Free tax free money, rough rate of 10% APR...

[Somewhatfoolish]

Just to let folks know.

You can currently bet on no election in 2010 on betfair at the price of 1.02. That's very close to 2% interest in under 3 months, and it's tax free because it's a bet.

You would lose your entire investment if there were an election of course. But the chances of that are seriously minimal. You could also lose money if betfair went bust. And you should treat this as a fixed term deposit as you may be unable to withdraw it (by closing out the bet) at a favourable rate until settlement. I think that a sensible discussion of risks

I turnover much more % wise on my betting accounts so I have no real use for this, but it's a genuine opportunity that someone may be interested in.

Edit: Disclosure: There is no disclosure for me to make - I have no positions in that market and have no intentions of opening any.

Edited by Somewhatfoolish on Friday 10th September 19:16

[Somewhatfoolish]

Link is http://sports.betfair.com/Index.do?mi=101083192&am... btw

[14-7]

So you can either make 2% in 3 months or lose everything?

I have £10k to invest at the moment.

I could either make £200 or lose it all in 3 months time. Hmmmm .

Edited by 14-7 on Friday 10th September 20:10

[Somewhatfoolish]

14-7 said:

So you can either make 2% in 3 months or lose everything?

I have £10k to invest at the moment.

I could either make £200 or lose it all in 3 months time. Hmmmm .

Edited by 14-7 on Friday 10th September 20:10

There is no such thing as a risk free investment.

For sure, this is riskier than gilts. But risk:reward stacks up far better than, for example, that for all those folk buying structured products such as, say, this nonsense.

[Somewhatfoolish]

Yes there's some chances, but it's certainly well under 0.05%.

However I ain't gonna waste too much time defending it, I'm not that bothered... I just pointing it out to folk

[F458]

You can't lose your money if Betfair goes bust. Client money is kept separate from Company money. Betfair bailed out Sporting Options another exchange years ago who went bust and lost client money. Betfair are an A+++++ outfit. As for the bet I think 1.02 is value and its probably just someone who wants to free up funds to use elsewhere on BF. However I bet Man U were 1.01 when they were 3-1 up @ Everton today!!!!!

[F458]

Money Traded/Lost on Man U today:

1.01 €259,420
1.02 €338,089
1.03 €716,349
1.04 €167,432
1.05 €34,712
1.10 €121
1.12 €269
1.14 €343
1.15 €429
1.16 €2,964
1.18 €287
1.19 €22
1.20 €61
1.25 €153
1.26 €1,387
1.27 €60,789
1.28 €117,334
1.29 €52,962
1.30 €73,348
1.31 €94,584


Money Bet/Traded on the Draw:
100.00 €163
110.00 €45
120.00 €20
130.00 €10
140.00 €67
150.00 €17
160.00 €20
170.00 €23
190.00 €13
200.00 €5
240.00 €31
250.00 €78
260.00 €0
320.00 €4
360.00 €16
400.00 €6
490.00 €5
500.00 €29
600.00 €0
700.00 €17
1000.00 €21

10 euro 50 cents bet @ 999/1 nice for someone/some people!!!!!!

[Somewhatfoolish]

Quite but it probably betfair equivilant of cabinet trades...

I thought most inplay stuff now was dominated by bots that essentially crossed with themselves except cancelling their bids and offers before they did, unless they wanted them, or something if you see what I mean?

[TuxRacer]

Sounds like a lot of risk for fk all reward to me.