[jedi]

DeucesUp, Thanks for the info, but I may have to ask you to repost it again in a more newbie friendly format.

I'm not even sure how this works exactly. Let me see if I understand it correctly. I was looking at the site myself, so this is my understanding.

Someone sets a line for an event. You can either Buy that event or Sell that event. To sell the event, do you actually have to buy it first, or is it like a short sell? The price for the event will be between 0 and 100. There is a fee to buy or sell, like a stock trading commission.

As the line is set for the event, it won't move, but the price of it could move, depending on how many buyers and sellers there are. While a normal sportsbook moves the line itself, this exchange book moves the price instead. This gives an opportunity for someone to buy and sell the same event before it actually occurs and make a profit.

Either way, the event will "expire" at some point in time. If the event occurs, then it is settled at 100. If you bought it, you'll basically trade it in at the price of 100. If you sold it, you have to "buy it back" at 100 to settle your account. If the event doesn't occur, then it goes off at 0, and the buyers lose, the sellers win. From the DeucesUp post, you get charged a fee for settling this as well, as if it were another stock trade.

Now, what is up with the way they do fees? I get that you're paying fees for every transaction (unless you're the price setter), but it's .4% on everything? So if you buy at 8, you're paying .4% at 8, but you'll settle at 100 if you win, and it's .4% of 100? If you lose, there's no fee?

How is my understanding of how this works?

And what are the other similar exchange sites? Do they all work in the same manner?