When is the Best Time to Trade?

As a Betfair trader, timing your entry and exit in the market is essential to success. Here’s a breakdown of when I believe is the best time to trade on horse racing and why it’s crucial to consider market liquidity.

Why Getting Out of the Market is More Important Than Getting In

When you’re actively trading on Betfair, I can’t emphasise enough how important it is not to get too fixated on your entry position. Sure, a sensible and valid entry is necessary, but what truly matters is your ability to exit the market at the right time. If you can’t get out of your position sensibly, you’re going to be in real trouble.

Timing Your Entry in Horse Racing Markets

For example, if you’re looking at a race an hour and a half before the start, you might see low volume in the market. Most of the money, in my experience, tends to come in during the final five minutes leading up to the race. So, while there’s an increasing amount of money over time, it’s critical to wait until the market is more liquid.

The Importance of Market Liquidity

Liquidity is key. If you’re trying to place a trade well ahead of the race, you’ll notice that there is little money in the market to support your position. Let’s say you want to back a horse for £100, but you can only get £30 or £40 at the price you want, forcing you to settle for a lower price. This means you’re less likely to profit, and you could even face a situation where a small shift in the market could result in a significant loss.

How Early Entry Increases Risk

If you enter the market too early, you’re exposing yourself to unnecessary risk. With only a small amount of money in the market, any movement in the price could drastically affect your position. In fact, it doesn’t take much money at all to move the market price by several ticks. This is a dangerous scenario where you might find yourself stuck in a losing position with little ability to get out.

The Best Time to Enter the Market

I’ve found that the best time to enter the market is when it’s most liquid. By “liquid,” I mean when both sides of the book are full of money, and you have plenty of options to get in and out of the market easily. This gives you more flexibility to make profitable trades and exit them without the price moving too much against you.

Don’t Trade Too Early – Wait for the Volume

When I’m trading on Betfair, I always avoid entering the market early, as the price movements are usually negligible at that time. Most of the price changes occur in the last five minutes before the race, where the liquidity really kicks in. At this point, the market becomes more dynamic, and you have better opportunities to make profitable trades and exit with minimal risk.

The Trend Is Your Friend, Till The End…

Of course, you need to get out safely as well, so doing that will improve your results. There are two key points to know about the market.

Liquidity dies as the race goes past post-time. Most people are out of their position or have placed their bets. There is a little bit of money around, but after ninety seconds, it completely dies.

If you are in a position, then it’s best to exit before two minutes. At this point, the market goes mad and you may lose a good trade. So it’s best to exit with that two-minute marker in mind. If you are not in a position, then this can also be a good entry point. It’s quite likely you will have a position. So, with the two-minute mark in mind, ensure you are out.

Conclusion – Timing Is Everything

The key takeaway from my experience is that trading on Betfair during horse racing requires patience. Enter the market too early, and you expose yourself to a great deal of risk. Wait for the market to reach its most liquid point, and then make your move. This way, you reduce the chance of a negative price movement wiping out your trade and maximise your chances of a profitable outcome.

Remember, timing your entry and exit carefully is crucial to success on Betfair. If you want to learn more about trading on Betfair, check out Bet Angel Academy’s structured courses or explore our website for a free trial of Bet Angel Professional.