What is a value bet and how does it happen?
February 21st, 2016. FA Cup Match between Chelsea and Manchester City.
3 hours before Kick-off, the best odds you could get on Chelsea to win the match was 1.75–1.80 (decimal odds). Exactly 1 hour before Kick-off, the line-ups were announced. The Manchester City line-up included 5 teenagers, some making their senior debut. This information trigger a huge change in the sports betting markets, all high liquidity betting markets odds tumbled to 1.35–1.40 for Chelsea to win the game, almost instantly. However, the bookmakers took almost 30 minutes to change their odds to reflect this new information. This presented what we call an “Edge”.
This means you could now place a bet on Chelsea to win at 1.70 with certain bookmakers, while the rest of the market agreed that the true odds should be 1.35–1.40. This presented an “Edge” of almost 15%.
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Written by: Marius Norheim, CEO of Trademate Sports