SBC News SpiffX Game Outlook: Premier League price volatility

SpiffX Game Outlook: Premier League price volatility

spiffxwebsiteMartin Fransson, founder of SpiffX, discusses price movements in odds and the unique opportunity that his exchange brings to the market to those who monitor those changes.

How was SpiffX developed?

The founders of Spiffx have extensive knowledge in automated odds trading and have noticed that the gaming industry lacked instruments for effective trading. That is how the idea to create SpiffX was born. SpiffX wanted to bring new trading mechanisms to the sports betting market. The betting platform was developed to serve as a tool for both sophisticated sports traders and betting operators. Sportsbooks will be able to use the market for pricing and strategies rather than using their own books for hedging.

SpiffX has also introduced intelligent order types and features which make it easier for players to get their orders matched on our platform. These features are typically used in the financial sector to match transactions in an effective way, namely the ‘Mid-Price Acceptance’, the ‘Fill or Kill’, the ‘Fill and Kill’ and the ‘Floating Order’. Such features allow more flexibility and assist traders with a more intelligent and automated way of betting.

What can you tell us about SpiffIndex?

SpiffIndex is a new and unique product offered by SpiffX that helps traders achieve leverage in their betting. It provides an effective market place where professional traders can maximise profit using a wide range of instruments to speculate in odds movements and to price-hedge.

How is it possible to price-hedge a bet with SpiffIndex?

SpiffX can provide users with a calculated market price (the SpiffIndex) based on numerous odds market sources. This guarantees a relevant and true market price. Users simply need to predict the result of the match and decide whether the odds will move over or under the SpiffIndex, based on a traditional back- and lay- transaction. Usually our users back first if they believe the odds will fall and then lay to make a risk-free profit. We’ve even developed a system at SpiffX where users can do this double transaction in one bet.

Using the combo of a traditional bet and a bet on the SpiffIndex product it is possible to price-hedge a bet. For example, placing a back bet of €100 on Man United at 1,50, combined with a Man United OVER price-hedge bet on SpiffIndex of 1% of the stake (€1), the combined bet will ensure that you will get rewarded if the price starts to increase.

So exactly how much do the odds move before kick-off ?

SpiffX has analysed SpiffIndex data from the past Premier League 2014/2015 season and reported that the average index volatility 3 days before a favourite team game is 12 points. As an example, the selection ‘home team to win’ will move an average of 12 points from 1.80 to 1.68.

In certain instances SpiffX has also seen big variations with large drops of around 50 points in pricing peaks. Various matters influence the market movements ranging from manager decisions, player injuries, and weather, to name but a few. It is also interesting to note that the average price volatility 3 hours before kick-off is 7 points.

The distinctive SpiffIndex product allows players to gain leverage when speculating on similar odds movement. If you win with SpiffIndex, your stake will be multiplied by the number of points the price index has moved from the buying price. For example: you select home team and buy €100 at odds under 1.38. Index price is 1.40. So if the home team wins and the price decreases to 1.30 you will win €700 (8points * €100 stake – €100 stake).

It is useful also to start analysing other leagues and to look into variations between teams and make comparisons between Premier League and other European Leagues such as Serie A, La Liga and Bundesliga.

Odds trading is becoming very effective and SpiffX’s new instruments are designed to be very attractive tools that help simplify different strategies. We see this as the first step to integrating financial influences in the odds market.

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