Volume is not liquidity

12/06/2016 | By | Reply More

I was at a meeting last week and was at pains to point out the difference between volume and liquidity. I’ll save the detail for another post at some point in the future, but here is a simple view and some examples, using just £100 stakes.

If you come on any of the courses we run, I’m happy to talk you through the strategy. It’s simple easy and really effective at tournaments like Euro 2016.

Stuffed full of cash

When you look at a lot of the ‘big’ footy markets they can be stuffed full of cash. 50, 60, £70k or more can stuff up the whole book. It’s still possible to trade in these markets but you need to work in and around the money. If the market moves it can be tricky. Your position will be behind a ton of money.

The only way this market works really well is if that money gets taken really quickly. If the money doesn’t get matched quickly you end up with lots of volume, but no liquidity. A duff market.

A good market

Where you get a combination of high volume and a high match rate, you end up with the perfect market. You shove loads of money in and it’s matched quickly and if you mess up you simply get out. That’s your perfect market.

I’ve seen all the markets you can possibly imagine, from the very first markets right up to the ones stuffed full of so much money you can’t imagine.

Lack of liquidity or volume?

While some people scoff at the perceived lack of liquidity on Betdaq, I see nothing but opportunity. As long as markets are balanced between volume and liquidity you can trade them. You just change your style slightly.

So that’s why I’m pointing out Betdaq screenshots here. On big races, big footy matches and so on, the balance of volume and liquidity is just right. As you can see from these images it works and on quite low stakes as well. You have little at risk and can turn it into something useful. I’ll do this on EVERY match in Euro 2016. BetdaqAngel software is completely free as well, so I make that an infinite return on investment. Not exactly a disaster!

I did a video on the same subject not so long ago, see below if you want to watch it. Good luck over the next few weeks, it’s going to be busy.

11-06-2016 - ENG vs RUS - Betdaq - Copy

12-06-2016 20-01-19 - Copy 12-06-2016 16-58-55 - Copy

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Category: Trading strategies

About the Author ()

I left a good job in the consumer technology industry to go a trade on Betfair for a living way back in June 2000. I've been here ever since pushing very boundaries of what's possible on betting exchanges and loved every minute of it.

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