For example, say that it is an extreme case in which two teams A and B are competing, and it is quite clear that team wins the game. How likely will be decided?
Traditional Paris is a bit of a market every product or contract. The bookmaker makes money from buyers and sellers to find transaction fees charged and with personal risk as possible.
Say Chun-Li and M. Bison Street II are about to be placed in a hockey game. In a world where there are no links and everyone has the same chance to win, the result looks like this:
Chun-Li earned 50%
-Meter-. Bison earn 50%
If you bet your money, go on one of these results in a fair world, you get a 1: 1 odds. In other words, put $ 100 on Chun-Li and if your path to victory begin lightening, the original $ 100 will be $ 100 over the back so we get this gives the entire company an expected value of $ 0 since the Half the time you win $ 100 and half the time you win $ 100 in this scenario, the broker has no money either. Let’s tell the bookmakers you and your friend bet against him. You bet on Chun-Li and she wins. This happens:
1. You and your friend each put $ 100 in the pot. The pot is $ 200.
2. Your friend loses all his money. You get all the $ 200 in the pot.
This scenario obviously does not make sense to the bookmaker, because the bookmakers do not get money. Thus, a profit is to ensure bookmakers with fixed odds and disbursements. For example, instead of offering 1: 1 random right in this game, the bookmaker can offer 1: 2 odds for each bet. That is, if you bet $ 100 on one of Chun-Li and M. Bison, who will receive a copy of $ 50 $ 100 + $ 150 if you win. In this example, if you bet on Chun-Li and won, this would happen:
1. You and your friend each put $ 100 The pot will be $ 200.
2. You win the bet. Your friend gets money. It is obtained from $ 150.
3. The intermediary will get $ 50 to stay.
This is an extreme example, but conceptually, which is how a bookmaker can guarantee profits on a bet. It’s a little weird to think, but with a 1: 2 odds, maker creates a universe in which the bet would be fair if every fighter had a chance to win 66%. So, people who make problems are pay-out a little lower, and not than they are in a perfectly just world. And this difference is the transaction cost lead maker.
Makers make this money in exchange for taking risks. In fact, all your money would not bet at once. In the above scenario, the bookmaker is in a good situation because it has balanced his book someone’s bet on Chun-Li and someone wagering on M. Bison. However, this is often not the case. In the afternoon, the bookmaker could try in a place where everyone is called on Chun-Li to bet money. When done with these paris, taking risks is essentially to lose the other side of the bet (bet on Chun-Li). You must find the people to bet on M. Bison. One way to do is to adjust the chances and reduce payment promises to Chun-Li partisans, until more people support Mr. Bison. Or could you name other bookmakers who might have the opposite problem (too many people bet on M. Bison) and the risk of a fire in the bookkeeping.
Conceptually, it is the same way a market maker work on a financial market, as on the stock market. Someone might want to sell a lot of M. Bison Corporation. The market maker would give them a slightly lower price “fair” is in exchange for acquiring their shares and taking the risk. The market maker seems to shift these stocks to the buyer for more money in the future. This is the buyer and seller on the market.
There are other methods and nuances Paris, and I am certainly no expert (or something like that). So it would be nice to hear someone who really knows the world. But this is the general concept of making a market in Paris behind.