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Prediction market
Friday, February 20th, 2009
Prediction markets are speculative (i.e., betting) markets created for the purpose of making predictions. Assets are created whose final cash value is tied to a particular event (e.g., will the next US president be a Republican) or parameter (e.g., total sales next quarter). The current market prices can then be interpreted as predictions of the [...]
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Arbitrage betting
Sunday, February 1st, 2009
Betting arbitrage is a particular case of arbitrage arising on betting markets due to either bookmakers’ different opinions on event outcomes or plain errors. By placing one bet per each outcome with different betting companies, the bettor can make a profit.In the bettors’ slang an arbitrage is often referred to as an arb. A typical [...]
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Bookmakers
Tuesday, October 14th, 2008
A bookmaker, bookie or turf accountant, is an organisation or a person that takes bets and may pay winnings depending upon results and, depending on the nature of the bet, the odds. Bookmaking may be legal or illegal, and may be regulated; in the United Kingdom it was at times both regulated and illegal, in [...]
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Betting exchanges
Wednesday, September 24th, 2008
A betting exchange is a p2p gambling website acting as a broker between parties for the placement of bets. The concept is similar to that of a stock exchange or a futures exchange, where in this case the commodity being traded is a bet, rather than a stock or futures contract. Most betting on a [...]