Tag Archives: BetFair Starting Prices

While TradeSports-InTrades growth seems slow, BetFair-TradeFair is poised to experience a formidable expansion in the coming years.

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The Independent of Ireland:

Betting exchange Betfair is to steal a march on its rivals with the introduction of a new service which will boost liquidity and offer punters the chance to make bets at starting prices. Up to now, betting exchanges, such as Betfair, operated by matching bets on either side. But it will now offer a guarantee that punters can get on as much as they need, as long as they are willing to plump for starting price (SP) odds. However, the SPs offered will not be those quoted in betting shops, but prices fixed by the exchange.

A spokesman said the new service was expected to give the business a big boost. &#8220-Currently, 40% of all bets are settled at SPs and this type of business tended to pass us by up to now,&#8221- he said. Betfair is already the largest exchange operation, ahead of the Dermot Desmond-owned Betdaq business. Estimates put the market share of exchanges at around 5% and this development could significantly boost that figure, the spokesman said.

Well, best wishes to BetFair-TradeFair.

Previously: The BetFair Starting Prices… explained

Previous blog posts by Chris F. Masse:

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  • CLIMBING HIS WAY TO THE TOP: Erik Snowberg is now Assistant Professor of Economics and Political Science at California Institute of Technology.
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The BetFair Starting Prices… explained

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The Guardian (which has the best coverage on BetFair-TradeFair):

The Betfair betting exchange will launch its starting price betting service in the middle of next month, after it received the approval of a number of the exchange&#8217-s biggest-staking clients at a series of demonstrations over the last seven days.

Betfair has spent two years developing a robust system to allow bets to be placed at its own SP. As a result, three extra columns will soon be added to its display for every win market on its British and Irish racing service: one for bets on a horse at the Betfair SP, one for &#8220-lay&#8221- bets against it at SP, and a &#8220-guide&#8221- price in the middle showing what the SP is likely to be.

The SP market and the normal exchange market will be separate, in an attempt to ensure that it is extremely difficult to manipulate the SP. Betfair also hopes to offset any reduction in overall liquidity – which is vital to any exchange – by attracting new clients.

The great majority of off-course bets are still settled at the official SP, derived from on-course betting markets, while even on the internet, around 55% of racing bets are settled at SP. The Betfair SP, derived from a market with a negligible profit margin, will allow punters to make a direct comparison between the bookmakers&#8217- odds and those on offer on the exchange.

SP bets will have some differences from &#8220-normal&#8221- bets on Betfair. Whereas normal bets can be cancelled until the moment when a rival gambler accepts the other side of the bet, SP bets cannot be cancelled once placed. Punters can, however, specify a minimum price at which they are willing to back, and a maximum price for lay bets.

In time, SP betting is likely to extend to the exchange&#8217-s place-only markets, and to many other sports in which the SP concept has never been used before.

&#8220-This has the potential to be the most significant step forward for Betfair since the exchange was launched,&#8221- Stephen Burn, Betfair&#8217-s director of horse racing, said yesterday. &#8220-Racing is scratching the surface. In time, we hope that we will be able to add it across football, tennis and so on. We could even return an SP on the next general election.&#8221-

Niall O&#8217-Connor has more.

NEXT: More on BetFair&#8217-s Starting Prices.

BetFair will soon announce plans to publish their own starting prices.

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Probably, in response to this.

In horse racing, starting prices (SP) are the odds prevailing in the on-course fixed-odds betting market at the time a race begins. The method by which they are set for each runner varies in different countries but is generally by consensus of an appointed panel on the basis of their observations of the fluctuation in prices.

Signed: Deep Throat