Do owners pay a penalty for withdrawn horses?
Posted: Fri May 20, 2016 10:36 am
I'm currently working on an angle for trading price movements, and although yesterday went reasonably well for me, I noticed that there were rather a lot of withdrawals - this can really mess up my methodology quite badly.
I then got to wondering why there would be so many horses withdrawn, which brought me to the idea that the owners of these horses potentially have the ability to make no-risk money.
If they backed their own horse at early prices, and just waited to see what happened to the price of their horse, then if the price has shortened they can lay off the bet for a profit. If the price has drifted and they don't want to risk their money after all, all they need to do is withdraw the horse and get their money back. Money for nothing, so to speak.
Is there a penalty for withdrawing a horse, to stop owners milking the system in this way?
I then got to wondering why there would be so many horses withdrawn, which brought me to the idea that the owners of these horses potentially have the ability to make no-risk money.
If they backed their own horse at early prices, and just waited to see what happened to the price of their horse, then if the price has shortened they can lay off the bet for a profit. If the price has drifted and they don't want to risk their money after all, all they need to do is withdraw the horse and get their money back. Money for nothing, so to speak.
Is there a penalty for withdrawing a horse, to stop owners milking the system in this way?