How bookmakers create their balance books

How bookmakers create their balance books

Creating a Balanced Book

When a bookmaker has a balanced book on a particular market, he stands to make approximately the same amount of money regardless of the outcome. With an imbalanced book, the outcome would affect how much is made, and it could even result in a loss. A balanced book is usually the preference, for obvious reasons, and is what odds compilers typically aim for.

Continuing with the tennis match example, a balanced book would look something like this.

How often does a bookmaker balance their book?

A bookmaker isn’t always seeking to balance their book. Given their pockets will be deeper than most clients’, bookmakers will generally welcome variance, especially when they think they have superior predictions. The belief that a bookmaker is looking to balance their book minute to minute, hour to hour, or even day to day is generally an oversimplification.