Pompano Posted September 1, 2009 Share Posted September 1, 2009 Hi, I have a question about how much money is needed to perform a trade on the same exchange vs two different exchanges. Say I want to back a runner $100 @ 2 on exchange A and lay same runner on exchange B @ 1.50 and green up. That would take $100 for the back bet and $66.67 for the lay liability totaling $166.67 for a total stake. If I make the same trade on the same exchange I wouldn't need the $66.67 ready in the account to make the second bet? I could start that trade off with just $100 in the account? I tried with a small amount to first place an (unmatched bet) @ 1000 for my entire account total. I could then try to lay @ 1,01 for that same amount even tho my account total was $0,00. So this seems to be the case. I guess the system accepts that because it "knows" the bets at least partially cancel each other out. But would that also work even if I had to trade out for a loss? Say I back my account total @ 2 (bringing the wallet down to $0) can I still then trade out for a loss by laying say at 2,2? Don't worry, I'm not gonna trade for my net worth :) I just want to know if I have $100 in the account I can start a trade by backing for that $100 instead of dividing it up into a back bet stake and a lay bet stake. This might be a trading 101 type of question but I hope someone wants to help me with this. TIA, P. Quote Link to comment Share on other sites More sharing options...
froment Posted September 2, 2009 Share Posted September 2, 2009 Re: Account total and trading on exchange Say I want to back a runner $100 @ 2 on exchange A and lay same runner on exchange B @ 1.50 and green up. That would take $100 for the back bet and $66.67 for the lay liability totaling $166.67 for a total stake. If I make the same trade on the same exchange I wouldn't need the $66.67 ready in the account to make the second bet? I could start that trade off with just $100 in the account? I tried with a small amount to first place an (unmatched bet) @ 1000 for my entire account total. I could then try to lay @ 1,01 for that same amount even tho my account total was $0,00. So this seems to be the case. I guess the system accepts that because it "knows" the bets at least partially cancel each other out. You're right; not only "at least", but "system" knows exactly how much of one bet is covered with another; if bets not only cover each other's stake, but have profit more than that, you have the case of green-up. But would that also work even if I had to trade out for a loss? Say I back my account total @ 2 (bringing the wallet down to $0) can I still then trade out for a loss by laying say at 2,2? No. If you trade out for a loss, you must have in your account sufficient funds to cover that loss; in this case, you don't say which odds you back those 2 units at, but let's suppose it's at evens; if you then lay at 2.2, you trade for a loss (red-up) of -0.18; so, you'd need at least 0.18 units at your account for such a trade. Don't worry, I'm not gonna trade for my net worth :) I just want to know if I have $100 in the account I can start a trade by backing for that $100 instead of dividing it up into a back bet stake and a lay bet stake. As said above, you can do that, but it's not clever thing at all, to go with entire bank in; in fact, in my opinion, 5% to 10% of the bank is optimum for a bet, and I have never went with more than 20% of bank in one bet; exceptions are some cases when I decide to start with, let's say 10 EUR and try to go as far as I can, like some Glory Hunters here; if that's case with your bank, then I understand why you go all-in, but even in that case, leave 10 or 20 units, to be able to red-up if things don't go way you expect. Quote Link to comment Share on other sites More sharing options...
Pompano Posted September 2, 2009 Author Share Posted September 2, 2009 Re: Account total and trading on exchange Thanks for your reply. As said above' date=' you can do that, but it's not clever thing at all, to go with entire bank in; in fact, in my opinion, 5% to 10% of the bank is optimum for a bet[/quote'] When I'm talking about my account total it's not my bankroll. I'm primarily a online poker player and keep my online money spread over a couple of e-wallets and a handfull of poker sites. What I mean is if I have $100 on Betfair and want to make a trade for $100 I would have to transfer more money to be sure to cover the possibility for a trade out loss. Quote Link to comment Share on other sites More sharing options...
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