One of the most under-utilised tools of a betting exchange, is being able to make money, from predicting price movements.
In the same way as you might buy a share low, and sell it high, this process works even better on betting exchanges, as there are no transaction costs.
In the 2nd Ashes test, I fairly quickly accumulated a position against Australia, after the end of the 1st test. I laid Aus, at average 3.7, for a stake of £4000, giving a liability, of £10,800.
Aus – £10,800
Eng + £4000
Draw + £4000
The Australia price is currently moving out (or drifting, as it is known), to about 4.0.
I could buy back my liability, at this better price, and currently lock in profits, of about £300, before a ball is even bowled (the game is 3 days away), so that who ever wins/draws/loses, I win £300.
Often, it’s not about who wins, but what the market will do.
A day later, and the market has reacted favourably to Aus including Bollinger and Harris. Current prices :
Draw is v firm, with Eng being weak. The paper profits we had on the market move are now gone.