We laid it on the exchanges, so we effectively took a £500 bet on it. If it won, the odds of the lay were such that we had to pay them £295, so £295 was our liability by laying £500 at 1.59 I think it was.
It did win so the "backer(s)" who matched it, effectively won £295 of us.
So we didn't bet £500 on it losing, we took a bet of £500 on it winning at odds of 0.59 to 1.
Hope this clarifies.
Their £500 bet effectively won them (£500 * 0.59) = £295 profit, minus their exchange commission, for us, the loss was £295.
Comments
If VICTORY BOND wins, we win £2,938.20 minus our £295 hedge loss.
pool £26, 443
The share value will now go to just over £10 per share, should I declare a £5 dividend or leave it and see how the next couple of attempts go?
Cheers,
G
It did win so the "backer(s)" who matched it, effectively won £295 of us.
So we didn't bet £500 on it losing, we took a bet of £500 on it winning at odds of 0.59 to 1.
Hope this clarifies.
Their £500 bet effectively won them (£500 * 0.59) = £295 profit, minus their exchange commission, for us, the loss was £295.