US20110065494A1

US20110065494A1 - Sports wagering exchange and method therefor

Info

Publication number: US20110065494A1
Application number: US12/585,350
Authority: US
Inventors: Nicholas Kennedy; Andrew Blumberg
Original assignee: Nicholas Kennedy; Andrew Blumberg
Current assignee: SPORTS WAGERING EXCHANGE LLC
Priority date: 2009-09-11
Filing date: 2009-09-11
Publication date: 2011-03-17

Abstract

A system and method for purchasing and trading wagering shares representing one of two possible outcomes of an event before and during the event. During each of one or more stoppages of the event, the price of the wagering shares representing a first outcome of the event and the price of the wagering shares representing a second outcome of the event are adjusted according to a progression of the event and to market supply and demand for the wagering shares. Purchasing, by bettors, of the wagering shares prior to the start of the event and trading, between the bettors, of the wagering shares prior to the start of the event and during each of the stoppages of the event is facilitated by an exchange.

Description

BACKGROUND

1. Field
The embodiments discussed herein are directed generally to the fields of gambling and financial instruments. More specifically, the embodiments discussed herein relate to providing systems and methods for transforming bets or wagers on sporting events or games into tradable financial instruments that can be varyingly valued during the event or game according to the progress of the event or game wagered on and according. Moreover, the tradable financial instruments are subject to varying prices due to market forces, such as supply and demand, and can be traded through an exchange that provides infinite liquidity by standing ready to buy and sell the financial instruments at all times.
2. Description of the Related Art
Wagering on sporting events, both in sports books in casinos and on the Internet, is a large and growing industry throughout the world. Various types of betting products and systems exist that facilitate betting on the outcome of a particular game. For example, a patron in a sports book may bet on various aspects of the outcome of a particular game or sporting event, including the winning team, the point margin by which that team wins, or the combined final score (points, etc.) of both teams. In any sports book, the most important feature of a sports wager is the spread. The spread is the nominal point value that handicaps the game. The spread can also be the nominal value of the total points scored in a game (more commonly referred to as the over/under). Presently, sports books may determine their own spreads in-house or, for example, may purchase spread information from a variety of sources for a fixed monthly rate. The sports books subsequently accept bets based on those spreads. After the game takes place, bettors either collect or lose the money they wagered.
There also exist sports books and/or online exchanges that facilitate trades of gambling wagers between registered customers. These sports books and/or online exchanges operate in various ways, but the two leading operational methodologies are: 1) bettor to bettor bid/ask based on price; and 2) bettor to bettor bid/ask based on odds. The first methodology allows bettors to negotiate with one another on a sell price and a buy price of a wagering contract throughout the course of any event involving two or more outcomes (i.e.: sporting event, election, reality TV show, horse race). The online exchange then facilitates this trade based on the mutually agreed upon price. The second methodology facilitates wagers based on a bid/ask system in which bettors offer each other odds based on a wagering contract. Bettors offer each other varying odds throughout the course of any event involving two or more outcomes. Both of these methodologies require market participants to agree on a price for a trade to occur and, thus, illiquidity issues are rampant.

SUMMARY

It would be an advance in the sports wagering industry to provide a highly adaptable method for transforming bets or wagers on sporting events or games into tradable shares in order to better facilitate placing bets, trading bets, collecting winnings, managing risk, etc. It would also be an advance for the method to be able to incorporate the opinion of professional odds makers on the probability of an outcome during the course of a game. Secondarily, it would be an advance in the trading process to incorporate market forces of supply and demand with the odds makers' opinions once the game has started in order to formulate an accurate market price for the shares. Also, it would be an advance to provide the market with a market maker that provides the exchange with infinite liquidity for facilitating the placing of bets, the trading of shares, and the exchange of money, especially when there aren't an equal number of buyers and sellers who can be matched up.
Various embodiments described herein provide a method for trading wagering shares representing one of two possible outcomes of an event before and during the event. The method includes, prior to the event beginning, adjusting a price of the wagering shares such that a ratio of a number of wagering shares representing a first outcome of the event that are sold to a number of wagering shares representing a second outcome of the event that are sold is within a predetermined range. The method further includes during each of one or more stoppages of the event, adjusting the price of the wagering shares representing the first outcome of the event and the price of the wagering shares representing the second outcome of the event according to a progression of the event and to market supply and demand for the wagering shares. Also, the method includes facilitating the trading of the wagering shares prior to the event and during each of the stoppages of the event.
These, together with other aspects and advantages which will be subsequently apparent, reside in the details of construction and operation as more fully hereinafter described and claimed, reference being had to the accompanying drawings forming a part hereof, wherein like numerals refer to like parts throughout.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of wagering exchange system.

