I have a question about "book to book" transfers...regarding which book comes out ahead, and who is taking on the risk. I think my question will best be expressed/answered through an example:
Tom deposits 1,000 in
pinnacle. He runs this amount up to 10,000. Now he could takes some time and withdrawal all of this from Pinnacle, and in the end Pinnacle would end up losing 9,000 on Tom.
Now say once Tom has run his Pinnacle account up to 10,000...he decides to transfer half of that to Bookmaker. So he has 5,000 at both Pinnacle and Bookmaker. (Assume he works through the rollover requirement at Bookmaker and is still left with 5,000). Now he withdrawals 5,000 from Pinnacle and 5,000 from Bookmaker. In the end...Pinnacle lost 4,000 on Tom, and Bookmaker lost 5,000.
My question is based on the Pinnacle to Bookmaker exchange...when Tom transferred 5,000 from Pinnacle to Bookmaker...did Bookmaker give Pinnacle 5,000? Do that do a dollar-for-dollar exchange on these book to book transfers?
Background for this question, is that I know someone who has a large balance at one of the top 5 books...and he is looking to limit his exposure by transferring a chunk of it to another reputable book...will the book with the current large balance see this as a good thing, assuming that the newer book will give them the funds for the transfer?