Sporttrade currently charges a Commission on both (a) Trades where a Patron is exiting a Position on an Outcome for a profit and (b) Outcome Settlements where a Patron’s Position Settles for a profit.
Currently, Sporttrade plans to charge a 2% commission on the above-described profits. This is subject to change.
When a Patron incurs a Commission by exiting a Position on an Outcome that has not yet settled, Sporttrade withholds the Commission amount, but doesn’t actually move cash from the Patrons Account. Only when an Outcome settles does Sporttrade move cash from the Patrons Account for the amount of Commissions incurred. (This is because if the Outcome is Voided, all Commissions Incurred will be un-restricted from the Patron’s withheld balance.)
When a Patron incurs a Commission on an Outcome that has not yet settled at the end of the Gaming Day, the amount of Commission incurred but not yet moved from her account can be seen on both the “Patron Liability” and “Patron Account Summary” Reports as “Restricted Balance”.
Example of Commission Calculations:
You purchase 5 shares of the Heat to win @ $60. You then decide to sell all 5 of those shares @ $75 for a gross profit of $75 (5 x $15 profit per share). The Sporttrade commission rate is 2%. Sporttrade collects $1.50 in commission (2% * $75) for a net profit of $73.50.
You purchase 10 shares of Phillies to win @ $45 and the outcome settles at $100. Your gross profit is $550. The Sporttrade commission rate is 2%. Sporttrade collects $11 in commission (2% * $550) for a net profit of $539.
*Exchange wagering is not yet available in Colorado