FIG. 2 is a flowchart illustrating a method for trading wagering shares.

DETAILED DESCRIPTION OF THE EMBODIMENTS

An embodiment of the method described herein includes a method for trading wagering shares representing one of two possible outcomes of an event (such as a sporting event or game) before and during the event (the terms “game” and “event” are used interchangeably herein). One or more wagering shares may be combined into a single wagering contract for a particular bettor and any number of wagering contracts may be held for a particular event. Thus, the terms wagering shares and wagering contract are used interchangeably herein. The method is carried out by a system that includes a market maker, which is part of an exchange, that quotes a share price of wagering shares representing each of the two possible outcomes of a particular event. The market maker adds to the liquidity and depth of the market by standing ready to buy and/or sell wagering shares when there aren't an equal number of buyers and sellers who can be matched up. Thus, the market maker assumes some risk in return for making a profit.
Referring to FIG. 1, a wagering exchange system 100 is illustrated. The wagering exchange system 100 may be a computerized digital trading system that accepts bets, facilitates trading, clears and settles trades, registers shares, displays share prices, communicates and/or interfaces with bettors, etc. Each of one or more bettors (for example, bettors 102 and 104) purchase a desired amount of shares representing a chosen outcome of a specific game. In a game in which only two outcomes are possible, a bettor 102, prior to the start of the game, can purchase shares representing a first outcome of the game (for example, a bet that team A “wins” the game) or shares representing a second outcome of the game (for example, a bet that team B “wins” the game). Once a bet has been made, the bettor 102 receives a resultant amount of shares based on the following formula:
Amount wagered ($)/Share Price ($)=Number of Shares.
These shares may be listed with a broker 106, 108 that is licensed to accept and trade wagers on behalf of the one or more bettors 102, 104. The broker 106, 108 may be a separate entity from the exchange 110 or may be incorporated into the exchange 110. There may be a plurality of brokers 106, 108 licensed with the exchange 110 and these brokers 106, 108 may be the vehicle through which bettors 102, 104 place their bets. In order for the bettors 102, 104 to make a bet via the exchange 110, they may be required to pay a pre-bet fee. This pre-bet fee may be raised and lowered for a specific game based on the need for market liquidity. The pre-bet fee may be a fixed dollar amount or may be a percentage of the total amount wagered. This pre-bet fee may be charged by the exchange 110 to the brokers 106, 108, who then may pass the expense on to the bettors 102, 104. Brokers 106, 108 may be required to pay a monthly brokerage fee to the exchange 110 in order maintain trading privileges with the exchange 110.
The price that the bettors 102, 104 pay per share, both prior to the start of a game and during the game, is dependent on market forces. As a non-limiting example, when the exchange first publishes the spread for a given game, all shares may be initially worth $0.50 and can be purchased for this price. For example, if Team A is a ten and one-half point favorite over Team B (a ten and one-half point spread), then the share prices of “Team A−10.5” and “Team B+10.5” would both initially be $0.50. However, once betting begins, the share price fluctuates according to higher demand for one team over the other. For example, a certain amount of time after the spread has been published, if 500 shares have been purchased for Team A and only 100 shares have been purchased for Team B, the price of Team A's shares may be increased by the exchange 110, while the price of Team B's shares may be decreased by the exchange 110. These adjustments in share price are made by the operators of the exchange 110 in an effort to maintain an equal amount of betting on both sides. Alternately, this adjustment can be made as a result of a mathematical formula that may be standard for certain games. The formula may also change based on betting patterns that are specific to certain games. The adjustment may be based on a threshold ratio or a desired ratio range determined by the exchange 110 for each game. For example, if the Team A shares are purchased at a rate of 5 to 1 over the Team B shares, the price per share may be adjusted upward for Team A and downward for Team B. The price may continue to be adjusted until the ratio of shares purchased for Team A to Team B falls within a range or threshold deemed acceptable by the exchange 110. The range or threshold may not be uniformly fixed for all games and can be a game-specific value determined by the exchange 110. In order to avoid price manipulation, a betting limit may be established based on the rules and regulations set forth by the exchange 110.
In order to maximize profit for the exchange 110, the exchange 110 may elect to publish odds from the odds maker that do not include whole number spreads. Instead, the exchange 110 may elect to publish spreads that always use fractions (for example, a 0.5 adjustment) in order to avoid ties (pushes). This would ensure that a game has only one of two possible outcomes, resulting in bets that will clear at either $0.00 or $1.00 per share. The odds makers may be incorporated into the exchange 110 or may be a separate group or entity consisting of multiple odds makers that provides odds to the exchange 100 for a fee.
Once a specific game begins, the odds makers begin to alter the suggested price of the shares for Team A and the shares for Team B based on the continuing progress of the game (for example, the outcome of individual plays, substitutions, injuries, and/or performance) and the exchange 100 facilitates the trading of shares between the bettors 102, 104. The suggested price may be an average or an index of one or more odd maker's opinions of game events. The suggested price is the estimated value of one share based on these in-game circumstances as determined by the odds makers. For every game, there will be two suggested prices, one for a Team A wagering share and one for the Team B wagering share. Further to the example given above, the relationship between these two suggested prices may be based on the following equation:
Share Price of Team A+Share Price of Team B=$1.00.
The suggested price rises and falls based on what is happening in the game. As such, the suggested price is a suggested probability of the outcome of the game provided by the odds makers based on the progress of the game and certain game happenings.
These suggested prices would be displayed to the betting public in some form (for example, on a display in a sports book or on an individual bettor's computer screen if the wagering is taking place through a shared network such as the Internet or a local area network (LAN)) throughout the course of the game so that individuals bettors 102, 104 could make wagering decisions. While buying, selling, and trading of wagering shares may occur only during the stoppages of the game, the odds makers may continuously update the suggested price of the wagering shares and these suggested prices may be displayed to the betting public continuously throughout the game without regard to the stoppages.
However, the actual price (hereinafter the “real price”) the bettors can expect to pay when buying or expect to receive when selling for a Team A wagering share and a Team B wagering share is based on the suggested price as altered by market forces of supply and demand. A non-limiting example is described below. This example concerns only a bet on a game between Team A and Team B in which the spread is −10.5 points for Team A. For simplicity, this example will concentrate on a “Team A−10.5” contract.
As discussed above, immediately after the spread is published for this game, the share prices of “Team A−10.5” and “Team B+10.5” may both initially be $0.50. The exchange 110 accepts all bets and acts to maintain the desired ratio of “Team A−10.5” shares sold to “Team B+10.5” shares sold. In this example, it is assumed that, based on the market factors as discussed above, at the start of the game the share price of “Team A−10.5” is $0.52 and the share price of “Team B+10.5” is $0.48. However, the exchange 110 is now provided for facilitating the buying and selling betting contracts (consisting of “Team A−10.5” shares or “Team B+10.5” shares) between the bettors 102, 104 during the course of the game. Furthermore, the exchange 110 provides infinite liquidity for the market by ensuring that all wager shares that are not bought or sold by the bettors 102, 104 are bought or sold by the exchange 110 itself. The price that the exchange 110 pays for unsold wagering shares or that the exchange 110 sells the unsold wagering shares for will be discussed in further detail later.
As the game progresses, the odds makers begin to adjust the suggested price of the Team A shares and the Team B based on game events. The odds makers may adjust the price continually (including during the stoppages in play) or only during the stoppages in play, thus giving the bettors 102, 104 an indication of how much their shares are worth at any given point in time. However, the exchange 110 will facilitate trading of these shares only during the stoppages in the game. A stoppage in the game action may be defined as anytime that there is no game action currently taking place. These stops in the action are trading slots and provide the only time trading can occur. Outside of these trading slots, trading is halted and no trades are permitted.
For example, if the game is a football game, a stoppage may be defined as the time between plays, the time between quarters, the duration of halftime, and/or the time during a timeout, etc. If the game is a baseball game, a stoppage may be defined as the time between successive pitches, the time between successive batters, the time between half innings, and/or the time between full innings, etc. If the game is a basketball game, a stoppage may be defined as the time during a timeout, the time between quarters, and/or the duration of halftime, etc. The examples given herein are not intended to limit the games to be wagered on to any particular sport or to limit the stoppages to any particular periods of time, but may include any game or event in which one of two outcomes are possible and any stoppage thereof.
