How would you like to trade a market where you get large regular price swings every 10 minutes in the afternoon, seven days a week. A
market where all prices are set purely by supply and demand, few transaction costs, no middle men and you only pay commission if you win? Where you can freely act as a market maker and where you have direct market access and where you can create a spread for others to take?

Betfair has revolutionised the betting market and created an open platform for exchanging risk on sports events. This market is now viewed much more like a traditional financial risk market than an old fashioned betting market. Smart users have realised that there are huge opportunities on Betfair because they can buy and sell risk in much the same way they would in a normal financial market but without the burden of cost or the restricted access that is usually associated with traditional financial markets.

Click here to learn more

scrip ive a betf account use for the odd footy bet got a few mates who actually work 4 bfair,but must admit iam a bit of a novice read all previous posts and ur own prob page intresting stuff.
will you be doing a precise of the manchester event ..availbe online ?

Dil, yes I'm about mate. I will dig out all the SSheets this week.

The problem, like any financial speculation, is that it's just that. You can't profit unless it moves in your direction! What exchanges do is offer you the possibility to close out your position early (at a cost!) rather than having to wait to the end of the event.

mos, not planning any thing at the moment.

Hi Scrip, real sorry but looks like I won't be able to attend after all, maybe the next one. Thanks anyway.

Scrip,

Received your cd today.

Many thanks and looking forward to your presentation in 2 weeks

Steph, Sorry to see you can't come.

Bakko, Thanks for the confirmation. Look forward to seeing you there.

I am busy tonight preparing material and look forward to sharing my experiances. It's gonna be a late night!

Do you do spelling courses ?

Cheers :-)

Is that the course Scrip? So 5pm finish is only a rough guide?

Harlosh, I trust you will have grasped the concept by 5pm! I plan to use the morning to do the theory and then afternoon to put it in practice. I expect everybody to have done a profitable trade by close of the afternoon session. At the close of the main markets I'll have an hour or more of general questions. I will be there the night before so if anybody is also there or nearby they are welcome to pop in.

BIG NEWS - One of the big competitors to Betfair has gone bust!! Looks like it has taken a large chunk of client money with it but whether this is ringfenced or not is another question. Rumours have it that Sporting Options were trading on their own book as well, Bound to cause trouble.

Betfair of course is completely safe as it is hugely profitable and very well funded. The result of this will be to probably provide more liquidity to Betfair which is great.

One of the smaller exchanges, Sporting Options, went into administration today. There is doubt as to whether client funds were actually segregated and so a lot of people could lose a lot of money.

While there is no comparison between SO and Betfair, it does bring home the fact that betting exchanges are not regulated by the FSA and that there is no compensation scheme. Most operators (including Betfair) state that client funds are separate from operating funds, but you only have their word on that. Even if they are separate, that does not mean that it is impossible for them to be used to prop up the company if the directors decide to break their promise.

It is a good idea to keep the size of funds held with a betting exchange as low as possible for this reason, and another one too. The other reason is that it is easy to make mistakes in trying to bet quickly in a fast market. In the majority of cases mistakes will be either recoverable or have small impact, but in the worst case they could clean out your account. For instance, imagine wanting to lay a 200 bet at 5.0 (maximum liability 800) but accidentally adding an extra zero and making it 200 at 50. In a sparse market the bet could actually be filled at odds all the way up to 50 leaving you with a maximum liability of anything up to 9,800. It would be difficult to trade out of the mistake and impossible to do so if it happened close to suspension of the market. Couple that with an unexpected ending to the race or game and you will be sorry.

When starting out on exchanges, 100-200 is plenty. If you are successful the funds will mushroom and if you make a mistake it won't be a huge one.

LOL Kayak, Great minds and all that!!

snap :-)

Incredible we should post at the same time.

Wonder what the odds on that were?

BTW I had 24.61 in my Sporting Options account. Shall I sue?

Well the news broke at 16.00 so I guess about 1 in 480 assuming we both were going to post today :-)

Just noticed this thread and had a read through!
Fascinating stuff but far too complicated for me...or is it?
If you have any info Scrip, please forward to muppettrader@btconnect.com
d.

I hope Sporting Options did have segreated accounts.

The others appear to have.

