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Price Tote) >> Usual Operation >>
[ Overview ] [ Examples ]
The SPT is very versatile and can take many different forms;
there are many different modes of operation, settings and formulae available for
use. The examples quoted below show only one version of the SPT and how it
reacts to some rather extreme betting scenarios. Many other options exist to
give a more immediate and specific response to large bets and other demanding conditions, should that prove to be necessary.
However, it is an objective of the SPT to cater for all punters
and to encourage them all to bet with the system, including punters who make
large bets. It is
believed that the sorts of settings already adopted are more than sufficient to
cope with the demands that may be placed on the system.
The compensating mechanisms available to the SPT dampen the
effect of large bets and so the overall effect of such bets on the final prices
can be quite small. It is important to note that the examples use a price
differential of only 5% between set prices and variable prices. Much larger
price differentials could be used and these would provide much larger
compensating effects.
Example 1 shows
a very extreme situation of
this type; a situation that would virtually never happen in practice. 22 limit bets are made at an early stage and initially they have a
considerable effect on the prices of all runners. But once the initial pool has
doubled (even though it is still well short of its final size), the overall betting
percentages are virtually the same as if those bets had not been made at
all.
Example 2 shows another relatively
extreme situation where 8 larger limit bets are made on a shorter priced runner.
Example 3 shows a
situation where a discount is provided for early variable price
punters. As a result, the early prices are slightly less than those for
Example 2 even though the betting pattern is similar. However, by the time the initial pool has approximately doubled, the
prices have become similar to those in Example 2. That is, the slightly lower
prices compensate for the discount.
To allow comparison between the examples, the figures and
parameters in each of them are the same as for Example 1 unless they are
specifically stated to be otherwise e.g. the initial pool size, the expected
final pool size and the commission rate are the same in each example.
An explanation of
various technical terms (e.g. betting percentages) can be found in the Glossary.
 | Initial Settings (Prior to Set Price Betting) |
|
|
Initial Pool Size: |
$10,000 (variable
price bets only) |
|
Expected Final Pool Size: |
$100,000 (a mixture of variable
price bets and set price bets) |
|
Commission Rate: |
15% |
|
Bet Limit: |
An amount which, if the bet is
successful, would take out about 10% of the current net pool. |
|
Discount for Early Variable Price
Bets: |
- |
|
Pool to Which the Discount
Applies: |
- |
|
Variable Price Betting Percentage
(Opening): |
118% |
|
Set Price Betting Percentage
(Opening): |
125% |
|
|
The set prices are only about 5% lower than
the variable prices (calculated by taking the reciprocal of 118 / 100
and 125 / 100 and subtracting the two). |
|
|
The
average betting percentage for bookmakers at the opening of betting can often be
about 145%. The
prices here are much better (higher) and so there is considerable scope
to lower the set prices further should that prove necessary. |
| Early Set Price Betting Pattern |
|
|
A series of 22 limit bets totalling $1,100
is made on one runner which commits about $8,400 to be paid out on that
runner from the pool of $11,100 and a net pool of about $9,400 (i.e.
commits nearly 90% of the net pool to be paid out if the runner wins).
This takes the dividend from 20.0 (odds of 19.0/1) to 2.0 (odds of 1.0/1
(evens)), a price change so large that it virtually never
happens in practice. That is, this is a test of how the system might
respond to one particular very extreme
case. After the 22 limit bets; |
|
Other runners: |
All drift by 11% (variable price) |
|
Set Price Betting Percentage: |
181% (up from 125%) |
|
Variable Price Betting Percentage: |
142% (up from 118%) |
| Subsequent Betting Pattern |
|
|
A uniform inflow of set price bets then
occurs until the total pool reaches about $20,300 (just over double the original pool
size). |
|
Set Price Betting Percentage: |
118% (indicating set prices about the same
level as bookmakers’ average final prices; also better set prices than
at the beginning of set price betting (125%) and much better prices than
immediately after the 22 limit bets (181%)). |
|
Variable Price Betting
Percentage: |
115% (indicating better variable prices than
at the beginning of set price betting as well as better prices than for
the variable price tote in isolation (both 118%); also better prices
than the 142% immediately after the 22 limit bets). |
| Final Betting Percentage |
|
|
As the final pool would typically be about
10 times higher than the initial pool size indicated above, an average
distribution of subsequent set price and/or variable price bets would
further dilute the effects of large early bets. [top] |
| Initial Settings (Prior to Set Price Betting) |
|
|
Initial Pool Size: |
$10,000 (variable
price bets only) |
|
