Smarkets - where did the liquiduty go?

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mm1976
Posts: 3
Joined: Fri Jun 08, 2018 9:38 pm

I'm an avid Smarkets user and believe(d) it will storm past Betfair one day when their markets have sufficient liquidity.

I have been managing to get bets on even obscure football matches (I'm a huge footy fan and this is my area of interest) for the last year or so. However, within the last couple of weeks, something has changed and there is no money available on the football markets!! Well, unless you want to back at 1.0001 or lay at 10,000.

Previously I could always get a bet on at a sensible price. So what has happened? Have the market makers left? To compete with Betfair, the most important thing for Smarkets to have is good liquidity!!!!
Bluesky
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Joined: Mon Sep 19, 2016 9:26 pm

I would imagine its due to most of the major European leagues being on their summer break. Once they start up again in August and Sept I would think you will be able to get your bets back on.
mm1976
Posts: 3
Joined: Fri Jun 08, 2018 9:38 pm

Thanks for the reply Bluesky.

Yes we are out if season now for most of Europe, but there are still around 300 football matches listed on Smarkets for the week ahead.

I've also noticed that on the markets where sensible prices are available, I'm only getting matched for a few pence now, whereas previously it would always be a few quid.
I occasionally branch out into darts and basketball - I see the same seems to have happened here.

Smarkets have been putting (directly or indirectly) money into the markets. This makes perfect sense as it is the only way to compete with Betfair and encourage people to move across. That is why Smarkets has had more success than Betdaq etc. If they are now changing strategy, I think this is a huge mistake! Too soon!
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Dallas
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Location: Working From Home

This thread is worth a read
viewtopic.php?f=2&t=15419&start=110
mm1976
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Joined: Fri Jun 08, 2018 9:38 pm

I also posted this elsewhere... Jason has kindly been in touch to say that I can send him a message to explain what I am on about.
xitian
Posts: 457
Joined: Fri Jul 08, 2011 2:08 pm

I expect one or more of the market makers realised they were losing money (perhaps you were winning?) on these obscure matches and decided to pull out, meaning other market makers needn't be competitive anymore, or they were the only competitive market maker in the first place.

That's the trouble with market makers or artificially introduced liquidity - they'll stop offering liquidity if they lose. For a market to be sustainable it needs a constant source of recreational money. I doubt that Smarkets will have that yet on the smaller markets.
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

Possible the source they leech prices from has gone on holiday or knocked those markets on the head. You'd need to look to see what the situation with the markets is on Betfair, see if the liquidity has gone there too.
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Euler
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Location: Bet Angel HQ

xitian wrote:
Tue Jun 12, 2018 12:29 pm
That's the trouble with market makers or artificially introduced liquidity - they'll stop offering liquidity if they lose. For a market to be sustainable it needs a constant source of recreational money. I doubt that Smarkets will have that yet on the smaller markets.
I think that is what Betfair are reliant on really and why they remain dominant.
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ShaunWhite
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Joined: Sat Sep 03, 2016 3:42 am

Euler wrote:
Tue Jun 12, 2018 3:00 pm
xitian wrote:
Tue Jun 12, 2018 12:29 pm
That's the trouble with market makers or artificially introduced liquidity - they'll stop offering liquidity if they lose. For a market to be sustainable it needs a constant source of recreational money. I doubt that Smarkets will have that yet on the smaller markets.
I think that is what Betfair are reliant on really and why they remain dominant.
That's the power of being a "first mover" and why they don't feel the need to unbutton their kimono ;)
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