In today’s topic, we will be looking at some of the common trading terms used in Sport trading.
1. Green up – to hedge for a profit over all selections (green book).
This is the traders dream position. The ideal situation or desire of any Sport Trader is to green up with every trade. But in reality, it is not always so as we do not live in an ideal world.
But the trader wins more than he losses and come out overall with a profit. That is how he moves on, making the whole thing worthwhile.
Greening up is a situation whereby having placed a Back and Lay bets at various times within the event, the Trader is now in a situation where he makes a profit whatever the result at the end of the event. See diagram below.
2. Hedging – This is to equalize profits or losses across all selections in the event regardless of the result. Many trading software have a “hedge” facility which will do this at the touch of a button.
Hedging may be confusing to a new Trader. Hedging means to have an equal profit or Loss on all the outcomes. It is not the same as greening up which is only a profitable situation. Hedging on the other hand can be for a loss or gain. This is something that can be used to reduce your liability or exposure in case the trade has gone against you. E.g. you are in a football game where no game has come. You can now equalize your loss across all the outcomes and then exit the trade for another one.
You can have a situation where you will loose example $5 no matter what the outcome is. This means you have hedged your trade for a $5 loss.
3. Red Up – to hedge for a loss on all selections (red book).
This is the opposite of Green Up. In Sports trading, the green color represents profit or gain while the red color represents a loss. So a situation where you have all red as in the diagram below is called a Red up.
This is not a good situation for the trader but this is unavoidable while trading. Sometimes it can happen, but not all the time. A trader always tries to make a profit or Zero all the time and not a loss. So long term, he makes a profit overall.
4. To Scratch a Game – This means to cancel out a trade by placing the opposite bet at the same odds, or to cancel the bet before it is matched. This is usually done in case you made a mistake and have placed a wrong Bet. You just place an opposite bet to cancel out the trade. You could take a very minimal loss in some cases.
5. A Stop loss – This is a bet placed (usually with the aid of trading software) to guarantee that you will not lose more than a specific amount on a given trade. Stop losses could be a useful especially in some trades. Let me give you an example. When you Lay the Draw in a match, you have said the match will not end n a draw. But 70 minutes into the game, you see that there have been no goal and therefore you are unable to trade out for a profit. Having waited so long into the game and no goal, you might concluded that there will not be any goal int the game. You might decide to trade out at say 2.00 to reduce your loss. The 2.00 is your stop loss. It is the odd at which you stop your Trade to avoid further loss.
The WOM (weight of money) – This is the amount of money queuing above or below the current odds. One good thing about the Betting exchange is that you can put in an odd of your own. Example, the current off is 2.50. I might want 2.70, so I will put this in my betting slip and submit. This will not be matched immediately. So it is kept in queue pending when the prices rising to that level or if someone decides to take that price. We would therefor be matched. So all the money waiting in queue at each particular time is what is refereed to as the WOM (Wight of Money). This has direct effect or influence on the price or off movement. The Bets on the queue represents demand and supply and the law of economics applies here. This can make the odds or prices to go up or down.
Hope I explained the terms that has been confusing you. In case there is any that I omitted which you want me to explain, just drop me an email and I will do that and add to this article. Hope you enjoyed this article. Thanks for reading.
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