Trading sports excellent online gambling agency can be a very profitable pastime and as an increasing number of people get involved that means just one thing... liquidity. With the invention of the betting exchange and also the rise and rise of the main one, Betfair, there is increasingly more money being traded on professional sports.

From horse racing to tennis and football to greyhound racing there are several markets to pick from and focus on. You will discover even markets for financials and politics.

In-play betting as well as the ability to place "lay" bets have revolutionized our ability to benefit from these markets (for all those not in the know a lay bet is betting that an event will not occur ie a horse will not win a race). Just watch any in-play tennis match and find out how the odds move. Making feeling of these patterns and developing successful strategies to make regular profit is the holy grail for many people.

The fundamental theory behind all this is that you need to back at a higher price than you lay. It's the exact same as business all around the world, you buy a product at one price and you sell it at another, the real difference between the 2 being your net profit.

An example is I back a horse at 2/1 for Ł100. That is 3.00 in decimal odds. If it wins I win Ł200 and obtain my stake back. Ahead of the start of the race the odds come down to 6/4 or 2.50. I then lay it for Ł100 and if the horse wins I have to pay out Ł150. The real difference between my back winnings and my lay liability is Ł50. That is what I would win if this horse wins and if it will not, I lose nothing! A free bet. The really neat trick is to "hedge" your winnings out so you win the exact same amount regardless of what horse wins. Within the above example I could lay the horse for Ł120 guaranteeing me a Ł20 profit.

The obvious problem is what happens should the odds rise? You're left with a bet you can not sell or get rid of without losing at least several of your stake. This is where the main difference between traders and gamblers comes in. A gambler takes risks to be able to possibly achieve a profit. A trader is happy to take a series of small losses safe within the knowledge that the wins will outweigh the losses.

There are many and varied approaches to trading though the most important thing is discipline. As soon while you fail to close a trade which has gone against you you are no longer trading but gambling. Sure, you could get away with it but when it goes wrong you shall certainly lose a great deal more than you bargained for. The very best way to focus your head and stop the gambling tendency arising is to work to strict strategies with defined entry and exit points.