Comments on: $18,441,883 of bets matched by BetFair for the winner of the 2007 World Cup of Rugby http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/ Prediction Markets, etc. Thu, 02 Feb 2012 23:13:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Niall O'Connor http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16361 Niall O'Connor Sun, 21 Oct 2007 21:24:32 +0000 http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16361 Nice of Betfair to clarify matters. But why have a running total of bets matched, if in fact it does not include all bets matched? I could not find the place on the site where this was explained. Nice of Betfair to clarify matters.

But why have a running total of bets matched, if in fact it does not include all bets matched?

I could not find the place on the site where this was explained.

]]> By: Chris. F. Masse http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16358 Chris. F. Masse Sat, 20 Oct 2007 18:08:41 +0000 http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16358 This is from Tony Clare of BetFair: <blockquote>Just FYI when a market is partially settled (for instance New Zealand being settled as losers after they got knocked out) the market volume data only includes bets still running. In other words the volume figure shown doesn’t include the bet [Niall O'Connor] mentions (or any other bets on New Zealand or any other team knocked out). Only bets still running on England and South Africa are included in the figures displayed on the site.</blockquote> This is from Tony Clare of BetFair:

Just FYI when a market is partially settled (for instance New Zealand being settled as losers after they got knocked out) the market volume data only includes bets still running. In other words the volume figure shown doesn’t include the bet [Niall O'Connor] mentions (or any other bets on New Zealand or any other team knocked out). Only bets still running on England and South Africa are included in the figures displayed on the site.

]]> By: Niall O'Connor http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16343 Niall O'Connor Thu, 18 Oct 2007 15:12:51 +0000 http://www.midasoracle.org/2007/10/18/18441883-of-bets-matched-by-betfair-for-the-winner-of-the-2007-world-cup-of-rugby/#comment-16343 I think it is important to put this figure into perspective. $18m is equivalent to 9m GBP. In order to work out the actual sum traded, we need to half this amount, which gives us 4.5m GBP. This includes one bet from a mystery gambler of $A5 million ($NZ5.8 million) on New Zealand to win the tournament. A proportion of this total will also be accounted for by players trading in and out of positions. Betfair takes a commission of between 2% and 5% from people who win on the market. So, as can be seen, the headline figure can be misleading as regards Betfair's actual profit margin on the match. I think it is important to put this figure into perspective.

$18m is equivalent to 9m GBP. In order to work out the actual sum traded, we need to half this amount, which gives us 4.5m GBP.

This includes one bet from a mystery gambler of $A5 million ($NZ5.8 million) on New Zealand to win the tournament.

A proportion of this total will also be accounted for by players trading in and out of positions. Betfair takes a commission of between 2% and 5% from people who win on the market.

So, as can be seen, the headline figure can be misleading as regards Betfair’s actual profit margin on the match.

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