4Apr

Commission in Online Gambling from Poker to Stock Trading

All these gambling investments are taken place in an environment, which provides some services. And what do I mean by that…

Let”s say that someone has found an edge in poker. He finds 3-4 other players who also think that they have found an edge against other players (usually in poker terms, edge has the meaning of skill) and all together want to sit and play. They have, however, many problems to confront such as, who will keep the money until the end of the game, who brings the chips, who will guarantee for the decks, who provides the house, etc.

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So, they have another friend who doesn”t play poker, but is offering a room in his house, a poker table, chips and he is the one keeping the money, so that the team can play their game totally concentrated. Well, this friend is providing these services and is charging them some money, which is his commission.

Respectively, stock brokers charge commissions for their orders (since without them, traders couldn”t work), online poker rooms charge commission (rake) for the games the gamblers can play there, betting exchanges charge their commission for the trading platforms they provide to bettors/traders, etc.

Does that commission affect the investment”s performance? But of course! And greatly as a matter of fact. However, commission”s influence depends on the field of gambling, the strategy, the money management and the way the commission is implied (per order, per bet, per time frame, etc.).

Therefore, the pro gambler needs to find his field of action, his edge, to take into account the commission and… Is he then ready for the long run profit?

If only it was that simple (although for some it already sounds complicated!).

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About Jim Makos

Jim is a writer and gambling expert. He began with card counting at blackjack tables, then moved to sports trading at betting exchanges, played online poker and ended up investing in US stock markets and forex. Nowadays he mostly writes than gamble or invest. Connect with Jim: StockTwits | TradingView