Betfair is the world's biggest betting exchange - and some would say it has single-handedly revamped the entire horse racing industry.

In the World Cup, tens of millions of pounds traded hands on the site's markets, and there has never been a better time to join the fray and attempt to "skim" some money from the other punters.

Betfair systems can come in many different types, but I will start from the top. So, how do we go about it? Well, we have three options, or three "Betfair systems" we can attempt to apply. Each has its own set of benefits, and I do have a personal preference, which I will come onto in a moment. Just remember that yours may be different, but if you are a complete beginner, you should approach the matter with an extremely open mind.

The first option is traditional backing - in other words, betting that a particular horse will win a race at the odds that are available at any given time. I personally avoid this method, as it does not allow me to leverage Betfair's model fully. The problem with backing horses is that you are only going to be getting slightly better odds than you would at a traditional bookmakers. In other words, there is no discernible advantage to backing selections on the site as opposed to elsewhere.

The second system available is "laying" - in other words, betting that a particular horse (or any selection) will lose, and if it does you win your stake. Once more, I do not indulge in laying horses on the betting exchanges, but at least you are taking full advantage of the betting exchange model. With laying horses, you are also able to trade off if the price moves in your favour, which brings me onto my personal choice.

The third method, and my personal favourite, is trading on the betting exchanges. As a trader, you can take full use of Betfair (and indeed any betting exchange like Betdaq), and make a good living from the site.

Trading has several different ways to approach it, and there are so many angles that it is hard to pick a fundamental rule, but it really comes down to this: to trade properly, you need to have an idea of which way the odds are moving and for that there are multiple indicators, but since this is a beginners guide, lets start from the top.

The most basic indicator to look for when you want to trade is the "weight of the money" - whereby we look at imbalances in the market, and try and predict and take advantage of odds movements on this basis. In practical terms, you back when there is more money on the lay side - and lay when there is more money on the back side. This is a rough gauge of price direction, but it is accurate enough in the majority of cases, and it suffices for this tutorial.

This allows you to predict price movements, and develop a genuine system that guarantees returns from the get go. Betting exchange trading also allows you to "hedge your bets" and guarantee a profit no matter what the outcome.