As the nature of exchange betting revolves around users having the capability to submit bets (both matched and unmatched) as quickly as possible, all users active on BETDAQ accept Best Execution as an automatic feature of their participation on the BETDAQ Exchange.
What is Best Execution?
Best Execution is a feature of exchange betting that is fundamental to the orderly matching of bets on BETDAQ. Without it, the exchange would not operate in an efficient and orderly manner because Best Execution ensures that the best available price is always the first price matched.
When Best Execution applies, the result is always a price that is advantageous to our customers. It only applies to bets that offer a better price than what a customer originally requested. As a result, Best Execution will never result in a customer being matched at a worse price than originally requested. It will only result in either a larger return from a Back bet or a smaller liability from a Lay bet.
Best Execution occurs when:
A customer wishes to take a price offered and available on BETDAQ and while that request is being processed, another offer at better odds than the original becomes available. The customer’s bet will then be automatically matched at the better odds.
Example 1 – Backing a Selection
Steve fancies a horse to win at odds of 6.0 so he places a £10 stake, backing the selection for a profit of £50. However, while processing the bet, another offer becomes available on the exchange at 6.2 and this offer is automatically applied to Steve’s bet. Steve’s profit as a result of Best Execution will be £52.
Example 2 – Laying a Selection
Dave doesn’t fancy a horse to win at odds of 5.0 so he places a £10 stake, laying the selection for a liability of £40. However, while processing the bet, another offer becomes available on the exchange at 4.9. This offer is automatically matched with Dave’s bet. Dave’s liability as a result of Best Execution will be £39.
A Customer will never be disadvantaged
Because Best Execution works only when a price change occurs that means better odds on a selection are automatically applied, the converse of this also holds true: If odds on a selection worsen, a customer will not be automatically matched at the inferior price. What happens in this occasion is that their bet is not matched at the price selected, and instead it appears as an offer on the exchange. The customer can then decide to cancel the bet, or wait for another customer to match it
Example 3 – Backing a Selection
Back to Steve taking an offer of 6.0 on the exchange. The price of 6.0 (profit £50) that he wants to take is no longer is available and shortens to 5.8 (profit £48). Steve’s bet will not be matched but instead becomes an offer for matching if the best price available becomes 6.0.
Example 4 – Laying a Selection
Dave wants to lay a horse at odds of 5.0 for a £10 stake and a liability of £40. The odds for this selection increase to 5.2 while Dave is processing his bet, which would mean a liability of £42. His bet will not be matched, but instead becomes an offer for matching if the best price available drops to 5.0
Best Execution will also work for part matching
Best Execution also works automatically where a portion of the bet a customer wishes to can be matched at better odds.
Example 5 – Backing a Selection
Steve now wants to back a selection for a stake of £500 at a price of 2.0. However, £100 becomes available at a price of 2.10 while Steve is submitting his bet. Best Execution will match Steve’s bet at 2.10 for £100 and the remaining £400 at 2.0 ensuring Steve’s profit will be greater if the selection wins (£1010 vs £1,000).
Example 6 – Laying a Selection:
Dave wants to lay a selection for a stake of £200 at a price of 2.0. However, £50 becomes available at 1.98 while Dave is submitting his bet. Best Execution will match Dave’s bet at 1.98 for £50 and the remaining £150 at 2.0, ensuring Dave’s liability will be smaller if the selection wins (£199 vs £200)
Best Execution can also protect a customer when a mistake is made
If a customer accidentally enters a price at inferior odds than the current price available, best execution will ensure that the customer’s bet will not be matched at these lesser odds and will protect the customer from this potential error by matching the bet at the best price currently available.
Example 7 – Backing a Selection
Steve is looking at a selection in a greyhound race and accidentally enters a price of 2.5 with a £10 stake when he wished to enter a price of 3.5 – the market is at 3.0. Steve confirms his bet before noticing that he has made a mistake. However, Steve is protected by Best Execution as his bet was matched by the exchange at the price of 3.0 rather than the smaller price of 2.5.
Example 8 – Laying a Selection
Dave wishes to lay a selection in a greyhound race and accidentally enters a price of 6.0 with a £50 stake when he wished to enter a price of 3.0 – the selection is currently available to lay at 3.0. Dave has confirmed the bet before he realises his mistake. However, his bet is matched at 3.0 for £50, ensuring his liability is £100 rather than £250.