In this example, if a positive event for Team B occurs during the game, then the odds makers may adjust the suggested price of the “Team A−10.5” share from $0.52 per share to $0.40 per share after the completion of the positive event. Thereafter, if a predetermined stoppage of the game occurs, trades can take place through the exchange 110 during this stoppage based on this current suggested price of $0.40 per share. Trades can take place only during these stoppages in the action as the exchange 110 needs to structure or “bookend” trading in order to accurately, effectively, and quickly give the bettors 102, 104 information regarding the price at which they executed their trade. Bookending trading allows in-house buys and sells to be cleared instantaneously between brokers and allows excess sells or buys to be bought and sold by the exchange/market maker 110 within a reasonable period of time, such as during a stoppage in game play.
Referring to the current example, while the suggested price of a “Team A−10.5” share provided by the odds makers may drop to $0.40 per share after the completion of the positive event for Team B, the real price of a “Team A−10.5” share is dependent on the number of trades that can be settled in house (within a single broker) or between brokers 106, 108 and the number of trades that must be settled by the exchange 110. Therefore, the real price of a share is defined by the equation below:
Real Price=(% of Settled Bets*Suggested Price)+(% of Unsettled Bets*Market Maker Price).
So, in the example in which the suggested price of the “Team A−10.5” contract is $0.40 per share, if 75% of the trades of those shares at that rate can be settled for $0.40 per share and the remaining 25% must be settled by the exchange 110 at a reduced rate of $0.35 per share, for example, then the real price of the asset will be equal to:
Real Price=((0.75)*($0.40)+(0.25)*($0.35))=$0.3875 per share.
It is noted that the above example deals with a situation in which the exchange's reduced rate of $0.35 per share is a result of the fact that only 75% of the shares provided for sale by the bettors can be matched with sellers and, therefore, the rate the exchange 110 is willing to pay for the reaming 25% of shares that are unsold. However, in a situation in which there are more desired sellers of a wagering share than desired buyers of that same wagering share, the exchange 110 is willing to sell its own shares to the remaining unfulfilled buyers at a rate increased from the suggested price, thus resulting in the real price being higher than the suggested price. In such a circumstance, the exchange 110 may create additional shares in order to meet the demand that is unfulfilled by the bettors themselves.
Thus, in the example discussed above, the real price is the supply and demand affected rate at which bettors 102, 104 were able to sell “Team A−10.5” shares when they requested to sell at the suggested rate of $0.40 per share. The real price is determined by all trades made during a singular trading period (for example, a time in which the suggested price remains the same). It should be noted that all bettors may get (pay or receive) the suggested price for wagering shares during a singular trading period if an equal number of desired sells and desired buys can be matched up by the exchange 110. However, when the suggested price changes because of a subsequent game event, the probability of a specific team winning is again altered and a new suggested price is created. As such, the prior real price will be removed and a new real price will be generated based on the bettors' trading choices and the effects of supply and demand at the new suggested price. This process continues throughout the game until the exchange 110 closes and trading ends (for example, at the end of the game or when the exchange decides that the outcome of the game is no longer in doubt).
This system and method for the pre-game pricing and in-game pricing produce a revenue stream for the exchange 110. The exchange 110 earns revenue in several ways. When a bettor 102, 104 purchases an asset before the beginning of a game, the bettor 102, 104 may be required to pay a fixed fee per share (pre-bet fee). The pre-bet fee may be based on the following equation:
Number of Shares Purchased*Fixed Fee=Pre-Bet Fee.
Furthermore, in order to trade a bet, there may be a fixed fee associated with every trade made that is charged to the bettors 102, 104. Also, in order to register as a broker 106, 108 on the exchange 110 and to broker trades, the exchange 110 may charge the brokers 106, 108 a fixed monthly fee. Moreover, because most prices will be drawn out past the 100^thdecimal place, the exchange 110 may round every trade down to the nearest penny. For example, if a bettor 102, 104 sells 100 shares at $0.396875, the bettor 102, 104 would receive $39.68 and the exchange would collect $0.0075.
Perhaps most importantly, when the exchange 110 buys or sells a share of a bet, it does so at a rate lower (as a buyer) or higher (as a seller) than the suggested rate. For example, when the probability of a team winning is 40% and, thus, the suggested price is $0.40, the exchange 110 may purchase each share for an adjustable reduced rate. The price at which the exchange 110 buys or sells a share of a bet is based on one of the following equations:
Share Price−Market Maker Fee=Offered Price (when the exchange is buying); or
Share Price+Market Maker Fee=Offered Price (when the exchange is selling).
The market maker fee can be determined in a number of different ways. For example, the market maker may offer a reduced fixed price to the bettor when buying shares or an increased fixed price to the bettor when selling shares. This fixed fee may fluctuate depending on total volume wagered on an individual game. Alternatively, the market maker may offer a reduced price to the bettor when buying shares or an increased price to the bettor when selling shares based on a fixed percentage of the suggested price. For example, if the fixed fee was 5% of the suggested price, then the market maker would require that the bettor pay a 5% price increase when buying shares and takes a 5% price reduction when selling shares. As an additional alternative, the market maker may offer a reduced price to the bettor when buying shares or an increased price to the bettor when selling shares based on a variable percentage of the suggested price. For example, the percentage fee may vary between 5% and 20% depending on the suggested price. When the suggested price is low, the percentage fee would be larger (for example, closer to 20%) and when the suggested price is high, the percentage fee would be smaller (for example, closer to 5%).
The exchange 110 may also make a profit by charging a fixed monthly fee for the right to publish pricing information. According to these examples discussed above, the exchange's daily revenue stream per game may be represented by the following equation:
(PBF+(TF*T)+(((MBF*B)/30)/(G/D))+((MMV*S)−(WS*1)+(LS*ABP))+(RP)+(((IF)/30)/G),
where PBF=Pre-Bet Fee, TF=Trading Fee, T=Number of Trades, MBF=Monthly Brokerage Fee, B=Number of Brokers, G=Games, D=Day, MMV=Market Maker Vig or Fee, S=Number of Shares Cleared by the Market Maker, WS=Number of Shares Clearing at $1.00 or Winning Shares, LS=Number of Shares Clearing at $1.00 or Losing Shares, ABP=Average Bought Price, RP=Revenue from the Rounded Pennies, and IF=Monthly Information Distribution Fee.
Referring to FIG. 2, a block diagram is provided for illustrating the method for purchasing and trading wagering shares representing one of two possible outcomes of an event before and during the event discussed above. In operation 201, a price of the wagering shares can be adjusted such that a ratio of a number of wagering shares representing a first outcome of the event that are sold to a number of wagering shares representing a second outcome of the event that are sold is within a predetermined range. This adjustment takes place prior to a start of the event and the range can be predetermined according to the desires of the exchange.
In operation 202, the price of the wagering shares representing the first outcome of the event and the price of the wagering shares representing the second outcome of the event are adjusted during each of one or more stoppages of the event according to a progression of the event and, secondarily, according to market supply and demand for the wagering shares. Again, the exchange facilitates purchasing, by bettors, of the wagering shares prior to the start of the event and facilitates trading, between the bettors, of the wagering shares prior to the start of the event and during each of the stoppages of the event, as discussed above.
There are several ways in which the brokerage process can operate within the above-described wagering exchange system 100, all of which can be easily implemented by the exchange 110. As a first non-limiting example, wagers can go straight to an inter broker market. In this scenario, the broker's only purpose in the exchange process is to submit all wager requests made by their clients. Under this system, all wager requests made by market participants will be matched up with opposite wager requests from fellow participants (for example, a buy order from one bettor is matched with a sell order from another). Those wager requests that cannot be matched up will go straight to the exchange to be settled at a reduced price set by the exchange. All market participants will receive the same price for their wager request, which will be the average between the wagers settled by fellow market participants and those that were settled by the exchange.
For example, if a market participant wishes to sell 100 shares of Team A at a suggested price of $0.60 per share and if 90% of requests to sell Team A can be matched with people wishing to buy Team A at the given suggested price of $0.60, then only 10% of requests to sell Team A will have to be settled by the exchange at a reduced price $0.55, for example. Under this scenario, the individual who requested to sell the 100 shares will receive 90*$0.60+10*$0.55=$59.50 and every market participant who requested to sell Team A at that suggested price will receive $0.595 per share.

