There are different types of wagering nowadays and each and every one of them has its specifics that bettors should be familiar with. One of the most popular types of betting today is matched betting which allows punters to make quite a significant profit. However, like any other kind of betting, it requires at least basic knowledge of the terminology of bettors. So, they should know what lay and back bets mean but also what liability is which is an integral part of wagering on betting exchanges.
In this article, you will discover what betting liability precisely is and how to calculate for every matched bet that you will place using a matched betting calculator. What is more, if you are passionate about wagering on tennis, then you will definitely benefit from free tennis betting tips. You can also follow the link to Takebet, they cover all bookmaker offers in various countries and do reviews on best betting sites from professionals with profound experience.
How does liability work in matched betting?
When it comes to the definition of liability, it is simply the amount of money that you will need to pay in case your lay bet loses. So, liability is applicable only in lay betting because, in back betting, you will only lose the size of your stake regardless of the odds. The most important thing to remember is that liability is the number of funds that you should have on a betting exchange account in order to be able to place a lay bet.
When you place a lay bet, the betting exchange deducts the liability from your account and holds it until the game is finished. If you win, then you will acquire your liability back and earn a profit. If you lose, your liability will be transferred to other punters.
Here are details on how to calculate liability in back sports betting. Let’s have an example of a match between Manchester United vs Liverpool. The odds for the event are 2.0. If you bet 10 USD on Manchester United winning and it will do that, you will obtain 20 USD (10 x 2.0 = 20). However, if it happens that your bet isn’t correct, then you will lose 10 USD which means that the liability for your bet is 10 USD and the sportsbook gets this amount.
However, in lay betting, it is a little bit more complicated. First of all, you should remember that if you place bets on the Betfair exchange, then you take the role of the bookmaker and you will have to pay out the liability to the bettor if he wins. Secondly, the odds are the important factor that will influence not only your potential winnings but also your liability as you will see later on in the example provided. Also, you should make sure that the odds are decimal and not fractional because it will be easier to calculate your earnings.
How to calculate bet liability?
Keep in mind that liability depends on the size of betting odds for the particular event that you are interested in. So, in order to calculate it manually, you should multiply the lay stake by the lay odds minus 1. For example, you want to make a lay punt on Liverpool at the odds of 1.50. Your bet stake amount is 10 USD. Therefore, the liability would be 10 USD (1.50 – 1) = 5 USD. It means that you need to have an extra 5 USD on an exchange account to make such a bet.
You may use a betting calculator online which will help you to calculate liability automatically. You will need to fill out such fields as lay stake amount, odds and commission. So, if you bet 20 USD at the lay odds of 2.5 and with a commission of 5%, then you will get such results:
- Liability: £30.00
- Return: £20.00
- Commission Paid: £1.00
- Profit After Commission: £19.00.
How to lower the risk of a bet?
As with any other type of betting, you should have a betting strategy that you should stick to. It will help you to plan your spending, lower the risk of losing and maximize your winnings. What is more, matched bettors should keep in mind that the greater odds, the higher the liability. So, if you want to lower the risk of a bet, you should not choose extremely huge odds.
Additionally, you should practice match betting and understand how liability works. Only then you may move on to making lay bets. If there is such a possibility, try to make free bets first in order to test your skills.