Betfair price reduction % when non runner

[easty]

Could someone please explain in laymans terms the basic workings and fairness of the % price reduction when there is a non runner.

case study -
i backed a horse at 2.12 when nr was announced resulting in a 50% price reduction.
my bet was recalculated at 1.05 when it was readily available at 1.3 on the reformed market.
the industry rule 4 was 50p which would have equated to a price of 1.55

thank you

[Euler]

Betfair adjust reductions factors through the day, but sometimes they can be quite out of whack.

[jamesedwards]

Could someone please explain in laymans terms the basic workings and fairness of the % price reduction when there is a non runner.

case study -
i backed a horse at 2.12 when nr was announced resulting in a 50% price reduction.
my bet was recalculated at 1.05 when it was readily available at 1.3 on the reformed market.
the industry rule 4 was 50p which would have equated to a price of 1.55

thank you

14.6 Betfair Non-Runner Rule
Betfair's non-runner rule relates to the adjustment of odds on bets already matched when a horse in a race is declared a non-runner. In order to make the adjustment Betfair applies a reduction factor to the remaining runners. The reduction factor allocated to a non-runner is a calculation (the details of which are described below) of that horse's chances of winning (or being placed, etc as appropriate) and is applied to bets already matched on the other runners in the relevant market or markets.
Any horse listed when the relevant market is loaded which does not subsequently come under starter's orders is deemed to be a non-runner.
When the market is loaded each horse is given a 'reduction factor', based on a forecast price, which is expressed as a percentage. These reduction factors may be updated periodically at the discretion of Betfair based on trading in the market, but after approximately 15 minutes (approximately 5 minutes for Australian and US markets) from the scheduled 'off' time of a given race, they will be updated only in exceptional circumstances. The current reduction factor percentage for each horse can be viewed on the 'info' page on the Betfair website or by asking the Helpdesk.
Accurate reduction factors will only be applied to selections in the event of a non-runner. Once a non-runner is declared each selection in the market will be given an appropriate reduction factor. Reduction factors can be amended at Betfair’s discretion at any time throughout the market life cycle (including post-race).
For Australian racing, reduction factors may be updated periodically at the discretion of Betfair based on trading in the market, but after approximately five minutes from the scheduled off time of a given race they will be updated only in exceptional circumstances.
Reductions will be made to both win and place markets but applied differently (as described below), and horses will have a different reduction factor for each market.
As soon as Betfair becomes aware that a horse is an official non-runner or a highly likely non-runner, following a statement to the press from connections, the following will happen:
All matched bets on that horse will be void and the horse will be removed from the market.
In the win market: if the reduction factor of the non-runner is 2.5% or greater, the traded price of all the matched bets on the remaining horses will be reduced by an amount equal to the non-runner's final reduction factor and all the unmatched offers to lay will be cancelled. If the non-runner's reduction factor is less than 2.5%, reductions will not be applied and unmatched bets will not be cancelled.
In the place market the reduction factor of all non-runners will be applied (even if less than 2.5%) and the potential winnings in relation to matched bets on the remaining horses will be reduced by an amount equal to the non-runner's final reduction factor. Only if the non-runner's reduction factor is 4.0% or greater will all the unmatched offers to lay be cancelled.
All the reduction factors on the remaining horses will be adjusted to reflect their improved chance of winning.
