Betting Intermediation

Match between Australia and Japan just ended in a 3 - 1 in favour of the Kangaroos.. and that all happened in the last 10 mins.. i think those that bet Japan will flip in the last 10 mins.. hahaa.. i wonder how the bookies are doing.

But as they are, they do perform the job of matching.. lol.. similar to that of Financial Institutes (eg. Banks) where they match loans and deposits of different interest rates. For the bookies, it'll be matching the odds. As such, i conclude, bookies will make good bankers! Haha.. they also perform the main functions of banks, which includes the collection and analysing of ingformation. They also provides the function of brokerage without altering the nature of the claim. The only thing different.. they don't really alter the claim (or rather, the bet) in any way. In banks, maturity and liquidity is transformed.. for example, a short term liquid depsit to a long term illiquid loan. But for the bookies, in goes money, out comes money.. and the bookie profits from the way they position their odds. (more related to interest rate than intermediation)

Another thing that i've observed.. is that, you could actually hedge your bet! Haha.. but for what reason in betting, is maybe an obsession with hedging (which means no win and no lose).. and maybe in the end, there'll be not much time to source out all the available odds and information.. this, in theory is possible.. but i guess nobody will want to forfeit the profit..

All in all, actually there is still much differences between these two worlds.. if not, all bookies can be bankers liao.. for what be bookie and get caught?

And for me, my obsession is which FI for the moment.. and as such, tried ways to twist an irrelevant subject to something much interesting.. to whatever effects, i don't know.. just hope that i'll pass FI and get into the 2nd round perhaps. That should spare me the agony of a 4th year in school.