Horse withdrawn but market keeps trading???

[jonesd4]

Hi guys (and gals)

Yesterday there was an incident where a horse reared near the start and threw the jockey, an ambulance attended and the area was temporarily screened off whilst he was attended too. Meanwhile the horse was caught further down the track. The live video announcers said that the horse had now been withdrawn but the trading continued on betfair for a further three minutes.

What is your opinion on this?

cheers

David

[Euler]

That's normal

[jonesd4]

OK....................thanks

[Crazyskier]

That's normal

Peter would you elaborate on this please?Forgive my ignorance, but why don't such horses immediately go to odds of 1000 as fallers etc do?

After all, if they're never going to win the race, why are some people accepting bets of 3s, 5s 20s etc? Is there some kind of settlement based upon matched bets prior to the event?

[jonesd4]

...................as an additional comment to my first....

I have also noticed this happening on horses that are withdrawn for not coming under starters orders when refusing to enter the starting gates in a timely manner.......

You can continue to back and lay for a period after the race goes into play.

The only thing I have noticed after that is that the Betfair option to cash out in play is removed "due to a late withdrawl"

I presume this is all normal but would echo Crazyskier's request for a deeper understanding.

thanks

David

[LinusP]

If a horse does not run but is still in the market there is a reduction factor applied to the runner once the race has been completed and all bets made on the withdrawn runner are void.

The cross matcher is unable to cope with this as it would be possible to manipulate it so it is turned off, this means cash out is not possible.

With the cross matcher off the book goes all over the place inplay. Jollygreen explained this in more detail a few years ago but I cant find the post.

[jonesd4]

Thanks for your explanation LinusP

I was just curious as to why it doesn't instantly go to odds of 1000 as Crazyskier mentions

[megarain]

In the early days, "rogue traders", would put in orders to back the non-runner at evens, or something similar, so, the over-round on the market, was collosal.

U could back the rest, knowing, it was a non-runner, with no deduction (in runn).

Betfair came down v hard, and told them to stop, or else.

I preseume this was becos they were getting screwed by cross-matching etc, or sme preferred clients were being screwed.

Now, it still affects over-round, but, not by so much.

[Euler]

I was just curious as to why it doesn't instantly go to odds of 1000 as Crazyskier mentions

The market distorts to adjust for the price of withdrawn horse.

Let's say the market has three runners, each of them with an equal chance.

If one was withdrawn and went to 1000 the book % value would only be 66% when it should be 100%. So Betfair step in and adjust the market to reflect the new odds. They do this by applying a reduction factor.

You could exploit XM when this happens but Betfair now switch this off as they would lose. Which immediately implies they win a lot through XM else why toggle it's settings, just leave it off and let somebody else take the risk.

[jonesd4]

Hi Peter

Thanks for your detailed reply. Betfair do seem keen to try and make money from all angles.......................that's big business I suppose!!

regards..............David