In simple terms, Market Liquidity is the money that is available for you to back or lay on the Exchange markets. On the Betfair Exchange you will only need to use the lay function. It is really important to understand Market Liquidity so that we can avoid having either partially matched of completely unmatched bets. Partially and completely unmatched bets occur when there isn’t enough liquidity in the market.
What events have the best Liquidity?
The reason we strongly advise in all our beginner offers that you stick to high profile football matches, is to avoid the partially and unmatched bets. High profile football matches will always have excellent liquidity in the market. For example a game between ‘Chelsea vs Arsenal’ will have thousands and thousands of pounds ready to be matched, whereas a game in ‘League Two’ between ‘Leyton Orient vs Luton’ will have a relatively poor liquidity.
The images below demonstrate what we mean. You can see the volume of money in the high profile football match between ‘Chelsea vs Arsenal’ in significantly higher than the game between ‘Leyton Orient vs Luton’. This is because people are more like to bet on high profile football matches, therefore there will always be more liquidity in the market for those types of games.
How do I know if there is enough money in the market to match my bet?
The simplest way to know if you can match your bet fully is by examining the market closely before trying to match any bets. For example if I am trying to match ‘Arsenal’ @ 2.6 with a lay stake of £50 and in the pink lay box next to Arsenal underneath the price 2.6 there is less than £50 then my bet will not fully match. I know for a fact in a game between ‘Chelsea vs Arsenal’ that 100% I would be able to match £50 in the market as the liquidity would be very strong and have thousands of pounds underneath the odds of 2.4. If there was less than £50 this would mean I was entering a market with poor liquidity and would instantly not go ahead with this match. If you are ever not sure about the liquidity in the market then we strongly advise finding a different match with a strong liquidity in the market. Below are some examples of good and poor liquidity in different markets.
If you are at all unsure about anything to do with liquidity in Exchange markets then please do not hesitate to contact us, we will be on hand to help guide you through it.