At the trader's conference they had a panel of professional sports traders. I was going to ask a question, but they ran out of time. (It's also partly related to the first question that was asked about zero-sum games). Anyway, I thought I'd ask it here instead.
So given that sports trading is a zero-sum game (for every winner, there must be an equivalent loser - in a similar way to financial derivatives in my opinion), do you feel that being a professional sports trader has any social utility? If it does, then what is it? If you don't think it does, then does it bother you that your job provides no social utility? (Of course it provides YOU and your family with utility, as it makes you money, but that might not be useful to society as a whole).
My thoughts:
Financial derivative traders have the purpose of transferring risk. Some investors may want a different risk profile, and would be prepared to pay a premium for it, which is what the traders effectively get paid with. (This is similar to insurance premiums).
The truth can't be said for sports trading though, unless there are millions of those punters who will bet AGAINST their supporting team so that they get emotionally consolidated with a winning bet if their team loses.
The only utility I can think of is that sports traders help to facilitate bets, which for the common punter is for entertainment. Therefore, we are generating a potential entertainment value for the public, for which we are remunerated by making our profits. (As a whole, we're effectively a casino or bookmaker).
Sometimes I think I'd like a job which contributes more to society, but then I wonder if I'm just being idealistic. Then I also remember that I still have a mortgage to pay! And then just crack on.
Question for the professionals (or aspiring ones)
I've been asked this question a lot.
Before trading, punters were losing enormous sums to bookmakers and the overround was huge. In the trading era the overround is tiny and much less is lost to the other side of the book. So I'd like to think we have all played a role in joe punter losing much less than he would have if he ended up with an old style bookie.
Before trading, punters were losing enormous sums to bookmakers and the overround was huge. In the trading era the overround is tiny and much less is lost to the other side of the book. So I'd like to think we have all played a role in joe punter losing much less than he would have if he ended up with an old style bookie.
So I guess you're saying we're still a bookmaker or casino. We just charge less for the entertainment.
I suppose there does come a point where the entertainment that the punters receive is worth that lost margin to them.
It was interesting to see at the conference that there were three pros sitting up there though, with the one on the right who was admitting that he sometimes felt uneasy and then the guy on the left who didn't seem to give it a second thought. I loved how Scott described them as the socialist and the capitalist, with the guy in the middle somewhere in between!
I suppose there does come a point where the entertainment that the punters receive is worth that lost margin to them.
It was interesting to see at the conference that there were three pros sitting up there though, with the one on the right who was admitting that he sometimes felt uneasy and then the guy on the left who didn't seem to give it a second thought. I loved how Scott described them as the socialist and the capitalist, with the guy in the middle somewhere in between!
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Or have allowed them to lose the same (or more/less) but at a slower rate.Euler wrote:So I'd like to think we have all played a role in joe punter losing much less than he would have if he ended up with an old style bookie.
In theory, but we're talking about hardened puntersEuler wrote: Before trading, punters were losing enormous sums to bookmakers and the overround was huge. In the trading era the overround is tiny and much less is lost to the other side of the book. So I'd like to think we have all played a role in joe punter losing much less than he would have if he ended up with an old style bookie.
I bet some have tried to conquer trading, but their betting instincts have led them to leaving bad trades to run or go 'in play'. The result being they lost shedloads, when if they'd bet with a bookie it would just been £20 for a days range of bets
I see traders as offering a service to betors and traders, we offer money and it's up to them if they take it.
I see this as doing your own business and it's no different to say opening your own fish and chip shop across the road from another shop, if you put them out of business would you care? would you hell you would break out the bubbly, all animals on this planet compete to get what they want and humans want money.
If it bothers anyone that trades give some money away to someone that needs it or if you have alot of extra time do something helpful for someone else.
I see this as doing your own business and it's no different to say opening your own fish and chip shop across the road from another shop, if you put them out of business would you care? would you hell you would break out the bubbly, all animals on this planet compete to get what they want and humans want money.
If it bothers anyone that trades give some money away to someone that needs it or if you have alot of extra time do something helpful for someone else.
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marksmeets302
- Posts: 527
- Joined: Thu Dec 10, 2009 4:37 pm
There is utility, otherwise the idea of being a professional sports trader wouldn't exist.
Often this through spin offs; I think high frequency trading has advanced the technology behind switches, routers and other network related stuff tremendously. That won't hold up for sports betting, but there's a huge industry behind it. I'm sure it would be quite different if there were no consistent winners. Stories of people consistently winning is what motivates people to put another bet on. At the very least a successful sports trader is unknowingly responsible for a lot of jobs!
As for the people taking the other side of the bet; I think it mainly provides entertainment to them. Which is very much okay as well.
Often this through spin offs; I think high frequency trading has advanced the technology behind switches, routers and other network related stuff tremendously. That won't hold up for sports betting, but there's a huge industry behind it. I'm sure it would be quite different if there were no consistent winners. Stories of people consistently winning is what motivates people to put another bet on. At the very least a successful sports trader is unknowingly responsible for a lot of jobs!
As for the people taking the other side of the bet; I think it mainly provides entertainment to them. Which is very much okay as well.