Getting better odds consistently can mean the difference between winning and losing long term.
Discount rates enable Betfair customers to pay less commission providing even better odds on the exchange. Depending on how and how much you use your account, you may be automatically paying less commission.
For example, if you have a discount rate of 10% and the Market Base Rate is 6%, you will pay a rate of 5.4% on net winnings instead of the full 6%.
6% Market Base Rate x 10% (your discount) = .60
6% Market Base Rate – .60 = 5.40%
Taking 2016 Melbourne Cup Winner Almandin as an example, you can see the what a Betfair Discount Rate can do to the odds you can get on the exchange.
This example takes the BSP less 6% Market Base Rate.
Discount Rates & Exchange Points
Your Discount Rate is calculated off your Exchange Points balance.
You earn Exchange Points every time you bet on a market. These points are calculated by converting your activity to British Pounds at the time of settlement. You will earn 1 point for every 10 pence of commission paid (if you have net winnings) or implied commission (if you have a net loss).
Implied commission is calculated in the same way as commission but refers to losses rather than winnings. Exchange points are awarded equally whether you win or lose.
The Betfair Points table enables you to see what points balance is required for each Discount Rate. Click on points table to enlarge it.
To view your Exchange Points, simply sign in and click on My Account. Your points summary will be in the summary view.
Weekly Decay of Exchange Points
Once your Discount Rate has been calculated, your Exchange Points balance is reduced by 15%. This is known as Weekly Decay. If you continue to bet at the same level each week, your Discount Rate will remain unchanged. If your Exchange Points at any time imply a higher Discount Rate, you will move to the rate immediately.
Another way of preventing Weekly Decay is to take a Betfair Holiday. A Betfair Holiday is a week that you can book in via the My Account section, where Exchange Points do not change, regardless of your activity. This means if you don’t bet (or bet less) you won’t incur Weekly Decay and if you do bet, you won’t incur any points.
You earn one Betfair Holiday when you register and one additional Betfair Holiday every three months thereafter. You may use your Betfair Holiday at any time but cannot accrue more than four unused Betfair Holidays on your account.
To view your points statement, or book a Betfair Holiday, simply sign in, click on My Account and on the Summary Page in Exchange Points click on “More”.