Betfair Reduction Factor

[jackster109]

Hi guys

Is there anybody out there tell me how the reduction factor on Betfair works?

I want to know so I can include any reductions on my spreadsheet.

If there is a reduction of 10% and my commision is 5%, will it be basically the same as a 15% commision reduction or is deducted after the commision is taken?

Thanks

[Win2Win]

Hi guys

Is there anybody out there tell me how the reduction factor on Betfair works?

I'm not sure Betfair know that one either!

[mathare]

If there is a reduction of 10% and my commision is 5%, will it be basically the same as a 15% commision reduction or is deducted after the commision is taken?

Nope, it will be completely different.

The reduction applies to the odds taken and may not be exact. The reduction factor is based (I think) on the amount of money matched on the withdrawn runner. So if the withdrawn runner is near the head of the market there is likely to have been quite a large percentage of the total amount matched on the market gone on this runner so the reduction percentage will be larger than for a longshot. Suppose the reduction is not a nice round number like 10% but is 8.73% instead. You've been matched at 6.4 on a runner before the reduction so after the withdrawal your odds are probably going to be around 5.84, not an exact reduction from your original odds as 8.73% of 6.4 is 0.55872 and Betfair don't work to more than 2 decimal places.

Once you've got your new odds then you can apply your commission factor to any profit made on that market.

Not entirely sure why you're asking what you're asking but I would say that trying to build the reduction factor into the spreadsheet is asking for trouble. If you asked for 6.4 and got 5.84 due to reductions just change the price in your spreadsheet to 5.84 and be done with it. What else are you going to do with the reduction information? It's not something you have any control over so it's not like you can look to minimise it in the future, for example. In which case why record it and not just the new odds?

[jackster109]

cheers Mat

I didn't realise that reduction applied to the odds, I thought it was more like a Rule 4 with the conventional bookie.

If thats the case than I will changed the odds like you suggested.