27th December 2006, 11:22 AM
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Member
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Join Date: Aug 2005
Posts: 45
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High-Low
Now that is the absolute crux of the matter, how do they actually derive at their price, is it the average, the mean, the most backed or layed, or is a price they arbitrarily pick that yields impressive results for them.
How do we know that this is not just marketing hype and that they are not presenting the best possible light on their prices, we REALLY don't know because their price selection methodology is not transparent in this respect.
You could sit there and compare and do the math to 'Keep 'em honest' but that is more trouble than its worth. It would help if they actually spelt out how they derive their price. We know there is a high, low and mean average and we also know that more money is traded at certain price points, which is more important than the high and low figure in my mind.
Then it would also be smart to see which way the trend was forming i.e. the price being supported on the way out (Blowing) or on the way in (Firming). There is a lot more we need to know about the price that Betfair place alongside their name and claim is better than the other Totes.
A final analysis benefit would be to convert all commissions to either the same amount or delete them completely so that each entity had a baseline starting position, then and only then would comparing a betting exchange price to a Pari-mutuel pool make any sense whatsoever.
Yawn, of course you have an obligation to your shareholders (in this case owners) to present your product in the best light possible, that is called advertising, and anyone who believes in a companies self advertising is simply not too bright.
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