Sports Trading VS Sports Betting

This article will look at a comparison of Sports Trading VS Sports Betting by comparing the Pros and Cons of both Sports Trading and Sports Betting to see which is more likely to be profitable over the long term.

Sports Trading VS Sports Betting
Sports Trading VS Sports Betting

What Is Sport’s Trading?

Sports Trading involves using a betting exchange such as Betfair, Smarkets, Betdaq, or Matchbook to place a back or lay bet on a sporting event in the hope that the odds will move in your favour so that you can lock in a profit regardless of the end result.

Pros and Cons of Sports Trading

Pros of Sports Trading

  • You don’t need a big bank to start sports trading as the minimum bet at Betfair is €1 and €0.10 at Smarkets so it is easy to dip your toes into sports trading
  • Unlike winning players at bookmakers, successful sports traders will not be restricted by the betting exchanges as they make their money from the commission they charge you
  • You can profit from your knowledge of a sport
  • There are plenty of free football and tennis trading strategies that you can try
  • There are plenty of free online resources that help you learn how to trade on Betfair and other betting exchanges.

Cons of Sports Trading

  • Can be high risk if you do not have proper bankroll management
  • Discipline is required to avoid chasing losses
  • Although you won’t be restricted by a betting exchange when you are a winner, you may have to pay additional commissions e.g. Betfair’s Premium Charge
  • Sports Trading is Gambling so if you have had problems with gambling in the past, then sports trading is best avoided.

What is Sports Betting?

Sports Betting is all about using your knowledge of a sport to predict the outcome.

Unlike Sports Trading, you bet on an outcome and only win if the bet you placed wins. Sports Bettors won’t get it right every time but their aim is to be profitable over the long term.

Pros and Cons of Sports Betting

Pros of Sports Betting

  • Similar to Sports Trading, you don’t need a big bank to start sports betting
  • Can make watching sporting events more fun
  • Easy to place bets as you have multiple bookmakers and exchanges to choose from

Cons of Sports Betting

  • If you use a bookmaker to place your bets then you are likely to be receiving poor odds so you will find it hard to be profitable over the long term
  • Sports Betting is Gambling so you can experience long losing runs which may tempt you to take greater risks to recoup your losses.
  • If you are a consistent winner at a bookmaker then you are likely to be gubbed by the bookmaker which means you will be excluded from any free bet promotions. You may also find that the amount you can stake at the bookmaker is restricted to pennies.

Which is Better – Sports Trading or Sports Betting?

Below are some of the main reasons why I think people should opt for Sports Trading over Sports Betting.

  • It is very hard to get good enough odds as a sports bettor to be profitable over the long term. This is especially true if you are following tipsters as the odds often drop after a tipster has made his prediction.
  • Sports Trading gives you more options. You can wait until the odds have moved in your favour before entering a trade.
  • You don’t have to be 100% right to profitable with sports trading. Sometimes you just need one goal to exit a trade for a profit.
  • You can create a better risk to reward ratios with Sports Trading but with Sports Betting you will always lose 100% of your back bet if it loses.
  • In my opinion, there is a greater risk of chasing losses with Sports Betting in comparison with sports trading.