Reduction factors are not applied to bets which are struck in-play. However, if a market is turned in-play prematurely by error (or, for example, there is a false start), all bets matched during this time will be subject to any later reduction factor, provided the market is turned out of play before the race commences. In the event of a late withdrawal, Betfair reserves the right to remove the runner after completion of the race. In this case only those bets matched prior to the off will be affected by a reduction factor.
In the event of a non-runner being removed from a race in error or following incorrect information regarding a runner’s participation, Betfair will reinstate both the runner and all previously matched bets associated with that runner. All bets made between the time of withdrawal and reinstatement will be void in both the place market and the win market. The reduction factor applied to matched bets at the time of withdrawal will be reversed and the original prices will become valid.
Any non-runners will be removed from the relevant markets in the order in which they are brought to Betfair's attention. If Betfair becomes aware of more than one non-runner at the same time, it will remove the non-runners from the relevant markets in racecard order.
If a runner is not included in a market because of an error or because of incorrect information regarding a runner’s participation, Betfair reserve the right to introduce the missing runner into the market at any time prior to settlement (even after the race has been run), provided that Betfair has determined that the missing runner is not a material runner (i.e. a selection with a reduction factor of approx. 2.5% or less in the win market). In such circumstances, all pre-play unmatched and matched bets will stand, however if the runner is not introduced before the start of the race, all in-play bets will be void. However, if the missing runner is deemed to be a material runner, then the malformed market will be void and a new market will be loaded where possible.
14.7 How the Reductions are applied for Exchange markets
In the win market, reductions will be made on the traded price.
For example: if the non-runner's final reduction factor is 25% the traded price on all previously matched bets on other horses will be reduced by 25% - traded price of 8.0 would become 6.0 etc. And these might be further reduced if another horse is subsequently declared a non-runner.
In the EW Market, reductions will be made on the traded win price. The advertised place terms will then apply to the revised win prices.
For example: if the non-runner's final reduction factor is 25% the traded price on all previously matched bets on other horses will be reduced by 25% - - traded price of 8.0 would become 6.0. If the each Way terms were 1/5th odds for 3 places, the corresponding price for the Place portion of the bet would reduce from 2.4 to 2.0.
In the place market, reductions will be made to the potential winnings on the bet only, and not the traded price.
For example: if the non-runner's final reduction factor is 25% the potential winnings on all previously matched bets on the other horses will be reduced by 25% - a traded price of 8.0 would become 6.25. For example a £10 bet on a horse to be placed at a traded price of 8.0 would provide winnings of £70. If there is a non-runner with a reduction factor of 25% in the race, that factor will be applied to the £70 of potential winnings leaving potential winnings of £52.50. Therefore the revised traded price will be 6.25.
The traded price may be further reduced if any other horse(s) is subsequently declared a non-runner, however odds cannot be reduced below 1.01.
Reserves: A reserve runner may appear in the relevant markets but will have a non-applicable reduction factor until Betfair has received confirmation that it is a confirmed runner, in which case an applicable reduction factor may apply to it.
For the avoidance of doubt, any reduction factor applicable to a non-runner replaced by a reserve, will be applied to all bets struck on the relevant markets, prior to the removal from those markets of such non-runner by Betfair. Likewise, should a reserve runner become a confirmed runner but subsequently become a non-runner, any reduction factor applicable to such non-runner will be applied to all bets struck on the relevant markets, prior to the removal from those markets of such non-runner by Betfair.

