Peter Webb – Bet Angel – Understanding the order queue on a betting exchange

So if we look at what’s going on within this market, you can see I’ve done a trade already, but you can see. We’Ve got some money, sat at five point, one where we’ve got 256 pounds sat there and there’s 900 pounds or nearly a thousand on order. You can just see how just moves that position there now what those numbers on the back and the lay side are representing is all of the money that’s waiting to get matched. That is the order queued when we put our order in there we go to the back of the queue and our order begins to work our way to the front, but rather than explain it on a screen, as you see here, I think it’s better if we Actually do it in a different manner, so let’s have a look at how the order key works. Please like and comment on the video below that will allow me to produce better quality videos and more of them in the future. So the trading process is pretty simple to understand.

You open a position, you close a position now you may need to do that once and then hedge, but you may actually open a position, close a position, open a position close and do it many times and then hedge, but basically the core fundamentals of a trade Is to open and then close a position and that’s one of the things that makes it different and gambling because gambling you open a position, you take an open-ended risk, but on trading you’re, always open and close a position. That’S how you can draw a line between those two things, so you know you have to place two positions into the markets. Now you could actually open a position.

Wait for the trade to mature, put the closing position in or you may actually put both positions in the market at the same time. Why would you do that? Well, when you look at the market, what you actually, what I’ve done on this spreadsheet here is I’ve simulated, a particular market. Although when you first look at this, you may not completely understand what you’re looking at, but if we go to the bottom of the spreadsheet here, you can see a certain amount of money here on one side and a certain amount on the other.

What we’re talking about here is money, that’s on the lay side of money on the back side. So if we did a scout trade or a mate market or something on betangel, what you would actually do is put those two orders in the market sort of fairly close to each other. So on this occasion, what we’re is that we’re putting one 300-pound order in one side and a 300-pound order in the other you can see here. It says your order is here, and you can see 300-pound on one side 300 on the other, and then this is all of the money. That’S waiting to get matched so you’re joining the back of the queue you’re, basically putting your positions into the market when there’s loads of money there already now, what you see on betangel and on Betfair or whatever exchange you use. Is you see a summary of all of the money?

That’S sat there waiting to get matched so in this particular example. All of these individual amounts waiting to be matched they’re. All different people add up to two thousand four hundred and sixty-five pound all the people on the other side of the book.

All of that adds up to one thousand four hundred and seventy seven. So what happens from here on in is determined by whether people want to back or whether people want to lay so let’s say that people decide that they’re going to take some money on this side. Then what actually happens is you can actually see that your money begins to head down towards the front of the queue. So we’re saying this is the front of the queue that’s the back of the queue and your order is somewhere within that queue.

So somebody take some money on this side. Somebody take some money on that side. Somebody takes a bit more money on this side. Somebody take some money on that side. Somebody takes a big chunk on this side.

Somebody takes a little bit on that side, but can you see all the time that this process is continuing the amount of money that’s displayed at the current back and lay price is fluctuating up and down, but all of the time that you sit within that queue, You’Re, basically getting nearer and nearer to the front of the queue. So ideally at your mission, should you choose to accept is to get both those orders matched at roughly the same amount of time. Because can you imagine you’re in the position where you’ve got one side of the order over there and the other side of the order over there? Can you see there’s a big gap between what’s happening on one side of the book and what’s happening on the other and that gap that you’ve got there represents risk because, of course, your order eventually gets matched and as soon as you already gets matched the money? May begin to thin out over here, and then the price could starts to move.

So, ideally, you know the perfect trade would be. If I wound this for a little bit we’re both the orders are going to get matched almost simultaneously, because that means basically, that you put both trades into the market and move them. Both those traits get matched and the worst possible scenario is where they’re very far apart. So when you put two orders in to the market, what you’re effectively trying to do is you’re keeping an eye on when you think they’re going to get matched, because if that begins to get out of kilter, then you probably want to change your trade. But if you can actually get both of them, matched at roughly the same amount of time or very quickly, one after the other, then that’s the perfect scenario for you.

You will take less risk so yeah, that’s the order, q. Basically, the betting exchange works in this way. When you look at the amount of money, that’s on the back side and the amount of money, that’s on the lay side, you’re, not looking at a specific amount of money.

It’S the combination, it’s the cumulative value of all of the individual positions that are in the market, I’ll be in there bill from Peterborough, we’ll be in there. Jenny from Norwich will have placed a bet and we’ll be sat in that order. Q and when you look at bet angel, what you will see is the sum of that order. Q, but you don’t necessarily know particularly where you are within that or Q, so having an idea or having a strategy that allows you to understand or manage. That is obviously the key to doing a successful trade if you’re trying to trade, two positions in and out of the market at the lowest level of risk, so yeah in bet angel, and we actually have a feature that will help you do this.