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Greening Up

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This article is now published on www.betprofessional.co.uk

A popular technique used by many traders is to ‘Green-up’ after making successful trade. Most of the reputable software packages will do this for you and make all the necessary calculations required but I am often asked how do you do this?

Many novice traders think that greening up means spreading the profit across a number of selections. Recently I met such a novice who angrily exclaimed that his potential £500 risk free profit on a horse shrank to a lot less than £2 after he had greened. He expected £50, as there were ten runners! Unfortunately, it is not a case of dividing the profit by the number of runners.

How is it done?

Bet Angel Professional

Software such as Bet Angel make this process easy

Let's look at one selection in a Betfair market. I’m not concerned about how many possible winners there could be and this could be a horse race, a soccer match-odds market or a number of other win-only markets.

My selection is currently trading at 6.0 and I intend to back this for £100 as I expect the price to shorten. So my expected profit is £500.

A couple of minutes later the selection is now available to lay at 5.0. Laying at 5.0 for £100 gives me a liability of £400. Now I have the risk free bet we all like with a potential £100 profit on my selection if it wins and no liability at all if it loses.

But what if I want to make money whatever the outcome? I need to green up at this point.

I need to make a further greening bet. Calculating the greening stake required is easy. Simply divide the potential profit on the selection by the current lay price. So, in this case I would divide £100 by 5, which gives a figure of £20. I place a further lay bet of £20 at 5.0.

If the selection wins the following happens to the bets:

Greening up on Betfair
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Small wins to start with are great practice

Original Back bet : +£500
Lay Bet : - £400
Second lay bet : - £80
Locked in profit regardless of result : +£20

If the selection loses the following happens:

Original Back bet : - £100
Lay Bet : +£100
Second lay bet : +£20
Locked in profit regardless of result : +£20

I make a profit of £20 regardless of the result. This shows on Betfair as a green £20 (or €20 if this is your preferred currency) against each runner in the market – even though I haven’t made any bets on any other selection!

Another way of greening up is to calculate the greening stake required in one go.

Let’s use our original example:

Back £100 at a price of 6.0. This means our expected return should we win will be £600. £500 profit plus our stake.

When the price reaches 5.0 we simply divide £600 by the lay price of 5. 600/5=£120. So we lay our selection for £120 at a price of 5.0. This has the advantage of having the £20 profit-no-matter-what already built in and we only have to place two bets instead of three.

Hedging or greening options are available in most trader packages such as Bet Trader Pro and Bet IE. Bet Angel Professional has the ability to trade with greening built-in automatically. Manual greening is possible and one great advantage of Bet Angel is that you can use the auto greening feature even if your greening stake will be less than £2!

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