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In futures markets you need a minimum amount of money to bet.
Dax: around 12000-13000 euros per contract plus about 30% reserves for potential trend movements against your bet. EuroStoxx50: around 3000 euros per contract plus ... In LMAX you can play with much smaller quantities ... and therefore attract small fishes. If any small fish wins: 60% commission. And the small fish will learn that a round trip per contract in the EuroStox can be as low as 7 euros regardless of the win per contract and will leave the 60% LMAX site. |
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Bayes.
Date Joined: 13 Sep 05 Add contact | Send message When: 03 Jul 11 21:32 Joined: Date Joined: 13 Sep 05 | Topic/replies: 485 | Blogger: Bayes.'s blog Almost ridiculously, they phoned me up a couple of weeks ago to try to get me to market make on their failing LMAX site. Barefaced cheek really. That's right, they need to you to provide liquidity. But if your successful you'll be told you pay less in commission than it costs them to service you. |
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Bayes.
03 Jul 11 21:21 This kind of discussion is, of course, exactly what Betfair want, because it deflects attention from the real issue. Let's face it, their revenues are already 250 million. They built a 750 million pound business without having to fleece the winners. For a company that has previously been risk averse (they stopped laying the high rollers) they are taking a big punt that they have called this one right. I totally agree. Betfair has continued to grow both revenues and earnings from the exchange every year, but sadly their expenses has grown in roughly the same tempo. That is however imo mostly due to their affection for exchange games and all other non exchange stuff. |
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How about Mr Rangagajec buying WBX and launching them in Australia?
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