Since I left my job earlier this month, I have been looking at ways at how I can make money in the short term. I am still looking for part time work, and income from my websites is going to be more of a long term thing.
When I was ‘studying’ at University, I managed to clear over £2K in a few months by a process known as matched betting. This is where you use bookmaker’s free bets to make risk free cash (anyone can do this, and you can learn more here). I have used up all the free bets for all UK bookmakers now, so I can’t really take advantage of this anymore. I therefore decided to have a go at trading odds on a betting exchange such as Betfair.
You can make (or lose) money on betting exchange when betting odds fluctuate. Essentially, this is like anything you can invest in, shares, currencies, oil prices etc can all fluctuate too. When there are fluctuations, there are also opportunities to make money too. The thing is, I know absolutely nothing about shares, oil prices or currencies, and this is why I decided to trade odds on reality TV shows. I could watch them (please don’t judge me for this), and get an understanding of what is going on, and you can do this too.
Now, this is very simple. At the early stages of the show (I chose to test this with Xfactor, and I’m A Celebrity) I simply bet on a few people that I think would make it to the final stages of the show.
During the course of the competition when people get booted out of the show, what tends to happen is that the odds for the contestants that are still in the competition start to drop, as they become more likely to win (a fluctuation). When this happens to one of the contestants I had earlier bet on, I then place a lay bet on that same contestant (a lay bet is a bet for something to not happen i.e. I then bet for that contestant to not win).When this happens you can lock in some profit. I have provided an example below on the U.S Xfactor. I have not watched the show, and the below is just a simulation for demonstration purposes only.
Say I place a bet of £10 at odds of 7.8 (back bet in blue) on Emblem3 because I think they will make it to the later stages of the competition. I am set to win £64.60 if they do win, but lose £10 if they don’t.
Let’s say in the later stages of the competition. Emblem3’s odds have now dropped to just 4. I can now place a lay bet, and lock in some profit. In the example below this now means we are set to make £9.03 no matter what the outcome of the competition is.
So I have been doing this with I’m A Celebrity, and below is my current outcome. I could make £35 no matter what the outcome of the competition is. However I have decided to skew mine, as I think David Haye will win, and I am set to net £110 if he does, and lose nothing if he doesn’t.
As I said, I have only been doing this as a test so far, and the most I had at risk at any one time was £43. The ship has already sailed to take advantage of odd fluctuations on I’m a Celebrity as it is in the later stages of the competition, but I fully intend to do the same thing (but with more money) come January with Celebrity Big Brother.
“He Who Dares, Wins”