Relationship between liquidity on Exchange and efficency on the prices

[blackygar]

Hi guys, happy to have my first post on the forum.

I don't have access to the UK betfair exchange and liquidity as I'm from Spain. The liquidity here is shit and for trading I have and Orbit account, but recently a question came to my mind about finding the value on prices. Can this lack of liquidity can be linked with lack of efficency on the markets? I will explain myself.

Sometimes I'm watching a match and just for curiosity I compare odds between my accounts. Sometimes on Betfair are higher and other are lower. So I though that maybe that could be an edge in my favour but not sure if this is really like this.

Cheers guys.

[Dallas]

As the Spanish Betfair is only available to Spanish users and orbit will only be used by people who don't have a proper Betfair account I don't think anyone here will know if there are any delays or reasons why you couldn't do this - as far as I am aware if you can see the prices available and the money waiting at each and can place the bets without delays there no reason why you can't profit from doing this

[Kai]

Sure, an illiquid market can be less efficient pricewise. You could try to use this providing you can get matched consistently as that would be the hard part.

I'm just having a look at the Spanish exchange and doesn't seem that bad, City match in 4 days has 16k matched compared to 66k on the main exchange so going to be tradable.

It's far from ideal to trade on your exchange but you could probably make it work if you adopted a more "market making" approach.

[jamesedwards]

Hi guys, happy to have my first post on the forum.

I don't have access to the UK betfair exchange and liquidity as I'm from Spain. The liquidity here is shit and for trading I have and Orbit account, but recently a question came to my mind about finding the value on prices. Can this lack of liquidity can be linked with lack of efficency on the markets? I will explain myself.

Sometimes I'm watching a match and just for curiosity I compare odds between my accounts. Sometimes on Betfair are higher and other are lower. So I though that maybe that could be an edge in my favour but not sure if this is really like this.

Cheers guys.

Are you sure you're viewing the latest main Betfair prices? If you're not logged in then there is an enforced delay to prices shown. I'd be surprised if there was often anomalies between prices offered on the two platforms because someone would be hoovering them up if they ever existed.

[ShaunWhite]

I'd be surprised if there was often anomalies between prices offered on the two platforms because someone would be hoovering them up if they ever existed.

The spread kills it, one side is better but the other side is worse. Maybe 1.9/2.0 on one and 1.8/2.2 on the other, different prices but no arb.
You wouldn't find 1,9/2.0 and 1.7/1.8 for the reason you say.

[Kai]

Well you wouldn't need anomalies and money on offer, with basic market making it's about money getting matched at poor prices

[blackygar]

Yep the money pre-off is not that bad because the few matched bettors here and few gamblers. But inplay the real money never comes and if comes only on the very top matches. So will take into your account your replies.

Thanks so much