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[Eddie D]

Can anybody give me a brief description of how this works as I cannot follow it from the tutorial.
Example;In the 7-45 at Bangor tonight Sagalyrique is quoted for example at Buy 3.95 green, estimated osp 4.02 grey and sell 4.3 red. If I think the price will decrease I stake £100 to buy at 3.95, which is on offer. Assuming I am right, the osp should move lower to say 3.7. The Q is how much have I won and could I have lost more than £100. In what circumstances would I have lost anything? How much would I have lost if the osp had been determined at 5.25? At first I thought the transaction was some kind of spread but it is not so.

[Bertrand]

Edward,

I trust that our email exchanges have clarified your interogations.

I am however posting the explanation below, should other members of the forum be interested in knowing more about how it works.

You will find on http://www.oddsfutures.com/help.of#osp a general explaination on how the oSP and settlements are calculated.

We calculate you settlement according to the following formula:
=STAKE*(Contract Price/MIN(MAX(Contract Price/2,Settlement Price),2*Contract Price)-1)
In your 1st example: You buy a horse with a stake €100 at odds (Contract price) of 3.95. The oSP at the off is 3.7.
Your profit would have been €6.76
In you 2nd example: You buy a horse with a stake €100 at odds (Contract price) of 3.95. The oSP at the off is 5.25.
Your loss would have been €24.76
(please note that commissions have not been taken into account in these calculations)

In addition to these calculation, we have in place a counter-party stop loss mechanism (http://www.oddsfutures.com/files/stoploss.html).
The principles of this mechanism are as follows:
When buying odds prices, your profits are limited to the total amount of your stake, and your losses to 50% of the amount of your stake.
When selling odds prices, your profits are limited to 50% of the amount of your stake, and your losses to the total amount of your stake.
You therefore can never loose more than you stake, and in practice the likelihood of loosing your whole stake is extremely low. It also meens that, when buying, you can trade up to twice the amount in your wallet.

I hope these comments will be useful to you.

[Author]

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