Still relatively new to betfair, I am trying to get my head around how betfair apply the reduction factor. If I was to win bet or lay each runner in a race, other than the overround, is it possible that I could seriosly get my fingers burnt in case of a late scratching?
rg
For point of record, on accassion I will Dutch all runners to a personal market for varying win / loss amounts.
Reduction Factor
The way it would effect you if you are backing multiple selections in a market is as follows.
If the horse that was withdrawn has a a bigger price when you backed it that the reduction factor
calc:
reduction factor 26.5 %
1 / 26.5 x 100 = 3.77
If you backed it bigger than 3.77 you may lose a small amount on the other bets. If however you backed it at 3 you would profit. (and in reverse on the lay side)
If the reduction factor is less than 2% (na) you would profit if you had a winner by the stake of the withdrawn horse.
Someone please correct this if I am wrong
I don't think you would be in any danger with a simple dutch bet. The problems arise when you keep turning the book over and over on the overround where you can put in 1000's and lose 1000's with a small stake. The most famous and funny example of this was the Arsenal Carling Cup 1st goal scorer market. It was flagged up on the moneysavingexpert web site that there was a 20% overround. The muppets were on the thread bragging how they were buying new cars and paying off mortgages as they were recycling the money over and over. Someone forgot to tell them about the reduction factor as there were 25 players listed and there were some serious withdrawals. As the penny dropped there were loads of them with brown underpants. If anyone has a link to this thread post it up, best comedy moment ever. If I remember right 1 guy ran up a 20k red book with only £100 in his account. Betfair wrote all this bets off and stood the loss. Ah! the good old days!
If the horse that was withdrawn has a a bigger price when you backed it that the reduction factor
calc:
reduction factor 26.5 %
1 / 26.5 x 100 = 3.77
If you backed it bigger than 3.77 you may lose a small amount on the other bets. If however you backed it at 3 you would profit. (and in reverse on the lay side)
If the reduction factor is less than 2% (na) you would profit if you had a winner by the stake of the withdrawn horse.
Someone please correct this if I am wrong
I don't think you would be in any danger with a simple dutch bet. The problems arise when you keep turning the book over and over on the overround where you can put in 1000's and lose 1000's with a small stake. The most famous and funny example of this was the Arsenal Carling Cup 1st goal scorer market. It was flagged up on the moneysavingexpert web site that there was a 20% overround. The muppets were on the thread bragging how they were buying new cars and paying off mortgages as they were recycling the money over and over. Someone forgot to tell them about the reduction factor as there were 25 players listed and there were some serious withdrawals. As the penny dropped there were loads of them with brown underpants. If anyone has a link to this thread post it up, best comedy moment ever. If I remember right 1 guy ran up a 20k red book with only £100 in his account. Betfair wrote all this bets off and stood the loss. Ah! the good old days!