30th September 2008, 04:03 PM
|
|
Member
|
|
Join Date: Jan 1970
Location: Sydney
Posts: 402
|
|
Quote:
|
Originally Posted by Crackone
Quote from the link you posted in your first Post
"The Premium Charge will only apply to customers who pay us less in commission than it costs for us to service them. The reason they do is because a) many of them use the Betfair infrastructure extensively, or b) they drain liquidity from the exchange by withdrawing their winnings faster than new funds are added back by other existing or new Betfair customers, or c) both of the above. Overall, these customers are a cost to Betfair, which means ultimately that they are a cost to the entirety of our customer base."
Trader A and B cost the same, 100 bets each. Trader A pays $600 commission betfair happy. Trader B uses same amount of resources pays only $100 commission.
|
Firstly, that is not the full story from Betfair. Dig further and you'll find more.
Secondly, Betfair's claim here can easily be challenged.
I provide considerable liquidity and commission to Betfair.
My infrastructure consumption per market would be much lower than that of many losers. Particularly since I could not indulge in in-running markets.
And until now I rarely withdrew any funds.
So according to Betfair, the Premium Charge should not apply to me.
But it does in spades.
So how can Betfair's claim be correct?
|