The simple fact was not everyone could get a slice of that pie and would therefore leave bets up or adjust them to balance any unmatched portions of their books. They actually put liquidity into the market, Betfair's version never adds liquidity it just takes from existing bets and also does it at source once bets enter their servers, taking (non runners aside) a guarenteed profit.Kafkaesque wrote: ↑Sun Oct 29, 2017 2:31 pm
On the second, I get what you're saying, and I'll agree that it's skeechy morally - at best - if it's Betfair cleaning up that value. Morals aside that value was never going to fall in the laps of any old trader, though imho. If Betfair isn't doing it, it would just be an arms race to see who has best/fastest bot and/or internet connection, measured in microseconds, to hover that free money as fast as possible, I would think.
Markets will always find their own equilibrium as people step in to fill in the gaps making things more efficient. Prior to x-matching things were working fine and there were plenty of market makers adding prices and liquidity to the market. Betfair took away the need for the majority of them with x-matching and the liquidity has suffered ever since. What's the point of trying to make a book if Betfair are going to swoop and take any small % as soon as it appears from you.