reduction factor help

[mcfc1981]

can someone help me out here.
backed the fav at folk 16:40 at 1.71 (before off)
for 1k layed in play at 1.7
the no runners reduction factor was 11%
how have i ended up -£180.

thought i wud be minus 11% of 710 (1.71)
or have i got the reduction factor all wrong

[alanof]

I think I saw someone else on here today with a similar issue. I didn't see that race but as I understand it under Betfairs rules reduction factors do not apply to bets made in play which can be a real mare for late withdrawals...

[Bet Angel]

I'm pretty sure they don't adjust the in-play odds to reflect the reduction factor. When I've had to get out inplay all the odds have been adjusted afterwards?

The RF yesterday, we had marked down as 18.20%

[alanof]

I didn't see the race, but I was thinking it might be a case where there was a late withdrawal and Betfair didn't remove the runner from the race until after it was completed. Then market prices would initially just have adjusted lower to reflect this in play, with the reduction factor only applying to pre-race bets struck at a higher price - am I all wrong here...

[Bet Angel]

I think we are just talking at crossed purposes. The odds would 'look' the same but are adjusted afterwards. Whichever way, it would be very difficult to work out the true odds in-play. So I think we are both right but just expressed it in different terms.

[Bet Angel]

We just looked at the other thread and it seems to confirm that the bet was just voided during the in-play period? That doesn't seem correct from all the previous settlements we have seen of this nature. Would be interested in getting clarification on exactly what happened?

[andyfuller]

can someone help me out here.
backed the fav at folk 16:40 at 1.71 (before off)
for 1k layed in play at 1.7
the no runners reduction factor was 11%
how have i ended up -£180.

thought i wud be minus 11% of 710 (1.71)
or have i got the reduction factor all wrong

The reduction factor applies to the odds and not the potential winnings unless you are doing it in the place market where it applies to the winnings and not the odds.

So 11% off 1.71 becomes 1.5219 so you have backed it for £1,000 and your potential winnings are therefore £521.90

So:

~ You have backed the selection pre race at 1.5219 for £1,000 = Profit of £521.90
~ You have laid the selection inplay at 1.70 for £1,000 = Loss of £700
~ £700 - £521.90 = £187.10

I assume you greened up so laid slightly more than £1,000 to give you your loss of £180.

it seems to confirm that the bet was just voided during the in-play period.

Again I don't see why you think a bet has been voided?

[mcfc1981]

thanks for the replys.
they add your stake and profit (£1000+£710)
then minus it 11%

[ba1000]

Hmmm more and more people seem to be getting caught out by this "EVENT WHICH IS APPARENTLY RARE"! I posted this problem with Betfair several months ago. I have stopped trading because of this "problem".

If it happens to you this event is not rare!

[andyfuller]

The event is pretty rare to be honest, it is only when a Withdrawal happens late on and there is not time for BF to remove the horse from the market before the race starts. This must happen in a very small percentage of races.

Furthermore people are only caught when they are not aware that a withdrawal has taken place or if they do not understand the withdrawal/reduction factor process.

As long as you know a Withdrawal has happened but Betfair have not removed the runner you should be able to work out exactly what your position is.

MCFC1981 - remember that is only how they treat the Reduction factor in the Win market, it is different in the place market.