"Types" of Markets

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abgespaced
Posts: 176
Joined: Sun Aug 23, 2020 2:25 am
Location: Australia

This idea comes off the back of one of Peter's video's regarding the formation of a market.

He states that as the market takes shape the pieces of the puzzle begin to come together to form the overall picture of the market.

Following this logic means that there is a certain number of market types for each given sport.

If, in forming each picture of a market, there was not a particular type of market to be formed, then it would be impossible to say beforehand what market "type" was.

The gift of hindsight tells us what type of market is WAS. But to form any kind of predictive idea about what market will BECOME means that it has to fit into one or another category, of which there can only be a limited number of variations.

I am wondering if this applies to every sport and if so, how many different types of markets are there for each sport.

Thoughts?
Anbell
Posts: 2004
Joined: Fri Apr 05, 2019 2:31 am

This is a good question, and I've been thinking about it from a horse racing pre-off perspective.

One of the most obvious is how stable/volatile the market is expected to be. Prize money might (?) be a reasonable proxy. Race type would also be a reasonable indicator.

I think that the price of the fave is also important, as is the price of the 2nd fave. A race where the fave is 2.5 and the 2nd fave is 2.9 is different than a race where the 2nd fave is 5.0.

I'm not sure about field size or race distance. I suspect the first, and not the second.

Anyone else?
rik
Posts: 1583
Joined: Sat Jan 25, 2014 5:16 am
Location: London

not sure race distance makes a difference but would say in general terms larger fields make for more stable prices, probably because heavy betting on one wont influence the other runners as much
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