Is it likely that a batting exchange would gubb me?
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Hi,
I have been absolutely slamming it this week and won over £200 a day (on average) in my exchange account. My worries are that I could be banned/restricted/gubbed by the exchange?
What are your thoughts please?
+0February 21, 2016 at 10:48 am
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No they won’t. The betting exchange makes money on commission. They make it if your bet wins or loses. When you win on the exchange you are winning some other mugs money – and the exchange takes a small cut.
Betting exchanges LOVE matched betters.
+0Oh dear.
+0That’s a relief, I must say. Thanks
+0Please do let me know what causes your concern, Nick?
+0Do you really believe exchanges make their money just from commission.?
There is always a spread between back/lay (aka spread betting) so there is a profit made on the difference between back and lay by the exchange.
I believe it’s a myth to say it is commission only where they make their money.
Views would be appreciated without abusive comments.+0
I’m not sure what you think Patrick. Do you think that betfair are laying and backing on their own exchange?
I lay win for 10 at evens. You back it at 10. It’s a win so you get 9.50 off me and betfair get 50p commission. It’s an exchange. It’s punters backing and laying – winning and paying out. Betfair only get commission.
The difference in the back and lay is kind of like a negotiation. I want to back it at 4.0, you want to lay it at 3.0 – I see ppl are laying at 3.0 so I might take a small hit and try to back for 3.5 and see if I get a match.
Betfair make nothing out of the spread between the back and lay odds. The term spread betting refers to something else as far as I know.
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Patrick, betting exchanges make their money by charging people commission on their net winnings. Whenever you place a matched lay bet, there is always someone on the other side who has backed that outcome. Therefore regardless of the outcome of the event, there will always be a winner and a loser. So the exchange makes a profit on every pair of bets placed.
+0I know how we have been conditioned to think exchanges work but do they really work like that.
For instance if there was no liquidity on a particular market,the exchange could put up back and lay odds of 5.0 and 5.3 with £100 avaliable on both.
Now punters take up the offer.
If the selection wins the exchange has to pay out £400 to those who backed it but recover £430 from those who laid it, making £30 profit plus £20 commission at 5% from those who backed it.
If the selection loses exchange gets £100 from the backer and pays out £100 less £5 to the layer.
This seems a far better business model than the traditional thinking that it is punter v punter.Also if it was really just commission based why do Betfair charge a super commission rate to punters whose net winnings are a certain % higher than their lifetime commission paid.
Surely Betfair would be encouraging the big winners = big commission but they do the exact oppsite.
+0Is your tin foil hat a bit of a tight fit patrick?
+0Are you a big X-Files fan Patrick? Lol
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Patrick. You can do the exact same thing if there is no liquidity in the market. But you (and they if they did but they dont) would be taking a risk that your back stake would not be matched and thus you would just end up paying out on your lay.
+0Actually I have read an article ages ago something along the lines of what Patrick is talking about, I have had a quick search around to see if I can find it but I have not been able to. I think there is a chance that some of what Patrick is suggesting does actually go on but I do not know for sure.
+0I am sure it does happen Dave.
Thanks for your support btw.
Makes perfect sense ,would be good if you could find the article.
Its a conclusion I came to myself not something I read.
Sometimes on here I feel like Christopher Columbus.+0
It’s no secret that all bookmakers make use of the exchanges to hedge their positions. I seriously doubt the exchanges themselves bother to take any action (unless you include the sportsbook for bf on their exchange).
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