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Why should arbing line moves between bookies be stupid or banned? This is what market makers doing 24/7 on public stock markets. This is what creates "efficie
by beambot 1y ago
Why should arbing line moves between bookies be stupid or banned?
This is what market makers doing 24/7 on public stock markets. This is what creates "efficient markets".
- skippyboxedhero 1y agoBecause it isn't the same as public stock markets. The price on different bookmakers is different because the product is different, bookmakers aren't offering an equivalent product to each other (for example, the biggest one is regulation, there is no stock market that invests tens of millions of dollars in stopping people buying stocks, every large bookmaker does this). It doesn't improve efficiency in any way because the price you are taking is known. If you are betting on the open with Asian books, you are adding to price discovery. By the time most bookmakers open their lines, the price of the risk is known so you placing your $100 bet isn't improving efficiency, it is just noise.
- beambot 1y ago> there is no stock market that invests tens of millions of dollars in stopping people buying stocks There definitely are -- everything from margin limitations, maintenance requirements, regulatory bodies, and counter party risk. > It doesn't improve efficiency in any way because the price you are taking is known. The price you are taking when you buy a stock is also known to all participants. Just like sports betting, the marketmaker (bookie) is profiting between the bid & ask spread.