What’s the Difference Between Betting and Trading?

Trading is growing as rapidly in India as is sports betting. However, most bettors in India don’t know the difference between sports betting and trading. That’s to be expected, anyway, since staking on games has been around for many years and trading only came about in recent times. Even people familiar with bookmakers exchanges and sportsbooks don’t know what trading is.

To succeed as a bettor or trader, you must know what makes a good bet and what quality trading is about. Yes, these two concepts share certain similarities, they are different in many ways. At one point or the other, your trading knowledge may come in handy when betting. When trading, certain strategies gleaned from placing bets can be helpful.

Below are some of the differences between trading and betting that every bettor in India should know.

Sports betting vs trading: definitions

Sports trading works just like stocks trading; you buy shares with sporting events as in stock markets. There are two ways this plays out: either you complete your trades before an event starts or you let it run in-play. If you let it run in-play, you’ll see prices fluctuate as the market responds to the events.

Then, you can pull out at any time you feel like you can’t take the losses. Sports trading is aimed at achieving an outcome at a certain price and laying it at a lower price for profit. In more certain terms, sports trading is the art of predicting an asset’s future direction, deciding a strategy to make it happen, and working towards it.

On the other hand, sports wagering is the art of placing bets and wagers on one or more sports. The betting industry today gives people the opportunity to bet on all types of sports, including cricket. For instance, you can place a bet on which team will win for a sports game or a particular player to score a goal and when.

The difference in ‘back’ and ‘lay’ in betting and trading

Backing a selection on a sportsbook or betting site means placing a bet on an outcome to happen. Bets placed on standard online betting sites are called ‘back’ bets. Bets placed on the outcome not to happen are called ‘lay’ bets. 

However, in sports trading, you can start with a lay bet and later place a back bet at a bigger price. On the other hand, you may place a back bet when the price is shorter before laying it off.

Betting which is riskier?

The risks are higher in online sports betting than in trading. The different trading strategies have their risks, with some being higher than others. However, the trading strategies are meant to eliminate risks as much as possible, especially compared to staking on games.

For example, if you place a straightforward bet on a sportsbook, you are risking your full stake because you’ll allow the bet to run its course. If you win the bet, your rewards are high; likewise there is a liability if you lose. Everytime you stake on a game, there is a possibility of it going either way; many times, your strategy is what determines where it goes.

Meanwhile, traders rarely let their back or lay bets run through the duration of an event without further action. They can remove every liability before an event gets underway, or gradually throughout the event. For example, if you bought shares at a particular amount, you can stop it at a lesser amount if you know you can’t bear the loss. In sports betting, however, you can’t pull back a bet you already placed.

Leveraging in trading and betting

Many brokers offer trading leverages which can help them maximize their profits. But, there is yet to be a betting company that offers bettors leverage for maximizing profit – nor is there likely to be. Leverage is important in sports trading to ensure you make more money if trading goes well.

Comparing availability

The financial market for trading is typically available 24/7, with stocks live from Monday to Friday for a specific duration. However, betting only happens when there are live matches and events going on. On some days, no betting is available, but such days are rare in India.


If you already know something about stock trading or sports betting, transitioning from one to the other will be easy. You only need to gather as much information as you can, then read and understand important trading terms and strategies. Also, study some betting exchanges and how markets move during and before events. Talking about a sports website you should study, Parimatch is the best in India. It is a platform that not only lets you access live games but several other virtual sports.

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