British Betting Exchanges Offer Assurances to Customers


Following the placement of the British betting company Sporting Options under administration, meaning it has financial problems, other betting exchanges were quick to assure customers that their accounts were safe.
In a notice posted on its Web site Monday, Sporting Options said all betting activities the Internet site have been suspended and that two administrators had been appointed to assess the financial position of the company and its business operations. The company statement said it would issue statements to the press and "corresponding directly" with stakeholders and asked that any inquiries to the company be submitted via e-mail rather than by telephone.

"We will endeavor to deal with any queries as quickly as possible, but ask that in the first instance you refer to the information made available on this Web site. Please do not contact us by telephone. This is very important, as it will lead to a delay in the process of dealing with e-mail inquiries as well as the process of administering the company in a timely and efficient manner."

While the Web site offered a link for customers to check their accounts, it noted that "all unsettled markets have been voided."

The company did not explain what events led to Sporting Options being placed under administration.

In light of the Sporting Options development, at least two other betting companies assured customers their accounts are safe.

Stephen Hill, chief executive of Betfair, said client accounts are kept separate from company funds and that "under no circumstances could third parties have a claim on Betfair clients'money...Simply put, your money is as safe (if not safer) with Betfair as with a bank and Betfair will always have 100% of its customers' money available to withdraw whenever they want it."

Another company, Betdaq, issued a statement noting that it was surprised that Sporting Options went into administration and that "we have sympathy for those who may be adversely affected."

Noting that Betdaq is in "rude good health," the statement said Betdaq "customer funds have always been fully ring-fenced from the daily operation expenses of the exchange."

The company added that it was the industry's first exchange to place a $10-million cash bond with its bank in 2001 "in recognition of the absolute priority we give to customer confidence and to the security of customer funds."

Betfair get a few more clients and, possibly more importantly, reassure their own clients. Scrip, you'll get your money back!

It is made clear that very little client money is remaining to pay back to clients. Many people suspected as much since a search at Companies House showed that the company handling client funds had been dissolved back in March.

The structure of this deal is actually very well thought out and a credit to Betfair, who are of course only looking after their own interests, but very effectively indeed.


Betfair Customer Services 16 Nov 09:52

London (16/11/04) Betfair, the leading online betting exchange, has launched a rescue package for Sporting Options customers who have lost money as a result of Sporting Options going into administration on 15th November. This means 5,000 of the 5,300 Sporting Options customers (or 95 per cent) owed money could be compensated in full in the next few days.

The package has been agreed with Sporting Options administrator and approved by Betfairs board of directors.

Our rescue package reflects Betfairs commitment to the betting exchange punter and to the nascent betting exchange industry. It is a testament to Betfairs financial strength that we are in a position to be able to do this, said Stephen Hill, Betfairs chief executive.

The demise of Sporting Options shows why we urgently need the new Gambling Bill, not only to regulate online bookmakers but also to update regulation for the wider betting industry so that all punters are properly protected, said Mr Hill.

Mr Hill noted that customers funds at Betfair are held on trust in a separate, ring-fenced account which is audited by KPMG. Protecting customers funds should be a condition of a bookmakers licence and further, the new Gambling Commission should have the power to conduct spot-check audits of online and bricks and mortar bookmakers to ensure that this is the case, said Mr Hill. The confidence that our customers have in the security of their deposits with Betfair has helped us to become the global leader in our field.

Mr Hill added: We very much welcome Sporting Options customers to Betfair and we look forward to helping as many of them as possible. We hope we have gone some way in restoring their confidence in the betting exchange industry.

Notes to Editors:

Sporting Options customers with up to 1,000 in their Sporting Options account will have the amount they are owed credited to their Betfair account, if they have one. Customers of Sporting Options who do not have a Betfair account will be required to open one and pass the standard Know Your Customer checks, which involves supplying two separate forms of ID and a bank account or card details. Customers with over 1,000 will receive a minimum of 1,000 credited to their Betfair account, or 20% of their total Sporting Options account balance, whichever is the greater. Once credited to your account the amount can be withdrawn at any time. Further, these customers will then be eligible to receive cash rebates in the form of a reduced commission rate until their account balance has been discharged, or until 30th November 2006 at the latest. Conditions of the rescue package include that each customer satisfactorily completes Betfairs Know Your Customer process. Full details of Betfairs rescue package are available on www.betfair.com