Betting Exchange Deduction Factors

Traditional bookmakers generally apply reduction factors in accordance with Tattersalls Rule 4c when a non runner is declared.

Betting exchanges however work slightly differently.

As exchanges do not conform to traditional pricing odds bands, and also because price at time at withdrawal is a little hard to determine ( eg is the price at withdrawal the £2 at max odds or the £1000 a notch or two down?) the exchanges use their own calculation to determine the reduction factor to be applied to previously matched exchange bets.

Generally clicking on each horse will bring up details including what deduction factor will be applied to previously matched bets on other horses in the event of it being withdrawn.

One important point to note is the difference between how betfair applies it reductions compared to rule 4.

Rule 4 is normally applied as a percentage deduction from winnings.

Betfair however applies it as a percentage deduction from total return when looking at win markets.

eg if you have made a bet at digital odds of £100 at 11 (ie traditional 10/1) and a non runner with a deduction factor of 10% is declared, the net digital odds payout will be 11 * 0.9 = 9.9

ie you get returned including your stake £990

The key difference here between Rule 4 c is that the deduction is applied not to odds but to return.

 

 

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