There are two sides to a coin, a story and what else a bet, Back and Lay. These days both the options are readily available online through many sports exchange sites such as Crickex. However, your traditional bookmakers don’t offer laying options. Without any further ado, let’s get into the world of matched betting.
What is Betting exchange?
The world of betting experienced a sudden radical change with the introduction of betting exchange offers. Now many online sports betting sites can offer the role of a traditional bookmaker to any players.
In general, betting exchange provides a marketplace for punters with options to either back or lay the bet. In a regular sportsbook, you get an option to back your bet. That means you are betting against the house. And you may have heard, “House always wins.” But with exchange betting, you can take the role of bookmaker and bet against another player.
During this trade, the site collects revenue by taking a small commission off the wins. Furthermore, the odds provided in betting exchange are far more appealing than your ordinary sportsbooks.
What is Back and Lay bet?
Back Bet: This is the standard bet that is also used in the sportsbook, where you can wager on a particular outcome—backing a bet means placing a stake on the outcome to happen.
Lay Bet: This bet refers to betting against an outcome. In this scenario, you bet on a specific outcome to not happen. In order to confirm the bet, an opponent needs to back your wager. Hence, it gives you the chance to become a bookie and collect win accordingly.
For instance, you wish to bet on a match between Leicester City and Manchester United. You see a lower likelihood of Leicester City winning the match. In this case, you wager a lay bet on Leicester City.
How does Matched Betting work?
Match betting is possible mainly or at least even more accessible due to the lay betting. This technique highly relies on a bettor placing bets on two different outcomes. One half will place a lay bet while the other half backs the bet. The mechanism of match betting is similar to arbing or hedging.
Nonetheless, knowing how much to lay or back a specific wager can be tricky. But with a simple equation and few calculations, you can wrap your head around it quickly. To know more, kindly check our other articles related to this topic.
What is Profit, Liability, and Liquidity?
Before proceeding with your lay bet, you need to understand these three terms, Profit, liability, and liquidity.
Profit: This is simple as it gets. It’s the total amount you win.
For example, you may place $10 on 5 –1 odd. You make a profit of $50.
Liability: Although we don’t root for losing, it is inevitable in any sports. Liability refers to the amount you could lose.
While in lay betting, the formula is reversed. Now you will have to risk $50 to make a profit of $10. This is because, in betting exchanges, users wager between each other rather than bookmakers or bookie.
Liquidity: This term points to the money available for placing a wager in the back and laying the market at corresponding odds. Usually, popular sports display higher liquidity in contrast to minority sports. Take Premier League football matches, for example. They offer enough liquidity in the market price compared to a volleyball market. Moreover, it is crucial for a punter to check if the market prices offer enough liquidity to wager.
Does Lay Betting guarantee profit?
Like, hedging or arbing, lay betting or laying can also help reduce the risk of the wager you have a place. And even guarantees profit in some cases. Let look at a feasible circumstance on laying your backed bet or vice-versa.
You wager a back bet of $100 on a particular a football match to be draw at the odds of 3.8.
Your potential profit: $280
Half time has passed nothing significant has happen till now. The odds of draw are shortened to 3.0. Let’s say you choose to place a lay bet at this price:
Your potential profit : $126.67
The liability: $253.34
Let’s say your initial bet wins, the match ends in draw.
Your total win: $280
But your lay bet will go to loss that is $253.34
Your potential profit: $26.67
In other scenario, your initial bet losses, the match doesn’t end in draw.
Your total win: $126.67
But your back bet will go to loss that is $100
Your potential profit: $26.67
Due to nature of security in the wager you place, matched betting is one of the simplest ways of making money online.