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Monday, 26 September 2011

Liquidity in the balance




As Betfair out-grows itself and continues to basically piss off just about everyone who wants to use it as it was originally intended (as per You Bet - The Betfair Story), the ascendancy of Betdaq's star is finding some momentum. Encouragingly, I have read many stories lately, the vast majority since Betfair introduced the Premium Charge, about how liquidity on Betdaq, Betfair's biggest rival, is greatly increased and increasing further. Right now, simply because that's where so much money is traded, the horse racing markets on Betdaq are seeing the benefit of traders crossing over from Betfair. There is still a long way to go before the football markets catch up but there is more liquidity in these markets now than has been before. Whilst we may not be able to transfer all our trading yet, nor should we want to in the long term, the fact there is so much more money entering these markets means, when Betfair' software falls over, as it did, yet again, last Saturday, we can trade out safely on Betdaq. 
For those who do not know, Betfair has a standard 5% commission on all transactions. That being, the profiting side of a transaction would have 5% of the profit deducted by Betfair. Fair enough. But, not that long ago, some really big hitters were then asked to pay 20%. Now, Betfair has decided that too many people were making too much money, so they recently introduced a Premium Charge - For those users who have achieved an overall profit on their account of £250k or more, regardless of the time frame, they would now be charged between 40% & 60% for each of their profiting transactions, more than you would pay to Her Majesty's Government. 
This is likely a pyrrhic victory for Betfair, with a battle won against those that scare off the small punters that Betfair fervently look to attract, while forcing the real profit generators to seek alternatives and therefore strengthen the competition. My allegiance lies with liquidity and minimum commission, wherever that might be.

http://www.facebook.com/pages/Betfair-Premium-Charge-Fiasco/232172673473703

And, speaking of liquidity - The two picks from Saturday were both 100% trades, Sheffield Wednesday went 2-0 up in the first half and got a third early in the second half to ensure the win. Charlton also went 2-0 up in the first half but, as Betfair was on the blink again, there was no money around to trade out when Chesterfield made the game 2-1, thankfully Charlton got another at the death to seal it. Those I considered taking in-play were left alone. Nothing for yesterday, which was a welcome day off.

Today's pick is Atvidaberg v Falkenberg in the Swedish Superettan. Needs to be more money pre 6pm though.

Whatever you trade, stay green. 

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