You must have heard of Forex trading or Commodities trading. These are activities that involve buying and selling at the Foreign Currency and the Commodity Exchanges.
Sport trading is the buying and selling of Bets at the betting exchange in order to make a profit. Simply put this is the act of Backing and Laying the same event at different times during the event such that a profit or no lose situation can be created in that particular event.
Take for instance the match involving Juventus and AC Milan as our example. I could Back and Lay Juventus in this match and do it in such a way that I will win or break even whether Juventus wins or not.
See the picture below. See the right hand side of the picture. If I can Back Juventus at 1.68 for $20 and later Lay them for $26..50 at the odd of 1.25, I would have a situation where I will make a profit no matter the outcome of the match as you can see on the left hand side of the picture below.
In other words when trading we are trying to create a situation where we profit or break even before the end of the event. The final result does not actually affect us where correctly executed. That is what is called Sport trading. This is the ideal situation. Sometimes we could make a slight loss as is normal with trading which sometimes could result in a profit or Loss.
It could be done in most games or events. What it entails is that Betting must be available or allowed to take place during the entire course of the event. That is, if it is a football matches, we must be able to place a bet (Back or Lay) throughout the entire 90 minutes of the match. This has been made possible by the Betting exchanges.
I know you are wondering how the odds can come down. Well like in all speculative trades, there are occurrences or events that will make the price to go up or down. For example, if Juventus were to score 1 or 2 goals thereby leading. It is obvious that the price on Juventus will drastically fall.
Trading is a skill that you learn. It is not just using common sense or anything like that. You have to analyze certain info and trends. Keep reading and hopefully, you will acquire the required knowledge and later experience the joy of Sport Trading. This comes with time. But once mastered, you could kiss your Day JOB goodbye and work for yourself trading at the Exchanges.