If you are a serious sports fan, or a serious gambler or aspect of big financial matters, you may have heard your friends or co-workers with the term "Calcutta auction" especially when the "March Madness" time is near (first I met the analyst over the years in I-banking). What the hell are you talking about asking me? Simply, a Calcutta auction is any auction that takes place in Indian Calcutta. Joking! (well, somehow because it's technically correct). In the world of sports betting, Calcutta's auctions usually point to a gambling collection where the entrants buy "teams" (players, horses, etc.) in "auction" format (I do not like gambling for real money, imaginary funds or "points"). The easiest way to get this description and understanding is to look at the most common example today: the men's basketball championship. Here is a very brief overview:
1. Selection of auction time and location
2. Since there are 64 teams (I know, I know … 65 in the game), 64 teams will be in the auction
3. Teams get in random order
4. Participants are bidding for the currently participating team on the auction block. In order to have an entry "own" for a particular team, the highest bidder must be at the end of the bidding round
5. Unbound for the number of teams that the bidders can purchase
6. In the tournament, the team's winnings determine the percentage of the owner (early-round winnings reach a much smaller percentage of the total pot than the later win).
This is basically the semantics of the auction. Sounds simple, right? Well, in theory, Calcutta's auctions are very complex and require a lot of valuation work (so it's so popular with investment bankers, hedge funds analysts, P / E analysts, lawyers and anyone else's evaluation work). If a Calcutta style auction seems to be interesting to you, read on
Detailed Review of the Calcutta Auctions
Now that you know the fundamentals of the Calcutta auction, it gets a bit deeper. This example is again presented by a men's basketball basketball (Calcutta) (note that this information is equally applicable to any other sport … professional football is also common in Calcutta format).
So the word is that a men's basketball basketball is formed in his office / school / friends' association. If you are interested in participating, the first thing to find out is how big the pool size is (or if you are organizing, how big you want to be). Estimating the size of the pool is a critical element to be successful in calcutta. You do not want to move most of the capital to a team to find out that this team represents 50% of all banks. He also wants to determine what prizes can be paid in a given round.
For example, if your own team wins the first round, it's only 0.5% of the total pot. If they continue the championship, then the final win is worth 10% of the pot. CRITICAL IS IMPORTANT to understand that the total amount spent on teams is not the exact representation of risk capital. This is because the only way to lose 100% of your capital if NOT your team does not win a single game that, when you do your homework, is an incredibly unlikely scenario. If you are willing to lose a certain amount, you are willing to pay more than your team.
The next and most important step is to conduct research on the teams you are bidding for. People who are approaching this step change wildly. Some people rely on a "feeling". Others are in the loyalty of the team – I went to school X, so I have to own either the team's mascot and the roots of my team. The last group of people, and usually the most successful, sophisticated statistical analysis with complex excel models. The last group is able to approach the auction as lively as it tries to give "fair" values to the teams. I used this approach and it was very successful. Now that you have determined what teams you want to own, your auction time.
Auction is usually done personally, at a specific time and place. The rules of the auction must be discussed in advance (for example, how you can indicate that you want to bid, how long does the last bidding on your bidding, etc.) to avoid conflicts. All teams will be auctioned as long as they sell everything (13-16 seeds in some auctions are packed as a single team). Suppose you win the teams you want. What now?
After the auction is over and their teams are over, most of the hard work is over, but the fun is just starting. This is what you feel like you are the owner of a professional sports team! You will fast for teams who have the harder themselves than the school you are doing (or are currently attending, depending on the case). It's an explosion! You will find yourself updating your cumulative prize and trying to figure out that you have to break more victories …
Once you've been involved, you will undoubtedly hang them
Source by SBOBET