4 ms·

Do you have more information about this? I thought "the bank always wins" (or the broker in this case).

melling 7y ago
Jim Simons https://news.ycombinator.com/item?id=21423845 https://news.ycombinator.com/item?id=21423845 Maybe Ed Thorp too: https://en.m.wikipedia.org/wiki/Edward_O._Thorp https://en.m.wikipedia.org/wiki/Edward_O._Thorp
- phyalow 7y ago
  And barely a drop about TGS on the clearnet (aside from some paywalled BBG articles). They are basically the continuation of Ed Thorps business Princeton Newport Partners.
  - deepnotderp 7y ago
    TGS is extremely secretive https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mystery-13-billion-philanthropists-revealed.html https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mys...
- look_lookatme 7y ago
  That comment links to a Youtube video I just watched and it's interesting that he directly confirms that there is an upper bound to the amount of money their model can manage and that they are comfortable limiting the scope of the game as a result. I guess that kind of honesty is easy when you are billionaires making money off your own money.
Nokinside 7y ago
Bookmakers make their profit from the margin between the odds they give. Example. If the probability of outcome is exactly 50-50, he odds they give are 1.9 and 2.11 and they pocket the difference (completely fair odds without margin would be 2.0 both sides) It does not matter what the outcome is. If they balance the bets for and against perfectly, there is no risk. They generally try to balance their liability but having preferred winner can increase profits with some additional risk. If people place bets on the other side more, bookmakers move the odds to balance the bets from both sides. At some point the odds can be skewed so much that professional better can make money even after the bookmaker takes his margin. That money is taken from other betters. But if the bookmaker is not fully balanced it can come from the bookmakers pocket.
- Maledictus 7y ago
  Thank you.

Jim Simons https://news.ycombinator.com/item?id=21423845 https://news.ycombinator.com/item?id=21423845 Maybe Ed Thorp too: https://en.m.wikipedia.org/wiki/Edward_O._Thorp https://en.m.wikipedia.org/wiki/Edward_O._Thorp

phyalow 7y ago
And barely a drop about TGS on the clearnet (aside from some paywalled BBG articles). They are basically the continuation of Ed Thorps business Princeton Newport Partners.
- deepnotderp 7y ago
  TGS is extremely secretive https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mystery-13-billion-philanthropists-revealed.html https://www.google.com/amp/s/www.cnbc.com/amp/2014/05/09/mys...
look_lookatme 7y ago
That comment links to a Youtube video I just watched and it's interesting that he directly confirms that there is an upper bound to the amount of money their model can manage and that they are comfortable limiting the scope of the game as a result. I guess that kind of honesty is easy when you are billionaires making money off your own money.

Nokinside 7y ago

Bookmakers make their profit from the margin between the odds they give. Example. If the probability of outcome is exactly 50-50, he odds they give are 1.9 and 2.11 and they pocket the difference (completely fair odds without margin would be 2.0 both sides) It does not matter what the outcome is. If they balance the bets for and against perfectly, there is no risk. They generally try to balance their liability but having preferred winner can increase profits with some additional risk. If people place bets on the other side more, bookmakers move the odds to balance the bets from both sides. At some point the odds can be skewed so much that professional better can make money even after the bookmaker takes his margin. That money is taken from other betters. But if the bookmaker is not fully balanced it can come from the bookmakers pocket.

Maledictus 7y ago
Thank you.