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Tomas

13. Dictionary

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Following is a list of commonly used terms in the Betfair trading world with their respective explanations:

Account Statement

  • A section on exchange websites where you can see the history of your bets, their settlement, history of your deposits & withdrawals, etc.

All-out

  • A technique when you exit your position with one bet.

API

  • Application Programming Interface. Allows access to Betfair or Betdaq without using the website. It uses protocols and functions to access exchange data. Geeks Toy works using these APIs.

Arbitrage

  • Betting on something in a way that you can’t lose. Example: If we can match a bet on each player in a single tennis match at a price of 2.5, we have a guaranteed win.

Back

  • Betting on a selection to win. You get paid if the selection wins. The higher price you can get, the better for you.

Backer

  • Person who placed, or is trying to place, a Back bet.

Betdaq

  • Betdaq is the second largest betting exchange in the world and it’s good to have an account here.

Betfair

  • An account with Betfair - An absolute must have for every trader or bettor.

Betting Profit & Loss

  • Profits or losses on a timescale. Also a section in the "My Account" area of the Exchange websites.

Book

  • A set of prices on a number of runners in a market, priced so that the market overround is 100% or more.

Bookmaker

  • A person or company that’s creating market prices, and then accepting bets at these prices.

Bot

  • A program that automatically places bets on an exchange.

Cash Out

  • Specially calculated bets that equally split your profit or loss across all selections in the market, thus giving you the same win (or loss) no matter which selection wins.

Commission

  • A fee the exchange deducts from your winnings. Usually between 2 -7% on both exchanges, Betdaq & Betfair.

Downtrend

  • Price going down in the longer term.

Drift

  • Term for strong uptrend.

Event

  • For example, a single horse race or a football match. An event can contain more than 1 market, e.g. correct score, place betting, etc.

Favourite

  • A selection with the lowest price. If some selection has the lowest price, there is an assumption it has the biggest chance to win.

Filled

  • When two counterparties do a deal on the price and amount of a bet.

Furlong

  • Unit of distance used in horse racing. It’s an eighth of a mile, 220 yards, or 201 meters.

Gap

  • A price on a selection at which there is no money available to be matched.

Greenbook

  • Term describing a situation when you can’t lose in the event.

Grid

  • Standard display of a betting exchange’s market prices positioned horizontally next to each other. The Grid display is used to display markets on the Betfair and Betdaq websites, and is also supported in Geeks Toy.

Hedge

  • Specially calculated bets that equally split your profit or loss across all selections in the market, thus giving you the same win (or loss) no matter which selection wins.

In-Play

  • A market you can place bets on during the event, e.g. during a horse race or football match.

KYC

  • Know your customer. A process you may need to complete with Betfair to confirm your age and identity.

Ladder

  • A vertical interface of a selection in a market where you can see prices vertically next to each other. A much easier and versatile interface for trading than the grid.

Last Traded Amount

  • Amount of money made in the last trade.

Last Traded Price

  • The last price at which a Backer & Layer agreed on a bet.

Latency

  • The time it takes for communication between your PC and the exchange servers. Also known as ping.

Lay

  • Betting on a selection to lose. You win if the selection loses. The lower price you can get matched to your Lay bet, the better for you.

Layer

  • A person who has placed, or is trying to place, a Lay bet.

Liability

  • The maximum amount of money you’re currently risking / able to lose.

Liquidity

  • The amount of money in a market. High liquidity makes it easier to buy and sell with big stakes.

Matched

  • Matched bet. When two counterparties do a deal on the amount and price of a bet.

Momentum

  • How strongly the price is currently moving.

MTP (Minutes to Post)

  • Used in US horse racing videos. It displays the real time of the start of a horse race in the U.S. MTP is often different than the official Betfair scheduled time.

NET

  • Stake required to close your position. Example: You trade with a £10 stake and you have matched only £3.4 on a Back bet. The NET stake is £3.4, which you have to place on Lay side to close your position.

Payout

  • How much you’ll receive if your bet is successful.

Ping

  • The time it takes for communication between your PC and the exchange servers. Also known as latency.

Pre-race / Pre Match

  • A market that operates prior to the commencement of an event.

Profit Target

  • A price where your winning position will be closed.

Queue

  • All bets are placed on the exchange on a "first come, first served" basis. The queue is all money placed before you, at your price, that’s still waiting to be matched.

Resistance

  • A chart point, or range, that caps an increase (or decrease) in the level of a price over a period of time. An area of resistance, or resistance level, indicates that the price is finding it difficult to break through.

Return on Turnover

  • If you match a total of £100 bets in the market, and your profit is £5, then your return on turnover is 5%.

Scale-Out

  • Technique when you exit your position with more than a single bet.

Scalper

  • A person trying to profit from small price movements in the market without knowing the commodity.

Scalping

  • Type of trading using short-term moves in prices.

Scratch

  • Closing a trade at the same price as when you had opened it, or with a small loss.

Short-term trading

  • Type of trading where you aim to close your trades quickly.

Skrill

  • A payment method to deposit money into your Betfair or Betdaq account.

Spoof

  • Money that’s offered and not intended to be matched, in an attempt to influence the market direction.

Stake

  • The amount of money used for a bet.

Steam

  • Term for a strong downtrend.

Stop Loss

  • Automated bet placed by the software when a position moves against you.

Support

  • A chart point, or range, that caps a decrease in the level of a price over a period of time. An area of support, or support level, that indicates the price is finding it difficult to break through.

Sure Bet

  • Betting on something in a way that you can’t lose. Example: If we can match a bet on each player in a single tennis match at a price of 2.5, we have a guaranteed win.

Suspend / Suspended

  • A time, either temporary or permanent, where bets cannot be placed on the market.

Swing

  • A trading technique to describe the intention to profit from large / longer-term price movements.

Tick

  • A single price increment / decrement. From 3.35 to 3.40, for example.

Tick Offset

  • A tool that automatically places a counter bet, once your first bet is matched.

Traded

  • The amount of agreed trades (or matched bets) between a backer and layer, or all backers and layers.

Uptrend

  • Price going up in the long-term.

Volatility

  • The extent and degree of exchange price movements.

Volume

  • The amount of money traded.

Weight of Money

  • WOM. Describes how much money is available to Back vs. Lay, e.g. if there’s £5,000 on the Back side, and £1,000 on the Lay side, there is 5 times bigger weight of money on the Back side. And vice versa.

 

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