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Originally Posted by Michal
Hi Chrome,
You seam to have some grasp on the subject. What do you mean have not payed full commision? How can you not pay a commision when you win? Or is it that they give you a 3% discount for large volume and then take 20% of your profit ??? I really strugle to understand how someone could not pay commision, and what is the level of commision that is right? I thought it was 5 to 2% ???
Michal
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Michal it gets extremely confusing for everyone actually, including Betfair - even they can't explain it, so how do they expect their members to understand it?
What I mean by full commission is not the commission rate, nor the actual dollars paid at the end, I mean something a bit different.
Punters pay commission on losing winning bets, traders do not.
Yeah it sounds weird but I'll try and explain it as I understand it.
Punter A has 100 bets of $100, turning over $10,000
He makes $2,000 profit.
He does not pay 5% commission on just the $2,000 he won, he pays commission on every individual winning bet along the way.
He might have a lot of winning bets, but still only win $2,000.
So he's paid probably $200 in commission at the very least.
Trader B has 100 trades of $100, turning over $10,000
He makes $2,000 profit
He pays commission on his winning trades only, so probably $100 in commission because almost all his trades are winning trades, but small dribbles of profit every trade (nearly).
The punter has paid "full" commission, the trader will probably pay half commission plus a very fat premium charge now.
I hope I explained it enough, it's hard to put into words, but they have everyone running for cover, and most are not even hunted.