What is the reduction factor on horse racing?
Betkeen offers the best odds and the most unique opportunities of the betting exchange. Horse racing is obviously one of the king disciplines that provide a lot of value for bettors and traders. But still, some of the users are not yet familiar with all the betting technical, this is why we will explain what is the reduction factor.
Note: if you are a beginner or not very experienced on the betting exchange, we first recommend you to read the following article: Betting exchange FAQ.
How does the reduction factor work on a Win market?
When a horse did not start the race (non-runner), the odds are recalculated to consider there is less competition in the race. Therefore, each remaining horse is given a reduction factor. The reduction factor will be bigger when the horse that pulled out was the favorite or among the favorites, it will be smaller if the horse was very unlikely to win. This rule was put in place to guarantee that all bettors and traders are fairly treated. Please note that for convenience purpose, a reduction factor of 2.5% or less will never be applied.
Below's formula is to know what are the new odds following a reduction factor:
(Odds / 100) x reduction factor of non-runner = amount to reduce original odds.
- You bet on the horse Lucky Charm for 100 euros @ 4.0.
- Another horse pulls out with a reduction factor of 9.3%. The calculation is: (4.0 / 100 ) x 9.3 = 0.37. Your new odds are: 4.0 - 0.37 = 3.63.
- You bet against the horse Monday Sunshine for 50 euros @ 6.2 (your total liability is 260 euros).
- Another horse pulls out with a reduction factor of 8.7%. The calculation is: (6.2 / 100 ) x 8.7 = 0.54. Your new odds are: 6.2 - 0.54 = 5.66 (your total liability changes to 233 euros).
How does the reduction factor work on a To Be Placed market?
In a To Be Placed market, a horse has less influence on your odds of winning. The major difference between a Win market and a To Be Placed market is that the reduction factor is only applied on the potential winnings.
- You bet on the horse Lucky Charm for 100 euros @ 2.5.
- Your potential winning should be 100 x (2.5 - 1) = 150 euros.
- Another horse pulls out with a reduction factor of 18%. The calculation of the possible winning is 150 x (100% - 18%) = 150 x 82 / 100 = 123 euros. Therefore the reversed traded odds would be 2.23.
Please note that all reduction factors will be applied, even less than 2.5%.
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