What can Sports Betting Learn from Finance?

Matthew Wright runs CoreSpreads, a financial spread betting platform. In this article he discusses the similarities and differences between modelling and trading financial markets and sports markets.

Sports betting and finance share many common characteristics but for various reasons, such as regulation, the industries have developed different strengths. The area that sits closest to sports betting within finance is financial spread betting/CFD trading and in this article we look at what some of the main differences are and whether sports betting can learn anything from its long lost cousin, financial spread betting. For those not familiar with financial spread betting, providers such as IG, CMC, Core Spreads and City Index are the equivalent to the bookmakers. Lesson#1 – Hedging In general terms bookmakers don’t hedge whereas financial spread betting providers ...

An easy guide to closing out trades

Andrew Colin breaks down the mathematics of hedging your pre-game position, in-play.

Closing out a trade to lock in your profit is one of those basic techniques that everyone should understand, but is surprisingly hard to find explained. So here is a simple account. Closing out a back trade Suppose that you’ve backed a soccer team to win at odds of 10. They do well during the match and the odds drop to 5. The value of your bet has increased in value, but you’re worried that the match could go against you. How do you close, or hedge, the bet before the game ends to lock in your profit? You can do this by ...

Arbitrage of Synthetic Asian Handicap Bets

Andrew Colin discusses how Asian Handicap markets are open to arbitrage opportunities, resulting in guaranteed profits.

Summary This article shows how to implement synthetic Asian handicap bets, and how to construct a Dutch book so that any arbitrage opportunities arising between these synthetic bets and actual bets can be locked in to generate profits, irrespective of the outcome of the match. Expected return is of the order of 0.2% per match, so some degree of automation is vitally important to cover large numbers of matches, as is availability of sufficient liquidity to match bets. Asian handicap bets: the basics An Asian handicap bet is one in which a handicap is assigned to one of the competing teams. The handicap is ...

The Road to Rio

Brazil is the world’s fifth largest country by area. How will the distance factor affect team performance and how can this data be analysed for modelling purposes? Rob Esteva discusses.

Logistical factors are notoriously difficult to quantify when it comes to modelling in football. Distance alone is tough to find conclusions from as the various methods of transport alone can make away matches harder than others. The likelihood is that in most cases other than the extreme ones, a calculated home advantage takes most scenarios into consideration. That is not quite the case for final tournament however. There is one home team, a handful of neighbours, and then a posse of teams from further afield. I wrote a blog almost two years ago about the travel and distance factor in Euro ...

A Trading Evolution; From Football Into Horse Racing

The arms race between global football trading syndicates creates genius teams and technology which can be applied to many other sports, but horse racing can be one of the most lucrative, and most challenging.

I have worked as a recruiter, agent, broker and publisher within sports trading for approximately six years. During this time, I have worked with large and small syndicates across Europe, Asia and North America and met a diverse variety of individuals and groups. Approximately 70% of my work has been within football trading, 10% a mix of other sports such as golf and tennis, but the most interesting part, around 20% of my work, is within global horse racing. In football, the trading volumes in Europe and Asia are now so enormous and so established; it is difficult for any market ...

Erlang and Exchange Betting; Can The Market Learn From Whatsapp?

How can the disruptive entrance of Whatsapp and their $19bn sale to Facebook, be used as a lesson for the exchange wagering industry and does Erlang hold the key? Justin Worrall explains.

One of the biggest tech stories so far this year was definitely Facebook paying $19bn for the messaging app Whatsapp. Quite why Facebook would pay such an eye- watering sum for a chat app is an interesting question of itself - a bit outside the scope of this article and network - but well worth your reading Benedict Evans. The most interesting point from my perspective is that Whatsapp now send more messages than the entire global SMS system combined - and all with just 32 engineers. WhatsApp message volume growth is still accelerating. May have overtaken global SMS. pic.twitter.com/KsR85Mplrt — Benedict Evans (@BenedictEvans) February 19, 2014 Chat is hard, let's go shopping Now ...