Each way arbitrage

The sport of kings.
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rik
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Location: London

I was thinking since bookmakers offer the same line on win and each way market there is opportunity for arbitrage as on betfair line can differ significantly.
So I was testing on a race, going by market rules payout should be 1/5 first 3 runners both for betfair and bookmaker.
Horse odds 12 on bookmaker placed, so win bet lost -1 whereas place bet 11*0.2+1 payed out 3.20 for profit of 1.20 seems correct.
However Betfair lay bet £2 odds 11 lost -3. Shouldnt it be -1 as half the bet wins £1 and other half loses £2 as paying out place odds of 3?
Is there a difference in how betfair calculates the each way market compared to bookmakers? If someone could explain how the -3 here is calculated please dont have experience with each way thanks.
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ShaunWhite
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Are you sure you're not comparing the bookies EW prices with the Betfair Place prices? Place prices obv don't have half your stake riding on the win.
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rik
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yes im sure, why does the £2 eachway lay bet odds 11 that placed but didnt win result in a loss of 3 instead of 1 is basically my question, what is the calculation for that, thanks.
TraderFred
Posts: 117
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I’ve never understood the each way markets on betfair.

When you say odds of 11, does that mean 11-1 bookmakers, 12 betfair ?

Also, you say you did £1 e/w with the bookies, and £2 e/w on betfair. Nothing to do with that is it ?
TraderFred
Posts: 117
Joined: Wed Sep 26, 2018 7:55 am

Sorry, just seen your screenshot. Odds of 11 on bf.

I dont understand that at all to be honest. I’d have thought you should be -1 too. +1 for the lay of the win bet, -2 for the lay of the place bit.

I don’t get those each way markets though, not sure how they work.
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rik
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Joined: Sat Jan 25, 2014 5:16 am
Location: London

TraderFred wrote:
Mon Jul 13, 2020 3:21 pm
I’ve never understood the each way markets on betfair.

When you say odds of 11, does that mean 11-1 bookmakers, 12 betfair ?

Also, you say you did £1 e/w with the bookies, and £2 e/w on betfair. Nothing to do with that is it ?
yes placed £1 eachway at bookmaker which means £2 total stake, £1 on win and £1 on place at 1/5 odds, decimal odds 12. (returned 3.20 so win of 1.20 as expected)
so lay bet of 2 on betfair eachway should have offset that but didnt
TraderFred
Posts: 117
Joined: Wed Sep 26, 2018 7:55 am

I just noticed that when putting a bet in on betfair each way. £2 is the minimum stake. And if lose you lose £4.

So a £2 stake on betfair beach way markets is actually £4 ( 2 ew) and not £1 ew.

Is it something to do with that perhaps ? Though in that case you should be -2 and not -3 so still don’t get why it’s -3.
TraderFred
Posts: 117
Joined: Wed Sep 26, 2018 7:55 am

It looks as if you have been settled as £2 ew 10/1 1/4 odds.

Though 1/5 th odds 123 looks right for 11 runner hcap, unless there were a lot of non runners? It says on the market rules that place terms stay the same even with non runners, though RP only gives 1 non runner for that race, so I’m out of ideas.
TraderFred
Posts: 117
Joined: Wed Sep 26, 2018 7:55 am

I think that’s it actually. It was originally scheduled to be a 12 runner race, so 1/4 the 3 place terms.

It then got reduced to 11. So your bookie paid 11/1 at 1/5 the odds a place.

Betfair each way don’t change terms for non runner. So you laid 10/1 at 1/4 the odds.

And 2 ew at 10/1 1/4 odds would leave you -3.
asahenettleton
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Is there a way to learn the number of non-runners from Bet Angel?
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