The BSP, or Betfair Starting Price, is a key term in betting that represents the starting price on Betfair Exchange.
Unlike traditional bookmaker starting prices (SPs), the BSP is driven entirely by market supply and demand, making it a more accurate and often more favourable option for bettors.
But what makes BSP so important? how does it differ from SP?
In the remainder of this article, we’ll explain why and how the BSP is so important…
What Does BSP Mean in Sports Betting?
BSP stands for Betfair Starting Price, a unique pricing mechanism introduced by Betfair Exchange in the early 2000s.
Until this time, punters were only able to place bets with a bookmaker. They had two options; fixed prices (at the time of their bet) or starting prices (SP). As the name suggests, the SP is the price the bookmaker offers when the event starts. For the bookmaker, this was great as they had full control over price!
However, on exchanges, market supply and demand would set the price and users would pay a commission on winnings.
For the bookmaker, control was gone.
This is why the BSP is almost always better than a bookmaker’s starting price.
These are the top three elements that make it different (and better) than a traditional SP:
- Market-Driven: BSP is determined by market supply and demand, not by a bookmaker’s margin or control.
- Efficient Pricing: Typically, BSP reflects close to 100% over-round, meaning it provides true market value.
- Transparent: With no extravagant bookmaker margins, BSP is often better for bettors than traditional SPs.
In Short: BSP is the price at which a betting market closes on the Betfair Exchange, offering bettors a fair and efficient starting point in conjunction with the betting markets overround.
Don’t know what over-around means? This article explains it perfectly.
How BSP Differs from SP:
Both BSP and SP are starting prices in betting, but they differ in significant ways…
| Feature | BSP (Betfair Starting Price) | SP (Starting Price) |
|---|---|---|
| Determined By | Market supply and demand | Bookmakers |
| Pricing Efficiency | True market value, close to 100% over-round | Includes bookmaker margins, less efficient |
| Transparency | Openly influenced by exchange users | Controlled by bookmakers |
For bettors seeking accurate odds without inflated margins, BSP is the clear winner every time.
Why is BSP Important in Betting?
With BSP being dictated by market forces, this makes it a great tool for measurement. The reason is simple; it’s extremely hard to manipulate the BSP.
Furthermore, it offers a factual point of reference that all betting mediums can be measured against – the point at which the event started. It’s a solid benchmark for analysis.
In the wonky world of betting (it’s a devious industry) many tipsters, bookmakers and pundits will quote and manipulate results to suit their agenda. You may find them advising morning prices you’d never get and including various terms such as ‘best odds’ after the matter.
It’s just how things are, and probably always will be. However, back-testing results to BSP is one way of seeing a factual, unbiased starting price for betting markets amongst the noise.
This is why BSP is so important.
BSP in Horse Racing & Greyhound Betting:
You’ll find both horse racing and greyhound markets
In horse racing and greyhound betting, you’ll find the BSP functions in exactly the same way – with one noteworthy exception…
Liquidity.
Greyhound betting markets are notorious for limited liquidity. And while there is usually adequate liquidity by the start of a greyhound race, you may find the BSP is open to more variation. Just one or two large exchange bets can skew the Betfair Starting Price on greyhounds, particularly when the market isn’t very popular.
On the other hand, this is extremely rare in horse racing as there is a significant volume of bets in the lead-up to post.
In most cases, horse racing BSPs are extremely efficient. The more ‘informed’ an exchange market is, the more efficient the BSP is likely to be. Thus, the most popular races are unlikely to leave the value in a price at the start, especially when you consider commission on winnings. That said, it’s still better than a bookmaker.
BSP Facts To Conclude:
- BSP stands for Betfair Starting Price, a price determined by market supply and demand on the Betfair Exchange.
- The BSP is calculated by balancing unmatched back and lay bets on the exchange at the start of an event.
- BSP pricing typically offers better value than a bookmaker’s SP because it excludes bookmaker margins and reflects true market conditions.
Related: Rule 4 Deductions Help for Traders
2 thoughts on “What Does BSP Mean in Betting? Betfair Starting Price Explained”
Hi caan,
I used to have a process which allowed me to get a tipsters suggested odds (HT) with the bookmakers before the prices collapsed. This worked a dream for a while until the inevitable happened. Think I’ve only got One bookmaker now who allow me to bet anything more than 22p now .
Anyway, you mentioned back testing data which caught my eye and wondered how I could obtain such data? Price movements of previous tipped horses would be extremely insightful to a assist with lay to back strategy on such reversals where the ‘informed’ market corrects the noise by the point of BSP?
What percentage of bets are placed at BSP?