Betting Exchanges (like Betfair, Matchbook, or Smarkets) allow you to be the bookmaker. You can bet “Back” (for a win) and “Lay” (against a win).
Traders use this to lock in profit when odds move. This calculator tells you exactly how much to Lay to create a “Green Book” (guaranteed profit on all outcomes).
[gc_back_lay]
How to Trade Odds
The goal is to “Back High” and “Lay Low.”
- Back Bet: You bet $100 on a horse at odds of 4.00.
- Market Move: The horse becomes a favorite; the Lay odds drop to 3.00.
- Calculation: Enter these numbers (plus your exchange commission, usually 2-5%).
- Result: The calculator tells you to Lay roughly $133 at 3.00.
- If the horse wins: You profit from the Back, pay out the Lay. Net Profit ~ $33.
- If the horse loses: You lose the Back, keep the Lay stake. Net Profit ~ $33.
Frequently Asked Questions (FAQ)
What is “Liability”?
When you Lay a bet, you are acting as the bookie. Your “Liability” is the amount you must pay out if the selection wins. Always ensure you have enough funds in your exchange account to cover the liability shown by the calculator.