Traditional Trading is generally confined to Trading on a particular horse to achieve a win or place in a certain race. Before you can understand Lay Trading you must firstly understand Trading. In a bet, you place money on a particular horse in a race; if that horse wins you get paid a dividend Lay Trading, however, is the reverse side. Somebody places a bet with you on a particular horse in a race. If their horse wins you pay the dividend, if it does not win you collect the bet.
WHY LAY A BET OPPOSED TO PLACE A BET?
Quite simply instead of having one horse in a race trying to finish in front of twenty other horses, lay Trading allows to have the other twenty horses running for you to beat one horse. With the introduction of fixed price Trading lay Trading has come into its own as we are now able to secure a stable dividend, The beauty of Lay Trading is you determine the amount you want to risk, thus allowing you to know exactly your profit and risk margins, before you even place the bet.