General Betting
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If I think i am likely to incur a pc i.e. I am well up in the week, if I increase all my I stakes by 25% and I go on to incur a pc, my profit/loss from that point forward will be excactly the same as if their was no commision or pc(If I incur a pc)
e.g. If I place a bet of £100 at evens, without pc or commision I either win or lose £100. If I am confident I will incur a pc then I stake £125 instead of £100. If I win my gross profit is £125. the commision plus the pc is 20%. 20% of £125 is £25 therefore my net profit is £100.
If my bet loses this reduces my gross profit by £125 and therefore reduces my pc by 20% of £125 = £25 so my net loss is £100
e.g. If I place a bet of £100 at evens, without pc or commision I either win or lose £100. If I am confident I will incur a pc then I stake £125 instead of £100. If I win my gross profit is £125. the commision plus the pc is 20%. 20% of £125 is £25 therefore my net profit is £100.
If my bet loses this reduces my gross profit by £125 and therefore reduces my pc by 20% of £125 = £25 so my net loss is £100
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the commision plus the pc is 20%
This is incorrect due to the fact that betfair look at 'commission generated' rather than commission paid.
Let's say you are on 3% commission. You win £10k and lose £8.5k. Despite the fact that you have paid exactly 20% of your GP in commission (£300 of £1500 profit), you're commission generated is only 18.5%, so an additional PC payment is required.
This is incorrect due to the fact that betfair look at 'commission generated' rather than commission paid.
Let's say you are on 3% commission. You win £10k and lose £8.5k. Despite the fact that you have paid exactly 20% of your GP in commission (£300 of £1500 profit), you're commission generated is only 18.5%, so an additional PC payment is required.
The invester why is the commision paid different to the commision generated?
bf will tell you it's because it just wouldn't be fair otherwise, because otherwise you are not giving the losers (who never have to worry about pc) credit for all that commission they took part in "earning"). and as it so happens, yes it does make them more money :D
aston, you are on the right lines that once you are firmly into pc paying territory, bf basically have a share in all your bets from that point, win or lose
so they have arranged a commission system where they get to take a chunk of anyone's action who is a proven long term winner. pretty much identical to bookies who work out who the winning punters are and then follow those punters bets in for as much as they can
[but bf don't have to worry about getting on at the same price as the shrewdie, or scrabbling about finding someone to get the bet on with]
aston, you are on the right lines that once you are firmly into pc paying territory, bf basically have a share in all your bets from that point, win or lose
so they have arranged a commission system where they get to take a chunk of anyone's action who is a proven long term winner. pretty much identical to bookies who work out who the winning punters are and then follow those punters bets in for as much as they can
[but bf don't have to worry about getting on at the same price as the shrewdie, or scrabbling about finding someone to get the bet on with]
...and if the shrewdie goes on a terrible run and loses so much that they aren't a pc payer, bf automatically get let off following the bets in from that point
Is it not:
Commission generated = (Commission + Implied Commission) where Implied commission is market losses x 3%.
So therfore commission = £300 (3% of the winnings) + £255 (3% Implied Commission) = £555.
So if you won £1500 you paid over 30% already and avoid PC charge.
Commission generated = (Commission + Implied Commission) where Implied commission is market losses x 3%.
So therfore commission = £300 (3% of the winnings) + £255 (3% Implied Commission) = £555.
So if you won £1500 you paid over 30% already and avoid PC charge.
ActiveX it's (commission paid + implied commission)/2
Well I thought I had this worked out but now im confused.com. All I know is I lost money today :( so I have reduced my pc for next week :)
One of the difficulties with this is that you need to keep up to speed with the changes Betfair introduce.
So if you check the service page you will see the implied commission part of the equation has now changed from what you just wrote to what I wrote.
So if you check the service page you will see the implied commission part of the equation has now changed from what you just wrote to what I wrote.
Activex,
The calculation is as written by only223.
It has been divisible by 2 since its inception in October 2008.
In Oct 2009 they introduced the standard 3% across all markets for implied comm%. It has not changed since then.
You may be getting confused by the data/transaction calculations.
The calculation is as written by only223.
It has been divisible by 2 since its inception in October 2008.
In Oct 2009 they introduced the standard 3% across all markets for implied comm%. It has not changed since then.
You may be getting confused by the data/transaction calculations.
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