What is Tennis Trading
What exactly is tennis trading and how can you make money from it?
The short answer is...tennis trading is a way of making money from the movement in player's betting odds. But how does this work?
As you know, the chance of a tennis player winning a match will vary based on how well they are playing.
And the probability of them winning is expressed in the player's betting odds. The greater the chance of them winning, the lower the odds
So if a player is playing well and it looks like they're going to win, then their odds will fall (also known as shorten).
But if a player looks like they are going to struggle in a match, then their odds will go higher.
So as the odds move up & down for each player during a match, this gives us the opportunity for us to place two trades:
1. One trade for the player to win the match when the odds are high
2. One trade for the player to lose the match when the odds have fallen
Why do we place two trades?
Because by placing a trade for the player to win the match AND another trade for the same player to lose the match, we know that one of the trades will always win.
So how do we make money?
We need to make sure that the payout on our winning trade is higher than the loss on our losing trade.
How do we do that? Let's look at an example to see how the payouts works:
The odds define what is paid out on a winning trade.
So 1.8 odds means for a £10 stake, the payout will be £10 x 1.8 = £18.00
As this includes getting our stake money back, our profit is the difference: £8.00
Who pays the winner? OK, for every trade there are just two sides:
a Backer - Who thinks the player will win the match
a Layer - Who thinks the player will lose the match
So if the Backer wins, the layer pays (in the above example the layer pays out £8.00)
Or, if the layer wins, the backer pays (in the example above the backer pays £10)
So now we understand that payouts are simply the odds x the stake money, let's calculate the payouts from our two trades
1st trade: We backed Player A to WIN the match for £10 @ 1.8 odds
So if Player A wins, the payout will be £8.00 (which will be paid by the layer)
But if Player A loses, we lose our £10 stake money (which will go to the layer)
2nd Trade: We backed (actually the correct term is layed...but let's stay focused) Player A to LOSE the match for £14 @ 1.3 odds (why £14? I'll explain further down the page)
In this case, if Player A loses the match, we win £14 (paid by the backer)
But if they win the match, we lose our trade and have to payout £4.20 ( we pay to the backer)
If Player A wins the match, our 1st trade wins but our 2nd trade loses
1st trade winnings = £8.00
2nd trade losses £4.20
netProfit = £8.00 - £4.20 = £3.80
If player A loses the match, our 1st trade loses but our 2nd trade wins
1st trade losses = £10
2nd trade winnings = £14
netProfit = £14 - £10 = £4.00
So, by placing two trades at different odds, we will make money if Player A wins OR if Player A loses the match!!
How good is that?
OK...let's explain why the stake value on the 2nd trade was £14 and not the same as the £10 we used on the 1st trade ...
It's because the payout on losing the second trade at odds of 1.3 is less than the payout on the 1st trade at odds of 1.8, so by increasing the stake value your loss we can alter the payouts and make sure our winnings on each outcome are greater than our losses.
Tennis trading is similar to other marketplaces like stock exchange or foreign exchange where traders make money from 'buying & selling' at different prices. In tennis trading we have 'backers & layers' who make money from the movement in the prices of the player's odds.
The goods news is that tennis trading, unlike forex or stock markets is predictable!
Absolutely anyone can learn to make money tennis trading as long as you study, practice and take it seriously...in other words don't expect instant profits like a lottery!!
It's a great way to earn a living!