As another non-limiting example, wagers can be settled within individual firms before the inter broker market. Under this scenario, wagers will first be settled within individual brokers or brokerage firms. If someone within a bettor's own brokerage firm can settle their wager request, then the request will be settled. If not, the request will then go to the inter broker market, where an attempt will be made to settle the request with another market participant whose request could also not be settled within their brokerage firm. If the request can still not be settled, then the market maker/exchange will settle the request at a reduced price. The price that the market participant receives will depend on what percentage of wager requests within their individual firm had to be settled by the market maker. Market participants with money in different brokerage firms are likely to receive different prices under this scenario.
For example, with the suggested price from the example above of $0.60 per share of Team A and two separate brokerage firms, X and Y, it is assumed that two market participants made requests to sell 100 shares of Team A at the suggested price of $0.60. If 90% of wager requests to sell Team A within brokerage firm X were settled within that firm, 70% of wager requests to sell Team A within brokerage firm Y were settled within that firm, 50% of the share requests to sell Team A that reach the inter broker market can be settled, and the remaining 50% of the share requests to sell Team A have to be settled by the market maker, then the prices received by investors within firms X and Y will be as follows:
Firm X: 90 (shares settled in house)*$0.60+5 (shares settled in inter broker market)*$0.60+5 (shares settled by market maker)*$0.55=$59.75, and all market participants within firm X who made requests to sell Team A will receive $0.5975 per share; and
Firm Y: 70 (shares settled in house)*$0.60+15 (shares settled in inter broker market)*$0.60+15 (shares settled by market maker)*$0.55=$59.25, and all market participants within firm Y who made requests to sell Team A will receive $0.5925 per share.

