price confusion

[timtheauthor]

Hi, just getting to grips with this trading. I understand that the back bet has to be lower than the lay bet, but

1. by how much? - just one click? like 4.8 and 4.9

2. ituned into an American race just to watch the prices move to gain familiarity but saw that nearly all the back prices were way lower than the lay prices

Any input gratefully received
Tim

[doubleback]

Back high, Lay low. Have a look as this thread ...

[timtheauthor]

Thanks. I read the thread.
You say Back high and lay low. Thought l was going mad so here is the piece copied from another article about scalping:

"The concept is simple, if you back a price you must lay at a higher price, or, if you lay a price you must back a lower price to make a profit. Whatever happens your profit is guaranteed and is equal to the difference or spread between the back and lay price. The Betfair betting exchange is an ideal place to trade in this way."

Now l am really confused. Is scalping different to trading? Given the detail of your calculations on the thread you directed me to, l do not doubt your knowledgebut am confused why others say the opposite.
Tim

[doubleback]

I can categorically state, one hundred percent, if you Back low and Lay high you would lose money ...

Perhaps you could post the link to the article?

[WhyAlwaysMe]

I am confused too! That article seems to have it the wrong way round to me.

If you lay Southampton at 4 you want to be backing them at 6 etc etc.

Scalping is just a rapid form of trading where you are trying to take advantage of very small price movements eg lay at 2.0 back at 2.02.

[timtheauthor]

Thanks doubleback

l will proceed with some tests.

Tim

[mixed trader]

you really need to get your head round this before tradeing,as an example you want to back something at 4.0 then lay at 3.95 or something lower,you need to understand this before attempting tradeing.
cheers
terry.

[lcredd]

Back low, lay high is WRONG, it will guarantee a loss.

You MUST back HIGH, lay LOW.

EG:

Back Man U at 3.0 for £10 = You win £20.00
Lay Man U at 2.9 for £10 = You lose £19.00
_________________________Profit £1.00



If you lay at 3.0 and back at 2.9 you would lose £1 (lose 20 and win 19)

There is a lot of misleading information out there so it's always best to ask if you're unsure. Most of us on here can be trusted. Except you-know-who.

[joneyyy1981]

Back low, lay high is WRONG, it will guarantee a loss.

You MUST back HIGH, lay LOW.

EG:

Back Man U at 3.0 for £10 = You win £20.00
Lay Man U at 2.9 for £10 = You lose £19.00
_________________________Profit £1.00



If you lay at 3.0 and back at 2.9 you would lose £1 (lose 20 and win 19)

There is a lot of misleading information out there so it's always best to ask if you're unsure. Most of us on here can be trusted. Except you-know-who.

you wouldnt lose a £1 it would be a liability in the even it lost...

[bikeroptix]

I m newbie here

I am very interesting to bet. but the problem is that i have not of problems to understand the betting market.
I hope so you will post great updates. My good wishes are with you.