27.05.11 - Newcastle

[superfrank]

I'm having a decent day today - 'only trading late after most of the silliness has played out.

Is there any chance Betfair might get rid of XM?

[freddy]

I would doubt it personaly,

im sure it's making them a fortune

[superfrank]

im sure it's making them a fortune

how might they be making more money when we are getting less matched?

[stevequal]

XM is pretty annoying.

Taken my most profitable days trade. Much needed after a really demoralising day yesterday.

Hope everyone else did ok. Off for a deserved friday beer.

[freddy]

im sure it's making them a fortune

how might they be making more money when we are getting less matched?

becuase the money is getting matched in a different way and in a way that benefits Betfair, not sure if less is getting matched in total necessarily ?.

When they introduced XM in 2008 the Gambling Commission looked into it and found they had made approx £300,000 out of it in just over a month,
And bear in mind this was way before they were doing it on the horse racing markets so im sure now there doing very well indead out of it.

[Iron]

Not sure I follow...

Is your thinking that XM benefits Betfair because it benefits backers rather than traders, and Betfair make more money from them?

Jeff

becuase the money is getting matched in a different way and in a way that benefits Betfair, not sure if less is getting matched in total necessarily ?.

When they introduced XM in 2008 the Gambling Commission looked into it and found they had made approx £300,000 out of it in just over a month,
And this was way before they were doing it on horse racing markets so im sure there doing very well indead out of it.

[Iron]

Do you guys find that sometimes you profit from XM, if it creates a spike that goes in your favour, or if you can trade the retracement following a spike?

Jeff

XM is pretty annoying.

[freddy]

Not sure I follow...

Is your thinking that XM benefits Betfair because it benefits backers rather than traders, and Betfair make more money from them?

Jeff

becuase the money is getting matched in a different way and in a way that benefits Betfair, not sure if less is getting matched in total necessarily ?.

When they introduced XM in 2008 the Gambling Commission looked into it and found they had made approx £300,000 out of it in just over a month,
And this was way before they were doing it on horse racing markets so im sure there doing very well indead out of it.

It Benifits Betfair because they get to skim some pennies when they match customers bets at certain odds with XM.
These pennies soon add up to 100,000's in a very short time.

This imo this was the real reason they introduced xm and clearly not just to help there customers get bet matched more easily like they said .

[Iron]

If that was Betfair's thinking, then I have to hand it to them - it borders on genius!

Jeff

It Benifits Betfair because they get to skim some pennies when they match customers bets at certain odds with XM.
These pennies soon add up to 100,000's in a very short time.

This imo this was the real reason they introduced xm and clearly not just to help there customers get bet matched more easily like they said .

[superfrank]

It Benifits Betfair because they get to skim some pennies when they match customers bets at certain odds with XM.
These pennies soon add up to 100,000's in a very short time.

This imo this was the real reason they introduced xm and clearly not just to help there customers get bet matched more easily like they said .

Are you saying they get money out of the market with a XM account rather than just pocketing the commission?

[freddy]

Yeah they had to admit it when the gambling commision started looking into it way back in 2008, just after they first started XM.
At that time they had skimmed approx 300k from the markets in just over a month, if i remember correctly.

The gambling commision concluded they were not doing anything wrong as they were effectively just a bookies and free to get involved with markets as they please.

[freddy]

http://www.gamblingcommission.gov.uk/gh ... r_and.aspx

[Iron]

...and the OFT take an equally permissive attitude towards Betfair!

The only surprising thing about XM is that it took them as long as they did to introduce it on horseracing, given that they can act with impunity!

Jeff

The gambling commision concluded they were not doing anything wrong as they were effectively just a bookies and free to get involved with markets as they please.