The second and most notable difference, especially for people who are new to the exchange is the ability to place back and lay bets. Aside from being able to place back bets, much like a sports book, we can also place lay bets match other peoples back bets.
For example if you lay a horse to win a race, your bet will win if the horse does not win the race. Betfair Exchange acts in a similar way to a stock exchange.
Betfair allow you to use their exchange in order to match bets with other users. They are responsible for ensuring those bets are fairly settled. This means that nobody needs to argue that a bet should have won when it lost or vice versa.
In a way Betfair act as a referee and a escrow service that will hold funds for as long as necessary. Without a regulated exchange, there are little options available if you are looking to place a bet within the open market. This forces people to use a bookmaker, who traditionally give terrible odds. Although commission may seem like an odd concept for anyone who is used to betting with a sports book, this is simply how Betfair Exchange manage to maintain their service.
Their business relies on this commission, without it there would be no exchange. On an exchange you nearly always get better odds…. Not got a Betfair Exchange account? Click here to get one with a free bet. Bookies on the other hand, offer terrible odds to ensure they profit no matter what. Once you meet certain requirements such as having a highly profitable account, you may be faced with the dreaded premium charge. This can be an extortionately high percentage.
Over the years it has sparked much controversy. You can read more about Betfair premium charge here. This is arguably the most common question newbies have when betting on an exchange. Most people that traditionally bet on a sports book, are used to bets being matched and confirmed almost instantly! That is of course, unless you are a profitable bettor…. Bets are confirmed quickly because the sports books will automatically accept bets. Their pricing has already considered the risk and factored in their margins for profit.
On an exchange however, your bet may take some time to be matched and confirmed. Typically bets are matched quicker in busier, more popular markets. If you are betting on a Premier League game on a Saturday and you place a bet at the current market rate or nearby , you will likely be matched instantaneously or within a few minutes.
At the opposite end of the scale, placing a bet on a third division team may prove a little more difficult. Naturally, there is less money in the market to match your bet known as liquidity. In more recent years, other sports exchanges have opened up and some have made good progress in relatively little time. Matchbook, Smarkets and Betdaq are likely the biggest competitors of Betfair Exchange at this moment in time and all have their advantages and disadvantages.
Arguably the main and obvious benefit of Betfair Exchange is the size of its user base and therefore the liquidity in the markets. This ultimately means that there is more money available to trade — and more to be made!
The biggest complaint that most traders have with Betfair is the threat of extra charges. This acts almost like a tax on high-earning sports traders, which can take a large chunk of profits on a monthly basis. The standard commission rate of five percent on winning bets is also much higher than their competitors. This lets me trade on the Exchange in a way that would simply be impossible on the standard website. In fact, there are all kinds of software around. The market place caters for all different trading styles, sports and operating systems.
Gruss and Bet Trader are a couple of the more well known options out there. All of these pieces of software are able to operate because they have access to the Betfair Exchange API.
What is the API? In summary, all you really need to know is that Betfair Exchange has more third party applications than any other sports betting exchange and more functionality available within them. Understandably, this caused a lot of confusion and some outrage in the trading community as it was yet another step that Betfair was taking to distance itself from sports trading. Net Profit and a company overall value indicator that also includes financial debt, cash position and minority interests which are key indicators when valuing a firm market value.
According to these financial ratios Betfair Group plc's valuation is way below the market valuation of its peer group. According to these financial ratios Betfair Group plc's valuation is way below the market valuation of its sector.
The current company valuation of Betfair Group plc is therefore way below its valuation average over the last five years. Infront Analytics provides full transparency on calculation formulae for most analytics. Just click the market multiple or financial ratio figure to open the formula viewer. It is possible to further drill down through the calculation chain clicking underlined figures. Financial ratios are generally ratios of selected values on an enterprise's financial statements.
There are many standard financial ratios used in order to evaluate a business or a company. Financial ratios can also be used by managers within a firm, by current and potential shareholders owners of a firm, and by a firm's creditors.