Sports activities Buying and selling: What It Is, How It Works and Methods

Sports trading can be considered an innovation of classic online trading . Sports enthusiast traders love it, but even those who are not really passionate sportsmen appreciate this investment sector which can lead to interesting returns. In this guide we will see what it is actually and what can be the advantages of doing sports trading.

What is Sports Trading

Sports trading is a type of investment that combines two apparently different worlds, that of sports betting and predictions with financial trading . The origins of sports trading are English and the first platform that launched it is BetFai. In Italy sports trading began in 2014 with the arrival of the betting market, the Betting Exchange. The similarities between online trading and sports tradingthey are a lot. In sports trading, assets are replaced by sports betting odds relating to the race on which you intend to invest. The odds can then be exchanged during sporting events, considering that they may undergo variations in relation to the progress of the race.

How does it work

The concept of the change in prices during the performance of the sports competition constitutes the very essence of sports trading. With sports trading you buy your share with the aim of reselling it at a more favorable price in order to get your profit. The main feature is the volatility of sports competitions and the speed of operations carried out during live sports events. 

To better understand the function of sports trading it is appropriate to proceed with an example in such a way as to be as clear as possible in the explanation. In sports trading the assets are replaced by sports bets and the price in this circumstance is given by the odds . Let’s imagine an Italian league football match and the prediction is that of a draw with odds of 3:00. The sports trader starts his first move by buying the stake related to the breakeven. As in any other financial market the trader will have the possibility to sell or buy or raise his share until the end of the game.

Types

Sports trading is applied to many types of sports, undoubtedly the most used is football, but there are also tennis, Formula 1, boxing, horse racing, basketball, football, rugby. In Italy it is possible to do sports trading only on football and tennis.

Difference between Trading and Betting

Trading and betting are two different concepts. In particular, you can say that you are trading when you close a position during the sports competition, whether it be a positive close or a loss. The sports trader carries out exchanges . Those who place sports bets, on the other hand, operate with a profoundly different criterion. Whoever makes the bet usually does so on the basis of sporting passion and not so much following calculations and technical evaluations. Furthermore , the bet is not exchanged and remains the same until the end of the match. 

Advantages and Risks

The prices of online trading change constantly, this is certainly the advantage but also the main risk for the sports trader. Thanks to the element of price volatility , the trader will be able to activate his own winning strategy and obtain important profits. 

It should also be remembered that if on the one hand with sports trading you can obtain considerable profits, on the other it must be kept in mind that sports trading bets can be compared to assets, but in particular to volatile assets, so this implies the existence of a certain level of risk to which in any case you will be subjected. Then we recall an important advantage of sports trading: fun . If you are passionate about sports it will be a pleasure to enjoy the match of your favorite team and at the same time be able to make a profit thanks to your passion. A sportsman will hardly find the same enthusiasm in traditional trading. 

The Online Platforms

To be able to do sports trading you need to use one of the many platforms that offer this service and open your own gaming account. The platforms are betting exchanges . Among the most famous platforms is the mother of sports trading, Betfair.it , which allows you to bet against other players then it is necessary to remember Betdaq , Smarkets , Ladbrokers . In Italy , on the other hand, the accessible platforms are Betfair exchange and Betflag . 

Minimum Capital Needed to Get Started

If this is your first time approaching the world of sports trading you may be wondering how much you need to invest to start trading. In reality, especially if you are a novice sports trader, you don’t need large amounts to start , but we can say that having an account of 500 or 1000 euros is a good start to explore sports trading but at the same time accrue interesting profits. The secret to being able to obtain excellent results, however, is to sufficiently top up the account before the start of a match in order to have the peace of mind to operate at best during the live match.

Sports trading is therefore a great way to combine a passion, that of sport, with the possibility of making a profit.