends or classmates.

It’s needless to say how much these playful and primitive activities differ from running a business, organizing a small commercial venture, or even managing a small company.

Well, those involved in sports betting are like children engaging in these activities, primarily for fun.

When it comes to Sports Trading, what makes the difference is the psychological, methodological, and professional approach used to execute specific financial transactions.

These differences are direct consequences of different targets.

Playing, having fun, cheering for your favorite team, or trying to increase your monthly earnings by a few euros to afford an extra dinner at a restaurant are very different   targets compared to those professionals who aim to make this activity their job, profession, or primary source of income through a professional approach.

In the   other case, everything changes.

Of course, methods and tools change, but above all, the pressures and responsibilities to face change, regardless of the type of outcome that will be achieved.

Goals change, and therefore, everything else changes, even though, on the surface, these two activities may seem similar, just as someone using a saw for leisurely woodworking differs from someone using it to build a cabinet.

That’s why this blog does not discuss the technical execution itself (every professional has their own way and learns through experience) but rather how to know, understand, develop, and improve the true differentiating element between an amateur and a professional, the growth of one’s own mindset.

The Betting Exchange

This definition of Sports Trading immediately brings to mind the area for which it has become increasingly famous, called the Betting Exchange, also known as the “Sport Betting Exchange”. It’s a platform where each user can buy and sell odds related to sports events.

The most famous platform is undoubtedly Betfair, which, in recent years, has also spread its presence in Italy, allowing even amateur users to familiarize themselves with the punter/banker mechanism, through which you can buy or sell odds related to the referenced sports event.

Betfair is, an open market where users buy or sell shares one each other, and the platform operator earns a commission for any winning transaction (actually, for any transaction in general, because for every user who loses, there is always one who wins).

This platform is a recent addition only for the Italian market or for neophyte users, as any professional knows and has been using Betfair in its international version (Betfair.com) for many years.

I believe I created my first account on Betfair.com back in the early 2000s, a true revolution at that time in the professional field, especially for live management. In the subsequent years, the inability to have regular access due to restrictions imposed by the Italian government (to protect its monopolistic interests) was a decisive factor in my decision to leave Italy.

Even after 22 years, I still use this type of platform with profit and enjoyment, especially for my “tennis training” and for some important “live” moves, although this strategic approach has not been my primary focus for a long time.

Specifically, I no longer use Betfair.com because global restrictions have led Betfair to organize itself with connected platforms, developed by themselves, and to use the original platform only for markets regulated by the Anglo-Saxon license. 

In Slovenia, I use Orbit Exchange, essentially the younger sibling of Betfair.

Not Just Buying/Selling

However, Sports Trading is not just about buying and selling odds; it’s also an investment activity that may not necessarily involve resale.

A significant difference between the Sports Trading market and the financial market is that sports events subject to trading have fixed outcomes, meaning they reach a conclusion within a short time frame.

This is not the case when you buy shares in a company, where there is only a trend and never a final outcome.

The existence of a final outcome, therefore, is a differentiating element between the two types of activities and allows for an approach that does not necessarily involve the subsequent sale of the purchased share.

Currently, my main strategy is fundamentally linked to these types of movements and focused on selecting not the odds that may have a positive short-term fluctuation (Trading), but rather those that accurately reflect, or even better to my advantage, the probabilities of an event concluding with the expected outcome

This choice greatly affects my decision-making processes, especially those related to the evaluation of the purchase price.

My priority is to invest in an event that ends with the predicted outcome, where the purchase price is, of course, evaluated but secondary to the evaluation of the event’s outcome.

In the world of Trading, for example in Tennis Trading, which I often use as training (see dedicated section), the opposite happens: attention is focused on the purchase price and the possibility of a short-term trend that allows for resale. In this sense, the final outcome of the event (who will be the winner, for example) is decidedly less important.

This approach is in some ways more similar to that of a sports bet, although the type, method, and purpose of the transactions executed are very different.

In conclusion, Sports Trading represents an advanced, methodical, and professional way to interact with the world of sports odds. It’s not just about “betting”; it involves careful analysis of probabilities, understanding market psychology, and constant personal and professional growth.

In any profession, the artisan’s skill, not the tool, determines mastery. Amateurs may see the same odds as a bet, while professionals view them as investment opportunities.

The difference lies in the approach, preparation, and perspective.

As in any professional journey, the key to success lies not only in technique but also in continuous growth, adaptability, and, above all, passion for what you do.