The embodiments described herein can be implemented in computing hardware (computing apparatus) and/or software, such as (in a non-limiting example) any computer that can store, retrieve, process and/or output data and/or communicate with other computers. The results produced can be displayed on a display of the computing hardware. A program/software implementing the embodiments may be recorded on computer-readable media comprising computer-readable recording media. The program/software implementing the embodiments may also be transmitted over transmission communication media. Examples of the computer-readable recording media include a magnetic recording apparatus, an optical disk, a magneto-optical disk, and/or a semiconductor memory (for example, RAM, ROM, etc.). Examples of the magnetic recording apparatus include a hard disk device (HDD), a flexible disk (FD), and a magnetic tape (MT). Examples of the optical disk include a DVD (Digital Versatile Disc), a DVD-RAM, a CD-ROM (Compact Disc—Read Only Memory), and a CD-R (Recordable)/RW. An example of communication media includes a carrier-wave signal.
Further, according to an aspect of the embodiments, any combinations of the described features, functions and/or operations can be provided.
The many features and advantages of the embodiments are apparent from the detailed specification and, thus, it is intended by the appended claims to cover all such features and advantages of the embodiments that fall within the true spirit and scope thereof. Further, since numerous modifications and changes will readily occur to those skilled in the art, it is not desired to limit the inventive embodiments to the exact construction and operation illustrated and described, and accordingly all suitable modifications and equivalents may be resorted to, falling within the scope thereof.

