Premium Charges - should I worry?

[getagrip68]

Hi All,

First off can I say what a great community and source of information the forum is with some clearly very knowledgeable contributors.

I've done a lot of reading and watched Peter's YouTube videos on the subject issue but I'm still not sure I fully grasp the situation in relation to how if affects my current betting style.

I'm a long standing bettor (37 years and counting) and have used exchanges since their inception. Over that time my deposit/withdrawal ratio on Betfair is around 3% in the red. I have spells of taking things seriously and at other times I've just punted for fun. After downloading Bet Angel and taking out a subscription I'm currently going through one my more serious phases.

I don't generally trade but use the software to place lay bets (through automation) on around ten markets per day. My current stakes are not large in that I lay a selection to lose £40 (which is split into laying to lose a tenner four times). I have a high strike rate but win small amounts each time making a few percent on turnover. My results (to me at least) look very much like a trader (no bad thing), but I think this makes me vulnerable to premium charges if I continue in this vein.

By my reckoning over the last week or so I have played in 58 markets resulting in 55 winning bets. The profit from this sequence was roughly £225 on which I paid £6.36 commission (I'm on the basic plan). Note that I think this was an above average run of results but the commission paid is is obviously well below (if I understand things correctly) 20% of profits.

So, can I expect an email from the Betfair commission police in my inbox any time soon? Is there anything I can do to mitigate it* or am I worrying over nothing.

* my current thought is to dutch a couple of selections in the race which I am also placing a lay bet although this is the 'research' phase and I'm not sure it bump up the commission sufficiently.

If you got this far thanks for reading!

[megarain]

If you are a net loser on the exchange, you have no worries.

Only start getting worried (about PC) when you are maybe 5-20k ahead.

You will get a week's grace from paying anyway - and there is a 1k buffer.

There are many explanations on youtube -

Here's a link to start you off.

https://bitedge.com/blog/betfair-premiu ... -employee/

[Derek27]

Hi All,

First off can I say what a great community and source of information the forum is with some clearly very knowledgeable contributors.

I've done a lot of reading and watched Peter's YouTube videos on the subject issue but I'm still not sure I fully grasp the situation in relation to how if affects my current betting style.

I'm a long standing bettor (37 years and counting) and have used exchanges since their inception. Over that time my deposit/withdrawal ratio on Betfair is around 3% in the red. I have spells of taking things seriously and at other times I've just punted for fun. After downloading Bet Angel and taking out a subscription I'm currently going through one my more serious phases.

I don't generally trade but use the software to place lay bets (through automation) on around ten markets per day. My current stakes are not large in that I lay a selection to lose £40 (which is split into laying to lose a tenner four times). I have a high strike rate but win small amounts each time making a few percent on turnover. My results (to me at least) look very much like a trader (no bad thing), but I think this makes me vulnerable to premium charges if I continue in this vein.

By my reckoning over the last week or so I have played in 58 markets resulting in 55 winning bets. The profit from this sequence was roughly £225 on which I paid £6.36 commission (I'm on the basic plan). Note that I think this was an above average run of results but the commission paid is is obviously well below (if I understand things correctly) 20% of profits.

So, can I expect an email from the Betfair commission police in my inbox any time soon? Is there anything I can do to mitigate it* or am I worrying over nothing.

* my current thought is to dutch a couple of selections in the race which I am also placing a lay bet although this is the 'research' phase and I'm not sure it bump up the commission sufficiently.

If you got this far thanks for reading!

It's not your deposit/withdrawal ratio that's important but your gross profit/loss. If you're in loss or break-even and have paid commission your commission percentage will be substantial so you'll have a large PC deficit.

[getagrip68]

Thank you both, looks like I have a way to go before I need to worry about it then!