What Is BSP in Horse Racing? Betfair Starting Price Explained
If you’re new to exchange betting, you may have seen “BSP” beside a horse’s result and wondered what it means. BSP in horse racing is the starting price on the Betfair Exchange. It is worked out by matching money from backers and layers, not quoted by a bookmaker.
That matters if you’re comparing prices or following tips. At The Guvnor Files, selections are struck win or win-and-place at Betfair Exchange SP (BSP). They are not bookmaker each-way bets.
What does Betfair Starting Price mean?
A backer backs a horse to win. A layer offers odds against it, taking the other side of the bet. On the Betfair Exchange, these two sides are matched against each other.
BSP is the price set when the market is reconciled at the off. You don’t know the final price when you place a BSP bet. Betfair may show a projected price beforehand, but it can change as the market develops.
A bookmaker’s SP is different. It is the starting price returned by the bookmaker’s pricing system. BSP is an Exchange price formed from money on both sides of the market.
[Image: A jockey and horse waiting calmly before a race at a British course]
How is BSP calculated?
The simplest way to think about BSP is as a weighted clearing price. Near the start, the Exchange brings together the available SP back and lay money, along with eligible unmatched Exchange bets. It then works out a price that matches as much of that money as possible.
It is not simply the average of every price traded during the day. Nor is it a price fixed in advance. The final figure reflects the balance of money available when the market is reconciled as the race goes in-play.
For example, if there is plenty of money wanting to back a runner but less money available to lay it, the balance can affect the price. The final BSP depends on the orders in that market at that time. Betfair’s guide to Starting Price explains the process in more detail.
BSP versus bookmaker SP: which price is better?
There is no price that is best every time. But BSP can be useful because exchange prices typically have a lower overround than bookmaker prices.
An overround is the built-in margin in a bookmaker’s odds. Add up the implied chances represented by every runner’s price in a race and the total is usually more than 100%. That gap is part of how a bookmaker accounts for its margin. An Exchange works differently: backers and layers provide the opposing money, and the operator generally charges commission on net winnings instead of building a bookmaker margin into every price.
Research comparing exchange and fixed-odds markets has found that the favourite–longshot bias tends to be lower on betting exchanges. In plain English, outsiders can sometimes be priced more generously on an Exchange than with a bookmaker. That does not mean BSP will always beat bookmaker SP, or that a longshot is good value just because the price is big. Liquidity and the balance of money in a particular race still matter. See the study on market efficiency in person-to-person betting.
Win-and-place at BSP is not bookmaker each-way
These terms can sound similar, but don’t assume they mean the same bet.
A bookmaker each-way bet is usually made up of two bets: one on the horse to win and one on it to finish in a place. The bookmaker sets the each-way place terms, including how many places count and what fraction of the win odds is paid for a place.
A win-and-place instruction also involves a win part and a place part. But when a selection is struck at Exchange SP, those parts are placed in the relevant Exchange markets at BSP terms, as instructed. The place leg depends on the horse finishing in a qualifying position; the win leg pays only if it wins. Don’t assume that bookmaker each-way fractions or terms apply.
At The Guvnor Files, tips are struck win or win-and-place at Betfair Exchange SP. If a selection is marked win-and-place, follow the instructions for placing both parts. It is not a bookmaker each-way bet.
How to place a BSP bet
The exact screen can vary by device and account, but the general process is straightforward:
Open the relevant horse-racing market on Betfair Exchange.
Choose the runner and select the SP option for a back bet.
Enter your stake and check that the bet is accepted as BSP.
For a win-and-place selection, place each part in the relevant market as instructed. Don’t assume one bet automatically creates both parts.
A BSP bet is placed before the off, but the final price is settled at the start. If the final price matters to you, check whether your account offers a price limit and understand what happens if the BSP falls outside it. Betfair’s Exchange rules are worth checking for current terms.
The general minimum for a BSP back bet is £1. A BSP lay bet has a minimum liability, generally £10. Minimums can depend on currency, market and account terms, so check the current rules before placing a bet. A lay bet is different from backing: your liability is what you risk if the horse wins.
When might bookmaker Best Odds Guaranteed suit you?
BSP is not the only way to bet. A bookmaker’s Best Odds Guaranteed (BOG) offer may suit you if you prefer to take a price shown before the race, particularly on a shorter-priced horse.
With BOG, you usually take the bookmaker’s available odds when placing the bet. If the starting price is bigger, the bookmaker pays at the better price, subject to its terms. That gives you a known price when you place the bet, with the possibility of a better one later.
Compare the available price, the bookmaker’s terms and the Exchange option. There isn’t one answer for every runner. And remember that BOG is an offer on qualifying bookmaker bets; it does not turn an Exchange BSP bet into an each-way bet.
How our results are recorded at BSP
We publish our record so members and potential members can see the figures, including the losers. The current tracked record shows:
2,222 bets tracked
+442.18 points overall profit
9.73% ROI
4.03 average winner BSP
Those are historical results, not a promise of future performance. They are based on bets struck at BSP, so the figures reflect Exchange starting prices rather than bookmaker each-way returns. You can review the full results record and our performance stats.
Keep your staking sensible
BSP can move, and a losing run is part of betting. Use clear, point-based staking and a bankroll you can afford to lose. Don’t increase stakes to chase losses, and don’t treat a profitable past record as a guarantee.
BSP: practical takeaways
BSP means Betfair Starting Price: an Exchange price matched between backers and layers, not a bookmaker’s quote.
It is calculated at the off by balancing available market money; it is not simply an average of earlier prices.
Exchange SPs typically have lower overround than bookmaker SPs, but BSP will not always be the better price.
Win-and-place at BSP is not the same as bookmaker each-way. Follow the instructions for the win and place parts.
Check the SP selection, stake, market and current minimums before confirming a bet.
Use sensible point-based staking. Past results do not guarantee future returns.
For a closer look at how selections are shared and tracked, visit How The Guvnor Files works, browse the results, or see the membership options.
18+ only. Gamble responsibly.
Comments