Claims

1. A method for purchasing and trading wagering shares representing one of two possible outcomes of an event before and during the event, the method comprising:

prior to a start of the event, adjusting a price of the wagering shares such that a ratio of a number of wagering shares representing a first outcome of the event that are sold to a number of wagering shares representing a second outcome of the event that are sold is within a predetermined range;

during each of one or more stoppages of the event, adjusting the price of the wagering shares representing the first outcome of the event and the price of the wagering shares representing the second outcome of the event according to a progression of the event and to market supply and demand for the wagering shares; and

facilitating purchasing, by bettors, of the wagering shares prior to the start of the event and facilitating trading, between the bettors, of the wagering shares prior to the start of the event and during each of the stoppages of the event.

2. A method according to claim 1, wherein the adjusting prior to the start of the event, the adjusting during each of the one or more stoppages of the event, the facilitating of purchasing, and the facilitating of trading are carried out by an exchange.

3. A method according to claim 2, wherein the exchange provides infinite liquidity by purchasing all wagering shares that are unsold in trading between the bettors during each of the stoppages of the event at a price lower than the adjusted price.

4. A method according to claim 3, wherein the exchange provides infinite liquidity by selling additional wagering shares to bettors that are not fulfilled in trading between the bettors during each of the stoppages of the event at a price higher than the adjusted price.

5. A method according to claim 4, wherein the amount that a wagering share is raised and/or lowered by the exchange is determined by a market maker based on a suggested price of the wagering share.

6. A method according to claim 4, wherein the amount that a wagering share is raised and/or lowered by the exchange is variable according to the currently adjusted price of the wagering share.

7. A exchange that facilitates that trading of wagering shares representing one of two possible outcomes of an event before and during the event, the exchange comprising:

means for adjusting a price of the wagering shares such that a ratio of a number of wagering shares representing a first outcome of the event that are sold to a number of wagering shares representing a second outcome of the event that are sold is within a predetermined range prior to a start of the event;

means for adjusting the price of the wagering shares representing the first outcome of the event and the price of the wagering shares representing the second outcome of the event according to a progression of the event and to market supply and demand for the wagering shares during each of one or more stoppages of the event; and

means for facilitating purchasing of the wagering shares prior to the start of the event and for facilitating trading of the wagering shares prior to the start of the event and during each of the stoppages of the event.