Trading glossary
The language of exchange trading, each with a worked example and a link to the calculator that goes with it.
Back · Betting that a selection will win.Back-to-lay · A trade that backs first and aims to lay at a shorter price.BSP (Betfair Starting Price) · Betfair's exchange-calculated starting price, set at the off.Commission · The exchange's charge on your net winnings in each market.Drifter · A horse whose price lengthens as the market loses interest in it.Dutching · Backing several runners with stakes that return the same profit whichever wins.Green book · A hedged position that shows a profit whatever the result.Hedging · Placing an opposite bet to reduce or remove risk on an open position.In-play · Betting after the race has started.Lay · Betting that a selection will not win: acting as the bookmaker.Lay-to-back · A trade that lays first and aims to back at a longer price.Liability · The most a lay bet can lose: lay stake × (odds − 1).Liquidity · How much money is available and being matched in a market.Overround (book %) · How far the implied probabilities of every runner exceed 100%.Scalping · Trading for very small price moves, often one or two ticks, many times.Steamer · A horse whose price shortens sharply as money comes for it.Swing trading · Holding a position for a larger price move rather than a tick or two.Tick · The smallest step between two prices on the exchange ladder.Trading out · Closing a position before the event so the result no longer depends on who wins.Weight of money (WOM) · A comparison of the money waiting to back against the money waiting to lay.