Betfair Glossary: Essential Trading Terms Explained

Speaking the language is step one. This glossary covers every term you'll encounter on Betfair, from basic concepts to advanced trading terminology.

Trading Basics

Back: Betting FOR an outcome to happen. Traditional betting.

• Example: Back Liverpool to win

Lay: Betting AGAINST an outcome. You become the bookmaker.

• Example: Lay Liverpool to win = profit if they lose OR draw

Stake: Amount you're risking on a bet.

• Back stake = what you risk
• Lay stake = what you win if selection loses

Liability: Maximum loss when laying.

• Example: Lay £10 at 3.0 = £20 liability

Odds: Price at which you back or lay.

• Decimal format (2.00, 3.50, etc.)
• Lower odds = higher probability
• Higher odds = lower probability

Expected Value: Short for EV. If a bet has long-time value or not

Market Terms

Liquidity: Money available in the market to match your bets.

Matched: Your bet has been accepted by another user.

Unmatched: Your bet is waiting for someone to accept it.

Market Depth: Amount of money available at each price (odd).

Spread: Difference between back and lay prices.

Price Movement

Tick: Smallest price movement on Betfair.

Shorten: Odds decreasing (probability increasing).

Drift: Odds increasing (probability decreasing).

Steam: Rapid odds shortening from large bets.

Trading Strategies

Greening Up: Closing position with profit on ALL outcomes.

Hedging: Reducing exposure and secure profits by betting by covering all outcomes.

Scalping: Taking small, quick profits from minor price movements.

Swing Trading: Holding positions longer for larger price movements.

Commission & Fees

Commission: Betfair's fee on net winnings.

Premium Charge: Additional fee for very profitable accounts.

• Rare (affects <0.5% of users)

Risk Management

Bankroll: Total money available for trading.

Stop-Loss: Pre-set exit point to limit losses.

Exposure: Total amount at risk across all positions.

Advanced Terms

Dutching: Backing multiple selections to guarantee same profit.

Arbing: Exploiting price differences for guaranteed profit.

• Back on one exchange, lay on another

Weight of Money (WOM): Percentage of money on each side.

• Shows market sentiment

Last Traded Price (LTP): Most recent matched price.

Don't memorize everything at once. Learn terms as you encounter them in trading. This glossary is your reference guide.