Bookmakers cover their bets with exchanges?

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showMeDaMoney
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Bookmakers cover their bets with exchanges?
« on: March 18, 2017, 05:04:44 AM »

Place a bet, over $500 to $1000
The bookie will try and cover this bet, by placing it on the exchange.

As such the Back and Lay odds will go up on the exchange.

Then as the odds go up from the exchange, the bookmaker will raise the price to go slightly under the exchange price.
Anyone noticed a trend or just a coincidence? If its not a coincidence, then one can easily manipulate the market.
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dealer wins
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Re: Bookmakers cover their bets with exchanges?
« Reply #1 on: March 18, 2017, 06:25:16 AM »

Most books dont cover bets on the exchanges.  They try to take balanced bets on all sides.  Hence the name "bookmaker"
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maletaja
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Re: Bookmakers cover their bets with exchanges?
« Reply #2 on: March 18, 2017, 07:07:17 PM »

Why the hell they  need to cover exhange to pay commision???
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maletaja
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Re: Bookmakers cover their bets with exchanges?
« Reply #3 on: March 19, 2017, 03:05:46 PM »

Mayby there could be some logic. But it should be big liquid market, otherwise they dont give away only commision but juice...
But if they get some highroller 5% juice bets they can give back 1.2% and still earn decent sum
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antemartic
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Re: Bookmakers cover their bets with exchanges?
« Reply #4 on: March 20, 2017, 12:26:37 AM »

Mayby there could be some logic. But it should be big liquid market, otherwise they dont give away only commision but juice...
But if they get some highroller 5% juice bets they can give back 1.2% and still earn decent sum
Of course soft books are unbalanced. And of course there is no logic for big exposure where they have juice 5% it only happens when there is value so they just can cut some losses
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showMeDaMoney
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Re: Bookmakers cover their bets with exchanges?
« Reply #5 on: March 20, 2017, 11:12:46 AM »

Its very easy for a large bookmaker to make money using the exchange, If the rest of the bookies are following the bookies odds.

The top bookies can take odds at the highest value and then drop their odds.
Once they drop their odds, the bookmakers are all like sheep. (domino effect)
Then the exchange will follow. Then they make easy profit.
They can also do the reverse, by providing odds at a lower cost, and then increasing them to take the exchange odds.

But they are not using their money, they are using your money.
Anyway I can't prove this yet, but I have some real betting experience with real money.
and so far it could be a coincidence.  But it makes alot of sense for the top bookies to do this.
For them they are essentially arbing with your money, it doesn't matter who wins or loses.

Realistically they can only do this with large matches that already have a large pool.
Which is why the bookmakers want you to play the big matches/events.

« Last Edit: March 20, 2017, 11:17:02 AM by showMeDaMoney » Logged
Malteser
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Re: Bookmakers cover their bets with exchanges?
« Reply #6 on: March 29, 2017, 08:58:15 PM »

Bookmakers will rarely bet on the exchanges. There is no reason to do this, because they'll be taking poor value on the exchanges and hence lose money. Only if the liabilities are monstrously large would they consider it.
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Re: Bookmakers cover their bets with exchanges?
« Reply #7 on: March 29, 2017, 10:12:21 PM »

Bookmakers will rarely bet on the exchanges. There is no reason to do this, because they'll be taking poor value on the exchanges and hence lose money. Only if the liabilities are monstrously large would they consider it.

Sorry to be blunt but this is nonsense.  Bookmakers want to have a balanced book and will adjust their odds to achieve this.  In the rare event they have a wildly exposed position they will either lay with another book (They have contacts and agreements to do this just like on course books) or will sometimes let an exposed position ride and possibly take a hit.

They never use exchanges, and thats from discussing it with employees from books when I was once a VIP at them lol
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maletaja
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Re: Bookmakers cover their bets with exchanges?
« Reply #8 on: March 30, 2017, 07:40:59 AM »

Agree, they want to take full value from customers not profiting betfair...Why risk managers get paid for?If they dont want to get action from some line the odds will be so poor. Probably they have contract with other bookies  to exhange capacity if need to if some highroller makes huge bet with shit odds...
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mastpro
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Re: Bookmakers cover their bets with exchanges?
« Reply #9 on: April 03, 2017, 11:31:32 AM »

Undoubtedly, such methods are used by small bookmakers. Big bookies do not need it.
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