How To Trade Sports Like Stocks

Ron Bernstein was standing in the pit of the New York trading floor when it he and some his colleagues began contemplating the idea of trading sports the same way people trade stocks.

Bernstein had traded commodity options for 30 years before he founded, the first and only fantasy sports experience when users operate in real-time with actual money. He joined Benzinga’s #PreMarket Prep recently to talk about where the idea came from and how it works.

Related Link: How Traders Can Save $5,000 A Year

“I was trading cotton futures and cotton options at the time,” Bernstein said. “It was during the March Madness period when the tournament was going on.”

Bernstein explained that during downtimes of the trading day, people would come out of the pit and try to place wagers on different teams.

“Guys were looking for prices, and they were matching liquidity on sports bets when the markets were quiet,” he said.

Then Bernstein and some other traders starting thinking: Why can’t people trade sports just like we trade stocks and commodities?

“We were looking for a standardized contract, which a futures market is,” he said. “We were looking for liquidity where everybody can contribute their liquidity in one place, which an exchange does.”



They also wanted a place that guarantees that the winners would get paid, so that no one would have to chase down the money. The result was TradeSports, a first-come, first serve “proper” exchange for buying and selling props on sporting events, Bernstsein said.

Check out his full interview here:

Don’t forget to tune in to Benzinga’s #PreMarket Prep Monday-Friday 8-9:45 a.m. ET for your daily dose of market news and analysis.

Posted In: Benzinga's #PreMarket PrepRon BernsteinTradeSportsInterview

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.