Source of money matched: trading vs. punting

[nomadic]

In an average horse race, what % of the money matched would you say is coming from punters rather than traders? And what is the net amount actually being wagered on the outcome of the race?

For example, if £1 million is showing as the "total matched" on a race, certainly a large percentage of those "bets" are essentially settled before the off by traders who have exited with either a "greened up" position or a net red position. How much would you estimate that to be? 50%? 75%?

Additionally, some punters are also essentially trader/punters who may make several trades pre-race although they plan on leaving some some net wager on the race at the time it goes off (whereby they will profit more if a certain horse or horses win). So in net, on a race with £1 million matched, how much of that is actually "riding" on the result of the race? My guess is maybe £100k or £200k? Or am I way off?

[JollyGreen]

It's hard to know this because there is not any reliable data. I am sure I remember some data being released about a meeting one afternoon at Salisbury. I think it pointed to about 80% of Betfair clients did just one thing and that was have a bet.

I am sure Peter would have some data on this as it was he who showed it to me many years ago.

[Iron]

Hi Jollygreen

Even if we assume that 80% of Betfair's clients are punters, it may still be that the remaining 20% - the traders - are responsible for the vast majority of the volume.

Jeff

It's hard to know this because there is not any reliable data. I am sure I remember some data being released about a meeting one afternoon at Salisbury. I think it pointed to about 80% of Betfair clients did just one thing and that was have a bet.

I am sure Peter would have some data on this as it was he who showed it to me many years ago.

[nomadic]

Thanks guys for your thoughts on the subject. My guess is also that it probably follows the 80/20 rule whereby 20% of the customers make up 80% of the volume. Perhaps it may even follow a 90/10 rule?

Any other thoughts from anyone else?

[Mug]

This is on Peter's blog

http://www.betangel.com/blog_wp/2009/05 ... are-there/

[Bet Angel]

If you want a serious look at how much is punting vs. trading the answer if often in your 'my bets' tab on Betfair. Have a look at the following image which shows you how one trading position was matched. It makes interesting reading, One order from ne matched with 22 other Betfair users. I offered up this liquidity and waited for it to be filled so the money wouldn't have been there unless I or somebody else offered it to the market. I think Betfair undervalue the risk traders take and the liquidity they provide, but I am bound to be biased. But you can see that on this occasion it was matched with a whole bundle of other users.

100409 - 2000 - Matched bet information - Copy.png