Be informed trader
One of the biggest bookmakers / traders mistakes, it is ignorance of the rules. Many people is lazy to read and they just begin to play immediately. The rules are
different in every betting company and if you want to be successfull trader-you need to know it. I have made you a short summary of the most important rules in Betfair Exchange.
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Brokerage fee and Points
What is Betfair commissions and how they are calculated?
Every time you bet in Betfair market, system deducts brokery fee from your money prize. In most cases, this tax is 5%.
The best would probably be to set an example: The match Manchester United - Liverpool. Odds for Manchester win is 2.0
You bet 300 €, MAN UTD also win this game, so you win 300 € from this bet. What is your profit?
€300 * 5% = €15 (commission) €300 – €15 = €285 (your winning)
This is the simplest calculation. However, it is possible to pay a lower fee. Active exchange participants can receive up to 60% discount. What kind of discount you can get depends on the collected Betfair Points.
Points are earned by making bets. For every € 0,10 paid (payable) tax you get 1 point. Whether you have won or not, you still receive points as they are given and for paid and payable (5% of your Losees the amount you have won something) charges.
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The following table shows how the discount received for the collected points.
In order to maintain the activity of players, Betfair deducts 15 % of your
accumulated points of your balamce every Sunday midnight (GMT). This is known as the Weekly Decay. If you suddenly make a lot of points, you do not need to wait for Sunday, the discount goes up automatically.
So if in the example above (without Betfair discounts) your profit was € 285. Let‘s calculate what it would be with a 40% discount on Betfair. Calculation:
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€ 300 - your winnings
5% - Betfair brokerage fee
40% - your discount
€300 * (5% * (1-40%) = €9 (commission)
€300 – €9 = €291 (your winning)
You earn approximately 90 Betfair Points.
If you are selling, make back and lay bets on the same market, commissions are calculated only on the overall profit, rather than on each bet separately.
In this example, I I pay commissions only from € 34 (if somewhere team wins) or € 33,20 (if a tie).
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Premium Charges – Fees for Sharks
Betfair market fee for successful traders
Betfair has introduced a new rule - a premium charges, at 2008. This additional fee for traffickers / gambler who profit greatly exceeds the paid commissions. Although a large proportion of customers rushed to express their dissatisfaction,
nevertheless, this tax has affected a small number of customers. Betfair estimates only 0.5% of stock exchange participants are charged. However, whether this is a real number or not, there is nothing can to say. It is clear only, that there are a big number of dealers, earning big money from Betfair Exchange.
Who pays this tax, how it's calculated and how to apply?
Who pays the Premium Charges?
Betfair counts customers profits and all taxes paid, every week. The fees paid by customers who fulfill the following conditions:
- Your account is in profit zone (during the time between the opening of the account you are in profit).
- If you pay all brokerage fees at less than 20% of your profit. In short, if your profits are 5 or more times higher than the fees paid, you can be taxed.
- Carry out a bet of at least 250 different events.
The majority of Betfair customers do not meet the one, or other criterion. You can be a successful trader, but still not to pay this tax, for example, if your commission is very high and well above the 20% of the net profit.
To protect new customers Betfair has introduced 2 additional rules:
- If one simple bet amount won is more than 50% of the total net profit, this achievement excluded.
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- Each customer will be charged exempt from tax up to £ 1000. This means that if you already have to pay a premium charges, you will not have to pay from the first £ 1000.
So, those who dispose of small amounts, will be calm. All together, the appearance of a very small proportion of customers that meet all the requirements.
As calculated Premium Charges?
Each week the customers who meet all the requirements will be charged of a lower amount of the following options:
- The difference between 20% of the profits and the taxes paid in the previous week; - The difference between 20% of the net profits and taxes paid during full period; Here are some examples of how this tax is calculated.
Example 1: Let's say over the entire lifetime of your account you won € 10 000, and € 1000 taxes are paid. You have participated in more than 250 events and used the £ 1,000 tax-free amount.
Last week, you have won € 500 and paid € 80 tax. Calculation : ((€500 * 20%) – €80 = €20
20% of the net profit - to pay taxes = premium charge fee In this case, you pay 20 € fee.
Example 2: During the lifetime of your account you won € 10 000, and € 1000 taxes are paid. You participated in more than 250 events, but you still haven‘t used your tax-free amount. Last week, you have won € 400 and paid € 50 tax.
Calculation :
((€400 * 20%) – €50 = €30
Your fee is € 30 but as yet do not use your £ 1,000 tax-free amount you will not pay the tax. You will remain £ 970 tax-free amount and the balance will be able to re- use, if you continue to successfully sale and will have to pay a premium charges. Increased Premium Charges
2011 Jun Betfair has introduced higher taxes on very high-earning customers. The increased premium charges paid by consumers, who fulfill the following conditions: - Your account profit higher than £ 250 000.
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- Pay fees are less than 40% of net profit. - Place bets on more than 1,000 events.
Increase taxes, depending on the net income and tax paid on the proportion may be paid from 40% to 60%.
< 5% - 60%
5% – 10% - 50%
10%+ - 40%
Although, according to the Betfair data, raised fee will pay only 0.1% of customers. Improvements to the new rules were even more frustration.
Why Betfair imposed Premium Charges rule?
Many reading probably had an idea why Betfair is doing this? The company faces very little competition, which is hardly possible for niche specifics. For many years, Betfair has been called the company where winners are welcome. It really was Betfair pride. Why should spoil such a good reputation?
Basically, this rule affects only a very small number of customers. Those who pay a premium tax charges are well-paid from betting market. These people are profiting every day and fill up their bank accounts.
Premium charges rule was invented precisely in order to charge such successful traders. They are not useful to the market, because they removes all the money from it.
The less money circulates in the stock exchange, the fewer transactions executed and the less paid commissions. Thus, the medium-sized merchants, this rule does not affect, but only a little "precipitates" market sharks.
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Tennis Betting Rules
What you need to know betting tennis in Betfair betting market?
Betfair offers bets on all ATP and WTA tournaments. This sport is a favorite on Betfair traders, and activity in it is often very high. Later we will talk about the popular Betfair tennis market strategies, but first we need to become familiar with the rules. If you will don‘t know it, you can hurt.
The most common disputes over construction is completed when one of the players retires without finishing the game. According to the Betfair Rules, if a player withdraws after the first set, all bets (Back / Lay) on the victory (Match Odds) is canceled and the money returned. If the first set occurs and one of the participants retire, those wins that went beyond the official competition winner.
If you bet on the other ends, such as: who will win the first set, number of games, is not always necessary to wait for the end of the game to find out whether you win or not. For example, bet more than 19.5 games. Match result is 7-6, 4-3, and now it‘s 20th game so you calm. If in such a case, one of the players retire from the match, you'll still be a winner. Who betted on under –they lost. If the bet outcome is already clear, such bets will classified as winned.
What happens if you bet more than 21.5 game per match, for example. Match score is 6-4, 4-4 and one of the players retires, your bet is returned.
In most cases all bets : Who will win the tennis tournament remains is valid (back and lay) even if your player retires from the tournament's and even haven‘t played one single match. Pay attention to the information note of the event Lounge: *** ALL BETS STAND RUN OR NOT ***
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