In the wrong Kompany!
There are many cases for backing or laying at 1.02. But last Sunday we had a great example of why you just wouldn’t back at such short odds.
First off lets look at the odds: –
At 1.02 you would return £2 for every £100 staked. If you laid, then the opposing situation is true; you would earn £100 for every £2 lost. At odds of 1.02 the market is telling you there is a 98% of this situation occurring. To get value from this situation you have to know that the event you are betting on will occur over 98% of the time. If you lay then you could concur that the opposing situation should be true, you would only stand a 2% chance of possibly winning anything. But that’s not actually true, thanks to volatility.
Therefore the trick to doing a successful trade is to expose yourself to potential upside at the lowest risk, then wait.
At half time in this match Man Utd were 3-0 up, away from home, in the FA Cup, a player up, in a local Derby. If you were in the dressing room at half time what would you recommend to your players? With a three goal lead and more players you could push on to try and finish the match and risk conceding, but at 3-0 up the match is all but lost by your opponents. Probably best then to try and limit your opponents opportunities, i.e. defend.
If you were Man City would you would probably feel aggrieved with that red card and would be desperate to avoid the sort of humiliation they dished out to their opponents at their ground, but also you would want to get things sorted out pretty sharpish in the second half.
If you backed Man Utd, you would have exposed yourself to 45 minutes of angst. OK they were likely to win but with the normal distribution of a goal well below 45 minutes, especially for the home team, a goal from City was quite likely and the odds would respond. You can use Soccer Mystic to work out upside you have, or how much time you have before your downside completes. If you laid, then it would take some time for the price on Man Utd to sink to 1.01 to Lay, but in that time your would expose yourself to plenty of upside.
Last Sunday it made sense to lay.
Red card, for the ref?
Category: Football trading strategies
