The concept of trading is closely associated with "bartering" a form of commercial transaction associated with ancient times. Bartering was a means of an economic transaction or exchange without physical money being used. For instant peasants with a surplus of food could barter the extra food for vital equipment.

There is an argument that trading is a form of bartering because there is no exchange of physical cash when a buyer and a seller complete a transaction. Instead the transfer of money is in electronic currency which is why the digital age is rewriting the way we interpret traditional concepts.

In its basic form the concept of trading is one in which there is an exchange platform that allows buyers and sellers to come together and bid on prices for specific instruments. The core function of an exchange is to ensure fair and orderly trading, as well as efficient dissemination of price information.

Traditionally exchanges are associated with financial instruments such as equities (stocks), commodities, futures, options, gold, derivatives, bonds, OTC and forex. In these environments there are buyers and sellers who contribute to the overall direction on price action. The concept of profiting by trading on an exchange is based on the principle of buying low and selling high, and selling high and buying low.

Everyone is aware of the huge amount of gambling associated with sport. Whether its football, tennis, horse racing, basketball, boxing or golf, every sporting event will have a number of betting options marketed by licensed bookmakers. Gamblers and punters go in and take the prices offered by the bookmakers and complete their bets hoping to win the bet.

However a sports exchange is an electronic platform that allows sports traders to buy or sell market prices on what they believe will happen in sporting events. Just like a financial exchange buyers and sellers drive the market price up or down in response to what transpires both before and then during the sports event.

See the video below for a great insight into how a sports exchange is developed to mirror financial trading.


Many people ask why did I choose sports trading over forex or equity trading?

There are some significant advantages with sports trading which are outlined below.

1. Firstly, sports trading transactions are classified as gambling by the UK department of trade and industry since they do not make a distinction between traditional gambling/betting and trading a non physical product on an electronic sports exchange. This is a huge advantage in terms of income. The winnings are NON TAXABLE unlike trading equities, commodities, bonds and FOREX which when traded in the traditional means (Note that spreadbetting although under supervision of the Financial Conduct Authority like traditional financial trading is also non taxable) are liable for income or capital gains tax.

2. The second reason is that there are over 100 professional football leagues across the world meaning ample trading opportunities across the full 12 month calendar and 7 days a week. This creates a significant amount of trading opportunity meaning that football trading is not affected in the same way that financial trading is. For instance some financial instruments (forex/futures) tend to be quite patchy around December/January and also during the summer months. With football nearly every single day of the year yields potential trades. When equity financial markets are closed between end of Friday and Monday morning, sports trading is still presenting significant trading opportunities over the weekend. When the major European football leagues comes to an end in May for the summer break then you have access to the south American leagues, Asian leagues and Scandinavian leagues which are in full flow.

3. The third reason is there is more complexity to financial markets because of the fact that there are bear markets, bull markets and sideways markets. This means one essentially has to have a strategy which is completely impervious to market conditions (virtually impossible) or 2-3 strategies to account for different market conditions. With sports trading because the laws of the game are pretty much fixed it means that market behaviour and reactions are more constant meaning that identified trends and patterns are much more consistent in the long term meaning that a true edge can last into perpetuity.


The key to success in trading is the ability to accept losing a battle whilst knowing you are winning the war

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