Green Book Betting is the process of trading and successfully locking in a profit no matter the outcome of an event.
Green Book Betting
This Betfair concept relates to being able to create a position on a market where you limit your risk and put yourself in the green on every possible outcome. Green book betting which is also known as Trading has enabled Betfair to revolutionise the betting industry.
Green booking is only possible when the conditions are right, but here’s a little insight to help you understand how it works.
Green Book Betting Example
You back a horse in a ten runner field for $100 at $6.00. Your liability is currently $100 (if the horse doesn’t win) and possible profit is $500 (if the horse does win).
Your horse is well backed and the start of the race is approaching, its price has dropped to $3.00 to Lay. There is now an ideal opportunity to trade out of your current position and limit the risk of losing the $100. If you Lay $100 at $3.00, this is what happens:
|Bets||Selection Wins||Selection Loses|
|Back $100 @ 6.00||+ $500||– $100|
|Lay $100 @ 3.00||– $200||+ $100|
|Total Profit or Loss||+ $300||0|
Your worst case scenario now is that you get the $100 back and lose nothing. However, you still stand to win $300 if the horse wins.
On the Betfair website, if you have your P&L function ticked within Settings, it would show + $300 next to your selection and -$0 next to every other runner.
The P&L function shows your profit or loss on the market should that selection win.
Although the above example relates to horse racing, Green Book betting can be employed across multiple sports.
Basic Rules of Green Booking
- Back big & Lay low. If you are Green Booking, always back at a higher price than you Lay or else your Green Book will become a Red Book,.
- The bigger the difference in the two prices, the more you stand to win if the result goes your way. You could wait and see the gap increase but alternatively, you may miss the opportunity. Timing and judgement are everything when it comes to Green Booking.
- It’s vital that both bets are matched otherwise you could still end up just paying out a losing bet.
- Understand the factors that cause markets to move in order to predict fluctuation.
In the example, the same stake was used as the liability which limited the risk, but it is also possible to win a larger stake than what was backed at.
After placing a larger Lay bet at a smaller price, the exposure releases the previous liability but will not credit with the possible profit until the result is known.
After settlement, the account is credited with any outstanding winnings less the applicable commission charges.