Online Sports Trading - A Viable Investment?

by Rich Beatty

What if there was some way to tap into the ever-growing popularity of world-wide sport that could turn the gambling factor of sports betting into an investment vehicle producing sustainable results over the long-term such as equity trading?

Sports Trading was conceptualized and bridge between conventional sports betting and real-world stock trading was built.

Please note: generalizations are used in this article because sport trading exchanges can differ in nature and offerings.

What is Sports Trading?

You may immediately associate sports trading with that of card trading but until fairly recently, sports trading has taken on another exciting meaning.

Although the actual definition of sports trading may differ exactly depending on the type of exchange in question, it is essentially the act of investing in virtual sports issues or contracts (i.e. sports teams, players or markets).

Sports trading is not to be confused with sports betting (betting against a bookmaker) or some other form of fancy gambling, sports trading runs along the same investment lines as trading on a conventional stock market exchange (e.g. Wall Street).

Participants of:
Fantasy sports games
Stock trading simulation games
Sports betting exchanges
will identify a commonalty with a typical sports trading exchange.

Although sport trading is still somewhat dwarfed by the sports betting and real-world trading industries, there is no question of the future popularity for this concept as people from all backgrounds are coming together to trade be it virtual stocks or issues or real contracts for real money on any sports related market, offered by the online sport trading exchange.

Sports trading exchanges are developing sophisticated technology, commonly employing a proprietary trading platform and in most cases, with a Level II type trading interface.

It is typical of a global sports trading exchange to offer around-the-clock (i.e. 24/7) trading as exchange members are not inhibited with limited or set trading hours so are free trade anytime, from anyplace around the world.

Advantages over Sports Betting

Sports trading has the thrill of sports betting but without the inherit risk of gambling that sports betting produces.

Some notable advantages sport trading has over conventional sports betting are (trading exchange dependant):
Far less risk; eliminates the 'all or nothing' situation
Can still profit even from an event loss
Capital appreciation
Dividend income
Not solely competing against professionals
Greater chance of success (not limited to above reason)
Can be invested with minimal effort
Sport trading eliminates the gambling factor associated with sports betting; traders seldom lose their total investment in a stock holding (i.e. they have the ability to trade out to prevent further loss), the sports bettor loses their entire wager with an incorrect guess.

The sports trader is not competing solely against professional bookmakers whose job is to get the better of you - more often. Sport trading exchanges are about people-to-people interaction so you are pitting your skill, judgement and knowledge against fairer competition. Learn to be savvy and you end up with the edge.

Once invested, the sports trader can theoretically sit-back and monitor their investments passively; the sports bettor must normally wager every time to potentially make money and therefore, incur greater risk on each and every bet.

Advantages over conventional stock trading

Participants of stock trading already will find other useful benefits from a typical sport trading exchange such as:
Lower trading fees due to being solely online trading
Greater participation from a wider audience
Not being exclusive to professionals
Around the clock trading (no set trading sessions)
Wider-economy independence
Readily accessible sport information for all
Global trading stock exchanges
The global online sport trader is conveniently afforded time-zone irrelevant trading from an online trading environment that typically does not shut for trading.

With the world-wide following sport increasingly enjoys (activity is seldom subject to prevailing economic factors that affect conventional trading exchanges) and the substantial amount of publicly available information not subject to a privileged few, sport traders can finally compete on fairer terms with other traders.

Online sports trading on virtual trading exchanges provide a wonderfully unique cross over between conventional sports betting and real-world stock trading in essence; they combine many of the advantages of the two, in a single investment product.

The opportunities that exist on these virtual exchanges and the resulting advantages are too long to detail here but it is the hope of this article to spread further awareness and the investment advantages of sport trading because this is a viable form of investment worthy of promotion.


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About the author:
The Sports Trading Investor - games of strategy and skill, markets of excitement and opportunities. Providing informative resources to help make you become a winner!

Published at Apr, 26 '06 ; read 448 times;

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