JC / Railbird

Price Steaming

Dark Pools

Michael Cox reports on “price steaming” in unregulated exchanges:

[It] might sound like a lot of money to bet on horses that you don’t want to actually win, but if the liquidity was high enough on CITIbet, it could easily be a lucrative strategy. Because CITIbet pay-outs are based on the home totalisator dividend, a bet on the exchange of $20,000 — depending on some other factors, including the liquidity available — could have returned around $128,000 to the instigators of the sting for a total spend of around $60,000 — still a tidy profit of more than 100 percent and at much better odds than the 1-to-5 initially showing before the price steaming took place. Still, in this instance, the strategy backfired to a degree as the large investments triggered robotic wagering programs that also took a slice of the inflated odds, and as a result, the payout was much less …

Posted in Racing on February 11, 2015 / Tagged Betting Exchanges, Dark Pools, International, Price Steaming, Southeast Asia, TRPB, Wagering