Betdaq XSP Permissions (banned)

[LinusP]

So I have been banned from Betdaq XSP, anyone else had this before? Only been taking for about a month with only around 7k in profit.

By the looks of things they take the exposure unlike Betfair..

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[Dallas]

Its the first I've heard of it happening to anyone

[Bear's The Name]

That is very worrying as I use Betdaq XSP as part of my betting strategy - without the failsafe of SP to balance things up I would be horribly exposed in many markets.

Do you mind if I ask roughly what you were doing? Not in detail, obviously - just a general idea.

[LinusP]

That is very worrying as I use Betdaq XSP as part of my betting strategy - without the failsafe of SP to balance things up I would be horribly exposed in many markets.

Do you mind if I ask roughly what you were doing? Not in detail, obviously - just a general idea.

I was using it outright, no other orders in the market only XSP, on all UK/IE racing, 90% of the runners, turning over about £500 per race.

[Bear's The Name]

Hi Linus,

According to the FAQ's on their site, they guarantee an XSP liability of up to £3k on UK racing and £1.5k on Irish racing if there aren't enough layers. I am assuming you are a backer.

My guess is the same as you suggested in your earlier post - that there aren't enough layers in the market so you have been winning BQ's money rather than other punters.

I do leave lay bets up to convert to XSP if unmatched but it's a small percentage of my overall bets (probably less than one quarter) and I am a much smaller players than you so sadly not enough to help.

[Euler]

That's a new one for me, I put a lot through at XSP and haven't had a problem. But I'm pretty evenly distributed across both sides of the book.

[LinusP]

I was backing and laying, pretty much even on the amounts, just emailed asking if I can have use of XSP as a backup and place orders into the market but been told I am permanently banned.

[spreadbetting]

Not too surprised they've barred you if you were taking £7K out in your first month and it came out of their pockets, especially as you'd obviously found a niche covering 90% of the runners at their SP. The fact they were standing liabilities themselves to £3K would always leave them open to being picked off especially on lower liquidity markets. Have you posted on twitter etc to see if others have also been barred?

[Bear's The Name]

Do you think it is layers they are short of or backers?

Presumably it has to be one or the other as if things were reasonably balanced they wouldn't be needing to put up their own money?

Forgive me if this is a naive comment, I've never fully understood all the nuances of the XSP/ BSP systems.

[LinusP]

Not too surprised they've barred you if you were taking £7K out in your first month and it came out of their pockets, especially as you'd obviously found a niche covering 90% of the runners at their SP. The fact they were standing liabilities themselves to £3K would always leave them open to being picked off especially on lower liquidity markets. Have you posted on twitter etc to see if others have also been barred?

I was well under what they garrentee and to be honest I though I would be helping their liquidity in XSP but looks like they cover the liability. Its tricky to work out as the XSP price almost seems random, can be very different to BSP.

[spreadbetting]

I'd imagine it simply the fact you'd taken out £7K in a monththat they barred you other than anything else.

What sort of percentages were they settling XSP at ? Were they keeping as close to 100% or were they publishing overbroke/overround books at times?

Thanks

[Euler]

My observations on XSP are that the spread is much tighter than BSP.

BSP can be pretty random and is often exploited to the point where it's risky to take BSP, whereas XSP seem pretty clean to me.

[pythonic]

Ok, so this paragraph from their FAQs implies that they guarantee the minimum liabilities with their own money:

How is XSP calculated?


XSP is calculated by Betdaq based on the prices and volumes matched in the exchange market on an event. Betdaq does not publish the XSP calculation algorithm and may adjust it from time to time without notice.

How much can I bet at XSP?

The amount that you can stake at XSP is ultimately determined by the volume of XSP backers and layers in the market however to ensure that customers can use XSP with confidence Betdaq will guarantee XSP liquidity to certain amounts at our discretion.
UK Racing win markets - Layers liability of £3000 per market (or currency equivalent)
Irish Racing win markets - Layers liability of £1500 per market (or currency equivalent)
These amounts are subject to change without notice and Betdaq reserves the right to remove XSP bet permissions and/or cancel XSP bets from customer who are deemed to be abusing these guarantee limits either alone or in conjunction with other customers.

[dropss81]

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One more Victim

[Euler]

I've used it continuously since it was implemented and never had a problem. Obviously haven't found the exploit.