[Anbell]

Could someone please explain in laymans terms the basic workings and fairness of the % price reduction when there is a non runner.

case study -
i backed a horse at 2.12 when nr was announced resulting in a 50% price reduction.
my bet was recalculated at 1.05 when it was readily available at 1.3 on the reformed market.
the industry rule 4 was 50p which would have equated to a price of 1.55

thank you

Which race?

[firlandsfarm]

14.6 Betfair Non-Runner Rule
Betfair's non-runner rule relates to the adjustment of odds on bets already matched when a horse in a race is declared a non-runner. In order to make the adjustment Betfair applies a reduction factor to the remaining runners. The reduction factor allocated to a non-runner is a calculation (the details of which are described below) of that horse's chances of winning (or being placed, etc as appropriate) and is applied to bets already matched on the other runners in the relevant market or markets.
Any horse listed when the relevant market is loaded which does not subsequently come under starter's orders is deemed to be a non-runner.
When the market is loaded each horse is given a 'reduction factor', based on a forecast price, which is expressed as a percentage. These reduction factors may be updated periodically at the discretion of Betfair based on trading in the market, but after approximately 15 minutes (approximately 5 minutes for Australian and US markets) from the scheduled 'off' time of a given race, they will be updated only in exceptional circumstances. The current reduction factor percentage for each horse can be viewed on the 'info' page on the Betfair website or by asking the Helpdesk.
Accurate reduction factors will only be applied to selections in the event of a non-runner. Once a non-runner is declared each selection in the market will be given an appropriate reduction factor. Reduction factors can be amended at Betfair’s discretion at any time throughout the market life cycle (including post-race).
For Australian racing, reduction factors may be updated periodically at the discretion of Betfair based on trading in the market, but after approximately five minutes from the scheduled off time of a given race they will be updated only in exceptional circumstances.
Reductions will be made to both win and place markets but applied differently (as described below), and horses will have a different reduction factor for each market.
As soon as Betfair becomes aware that a horse is an official non-runner or a highly likely non-runner, following a statement to the press from connections, the following will happen:
All matched bets on that horse will be void and the horse will be removed from the market.
In the win market: if the reduction factor of the non-runner is 2.5% or greater, the traded price of all the matched bets on the remaining horses will be reduced by an amount equal to the non-runner's final reduction factor and all the unmatched offers to lay will be cancelled. If the non-runner's reduction factor is less than 2.5%, reductions will not be applied and unmatched bets will not be cancelled.
In the place market the reduction factor of all non-runners will be applied (even if less than 2.5%) and the potential winnings in relation to matched bets on the remaining horses will be reduced by an amount equal to the non-runner's final reduction factor. Only if the non-runner's reduction factor is 4.0% or greater will all the unmatched offers to lay be cancelled.
All the reduction factors on the remaining horses will be adjusted to reflect their improved chance of winning.
Reduction factors are not applied to bets which are struck in-play. However, if a market is turned in-play prematurely by error (or, for example, there is a false start), all bets matched during this time will be subject to any later reduction factor, provided the market is turned out of play before the race commences. In the event of a late withdrawal, Betfair reserves the right to remove the runner after completion of the race. In this case only those bets matched prior to the off will be affected by a reduction factor.
In the event of a non-runner being removed from a race in error or following incorrect information regarding a runner’s participation, Betfair will reinstate both the runner and all previously matched bets associated with that runner. All bets made between the time of withdrawal and reinstatement will be void in both the place market and the win market. The reduction factor applied to matched bets at the time of withdrawal will be reversed and the original prices will become valid.
Any non-runners will be removed from the relevant markets in the order in which they are brought to Betfair's attention. If Betfair becomes aware of more than one non-runner at the same time, it will remove the non-runners from the relevant markets in racecard order.
If a runner is not included in a market because of an error or because of incorrect information regarding a runner’s participation, Betfair reserve the right to introduce the missing runner into the market at any time prior to settlement (even after the race has been run), provided that Betfair has determined that the missing runner is not a material runner (i.e. a selection with a reduction factor of approx. 2.5% or less in the win market). In such circumstances, all pre-play unmatched and matched bets will stand, however if the runner is not introduced before the start of the race, all in-play bets will be void. However, if the missing runner is deemed to be a material runner, then the malformed market will be void and a new market will be loaded where possible.
14.7 How the Reductions are applied for Exchange markets
In the win market, reductions will be made on the traded price.
For example: if the non-runner's final reduction factor is 25% the traded price on all previously matched bets on other horses will be reduced by 25% - traded price of 8.0 would become 6.0 etc. And these might be further reduced if another horse is subsequently declared a non-runner.
In the EW Market, reductions will be made on the traded win price. The advertised place terms will then apply to the revised win prices.
For example: if the non-runner's final reduction factor is 25% the traded price on all previously matched bets on other horses will be reduced by 25% - - traded price of 8.0 would become 6.0. If the each Way terms were 1/5th odds for 3 places, the corresponding price for the Place portion of the bet would reduce from 2.4 to 2.0.
In the place market, reductions will be made to the potential winnings on the bet only, and not the traded price.
For example: if the non-runner's final reduction factor is 25% the potential winnings on all previously matched bets on the other horses will be reduced by 25% - a traded price of 8.0 would become 6.25. For example a £10 bet on a horse to be placed at a traded price of 8.0 would provide winnings of £70. If there is a non-runner with a reduction factor of 25% in the race, that factor will be applied to the £70 of potential winnings leaving potential winnings of £52.50. Therefore the revised traded price will be 6.25.
The traded price may be further reduced if any other horse(s) is subsequently declared a non-runner, however odds cannot be reduced below 1.01.
Reserves: A reserve runner may appear in the relevant markets but will have a non-applicable reduction factor until Betfair has received confirmation that it is a confirmed runner, in which case an applicable reduction factor may apply to it.
For the avoidance of doubt, any reduction factor applicable to a non-runner replaced by a reserve, will be applied to all bets struck on the relevant markets, prior to the removal from those markets of such non-runner by Betfair. Likewise, should a reserve runner become a confirmed runner but subsequently become a non-runner, any reduction factor applicable to such non-runner will be applied to all bets struck on the relevant markets, prior to the removal from those markets of such non-runner by Betfair.

Well that's cleared that one up!