12th April 2012, 03:34 PM
|
|
Member
|
|
Join Date: Jan 1970
Posts: 4,367
|
|
Quote:
|
Originally Posted by Raven
A bit of scare mongering going on here. Those of you that do high volume / low margin trading/laying or whatever, for sure the goal posts have been dismantled. But I'm not sure Betfair will be sorry to see the back of them. But for old-fashioned pure speculators that back their opinion & lay / backand earn a higher margin, say 20% after comm, this will decrease their profit, but a good profit will still be made.
I'd much prefer a 1.5% fee plus 5% comm on each winning wager and do away with this PC nonsense altogether.
|
Raven of course it is going to impact various types differently.
Worst will be traders and high volume low margin backers or layers.
But, 1.5% does not sound much under your scenario, but if every winning bet has an additional 1.5% commission regardless of your end profit, it's still a massive hit.
For example the difference in profit between 4% commission and 5% commission is enormous even with larger margins when calculated not on your profit, but each winning bet.
This isn't going to impact the Saturday recreational punter too much who picks out a few good things, but the more you use the exchange the worse it will be.
I guess my reaction could be seen as a bit over the top to position takers, but people like myself and Mark (and a few others) who derive almost full income from the exchange, it's a severe blow. |