Exchange: How do reduction factors work on place markets?

There is a difference on how the reduction factors work on 'Place' markets compared to 'Win' markets.

Win markets reduction factors are calculated to 100% when adding up all runners. In a 'Place' market a single horse has less impact on your chance of winning and reduction factor totals can be well over 200%.

The main difference between the two markets is that in a 'Place' market the reduction factor is applied to the potential winnings on the bet only and not to the traded price.

Example:
- You matched a back bet in a place market on the horse 'Diamond Night' for £10 @ 8.0.
- Your potential winning would be £10 x (8.0 - 1) = £70
- A horse in the same race is now withdrawn with a reduction factor of 25%
Your potential winning would be now £70 x (100% - 25%) = £70 x 75 / 100 = £52.50
Therefore the reversed traded price would be 6.25.
(In a win market a 25% Reduction Factor would calculated a price of 6.0).


Other differences of 'Place' markets:

  1. All reduction factors will be applied (2.5% or less included)
  2. Only if the reduction factor for a withdrawn horse is 4.0% or greater, all unmatched lay bets will be cancelled.

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