BSP WHEN USING PRACTICE MODE

[airtomoreira]

I think I know the answer to my own question, but as an infrequent user of BA, I'd appreciate confirmation (or otherwise) that my thinking is correct.

When in Practice Mode, the BSP that shows for any horse in a horse race is different to what the BSP would be if I were actively (in live mode) backing or laying the horse. For example:

A horse is allocated a BSP of 5, there being outstanding back bets at the off of £100, which are either "back at SP" or "take SP if unmatched", and similar liabilities on the lay side of £400. Because I'm in Practice Mode, I'm not affecting this calculation. However, if I were in live mode, and wanted to "Back at SP" to the tune of £10, then the BSP would be calculated as (£400 / £110) + 1 = 4.64.

I ask because the results I'm achieving in Practice Mode will, if I'm correct with the above, be better than the reality of entering the "live" market, where my stake will affect the BSP. In a market with good liquidity, say a typical UK horse race, my £10 is only going to affect the BSP marginally, but if I'm staking in the likes of US markets, with low liquidity, then my £10 could have a significant effect, especially if the horse in question is an outsider. There was an instance a few hours ago where a horse won at a BSP of 220, yet had I staked just £2 on a "take BSP" basis, the BSP would have been around 150 (assuming all of the above is correct).

Thoughts welcome! Thanks in advance.

[jamesedwards]

I don't know the calculation of SP but you are correct in that the value of SP returned will be lower when you include your real money stake, and it follows that the less liquid the market the more value you will lose.

Impact of stake is an important consideration whether using SP or not. I ran countless automations before it dawned on me the % return can drop significantly even at small stake increments. What can return 101% at £2 might drop to 99% at £5, even in relatively liquid markets.

[weemac]

I stopped using BSP as a trade closure method when I realised that my own liability could be up to 1/3 of the market's total, even in liquid markets. Never touch it now.

Edit: Prime example is this pathetic specimen from today's 3:45, 2.20 odds second favourite.

[jamesedwards]

I stopped using BSP as a trade closure method when I realised that my own liability could be up to 1/3 of the market's total, even in liquid markets. Never touch it now.

Edit: Prime example is this pathetic specimen from today's 3:45, 2.20 odds second favourite.

It's like betting on the tote at a small greyhound track where £100 bet halves the odds

[Anbell]

It's like betting on the tote at a small greyhound track where £100 bet halves the odds

Except it isnt really, because if there's an imbalance the exchange sucks up any difference. cf the difference between farSP and nearSp