Expected Final Pool Size: |
$100,000 (a mixture of variable
price bets and set price bets) |
|
Commission Rate: |
15% |
|
Bet Limit: |
An amount which, if the bet is
successful, would take out about 10% of the current net pool. |
|
Discount for Early Variable Price
Bets: |
- |
|
Pool to Which the Discount
Applies: |
- |
|
Variable Price Betting Percentage
(Opening): |
118% |
|
Set Price Betting Percentage
(Opening): |
125% |
|
|
The set prices are only about 5% lower than
the variable prices (calculated by taking the reciprocal of 118 / 100
and 125 / 100 and subtracting the two). |
|
|
The
average betting percentage for bookmakers at the opening of betting can often be
about 145%. The
prices here are much better (higher) and so there is considerable scope
to lower the set prices further should that prove necessary. |
| Early Set Price Betting Pattern |
|
|
A series of 8 limit bets totalling $2,000 is
made on one runner which commits nearly $6,000 to be paid out on that
runner from the pool of $12,000 and a net pool of $10,200 (i.e. nearly
60% of the net pool, clearly a substantial amount). This takes the
dividend from 4.0 (odds of 3.0/1) to 1.9 (odds of 0.9/1 (9/10)), quite a
significant change in price for such a short priced runner. This is
expected to be a relatively unusual event although it would occur more
often than the situation in Example 1. After the 8 limit bets; |
|
Other runners: |
All drift by 20% (variable price) |
|
Set Price Betting Percentage: |
140% (up from 125%) |
|
Variable Price Betting Percentage: |
125% (up from 118%) |
| Subsequent Betting Pattern |
|
|
A uniform inflow of set price bets then
occurs until the total pool reaches about $19,700 (almost double the original pool size). |
|
Set Price Betting Percentage: |
120% (indicating set prices about the same
level as bookmakers’ average final prices; also better set prices than
at the beginning of set price betting (125%) and better set prices than
immediately after the 8 limit bets (140%)). |
|
Variable Price Betting
Percentage: |
116% (indicating better variable prices than
at the beginning of set price betting as well as better prices than for
the variable price tote in isolation (both 118%); also better prices
than the 125% immediately after the 8 limit bets). |
| Final Betting Percentage |
|
|
As the final pool would typically be about
10 times higher than the initial pool size indicated above, an average
distribution of subsequent set price and/or variable price bets would
further dilute the effects of large early bets. Also, there is plenty of
scope for set prices and/or variable prices to become much higher as the
price differential for the slightly lower set prices feeds into the
pool. [top] |
| Initial Settings (Prior to Set Price Betting) |
|
|
Initial Pool Size: |
$10,000 (variable
price bets only) |
|
Expected Final Pool Size: |
$100,000 (a mixture of variable
price bets and set price bets) |
|
Commission Rate: |
15% |
|
Bet Limit: |
An amount which, if the bet is
successful, would take out about 10% of the current net pool. |
|
Discount for Early Variable Price
Bets: |
5% |
|
Pool to Which the Discount
Applies: |
$10,000 |
|
Variable Price Betting Percentage
(Opening): |
125% |
|
Set Price Betting Percentage
(Opening): |
141% |
|
|
The set prices are about 9% lower than
the variable prices (calculated by taking the reciprocal of 125 / 100
and 141 / 100 and subtracting the two). |
|
|
The
average betting percentage for bookmakers at the opening of betting can often be
about 145%. The
prices here are better (higher) than that. |
| Early Set Price Betting Pattern |
|
|
A series of 9 limit bets totalling over
$1,900 is made on one runner which commits nearly $6,000 to be paid out
on that runner from the pool of almost $12,000 and a net pool of over
$9,600 (i.e. nearly 60% of the net pool, clearly a substantial amount).
This takes the dividend from 4.2 (odds of 3.2/1) to 1.9 (odds of 0.9/1
(9/10)), quite a significant change in price for such a short priced
runner. This is expected to be a relatively unusual event although it
would occur more often than the situation in Example 1. After the 9
limit bets; |
|
Other runners: |
All drift by 20% (variable price) |
|
Set Price Betting Percentage: |
153% (up from 141%). |
|
Variable Price Betting Percentage: |
130% (up from 125%) |
| Subsequent Betting Pattern |
|
|
A uniform inflow of set price bets then
occurs until the total pool reaches about ($19,900 nearly double the original pool). |
|
Set Price Betting Percentage: |
121% (indicating set prices about the same
level as bookmakers’ average final prices). |
|
Variable Price Betting
Percentage: |
116% (indicating better prices than for the
variable price tote in isolation (118%); also better prices than the
130% immediately after the 9 limit bets). |
| Final Betting Percentage |
|
|
As the final pool would typically be about
10 times higher than the initial pool size indicated above, an average
distribution of subsequent set price and/or variable price bets would
further dilute the effects of large early bets. Also, there is plenty of
scope for set prices and/or variable prices to become much higher as the
price differential for the slightly lower set prices feeds into the
pool. [top] |
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