Let’s say that Borussia Dortmund are 4/1 to win the Bundesliga title on a traditional bookmaker website like PaddyPower. A way for you to potentially cash in on that event not happening is by offering better odds than 4/1 on an exchange, in order to entice bets from folks that think that Dortmund will win the league.
You then create a lay bet of 5/1 with a £100 stake. The stake in this instance is the amount of money you stand to win if the event – in this case, anybody but Borussia Dortmund winning the league – happens. Where the odds of 5/1 come into play is in the form of your liability, which is one of the most important things to keep in mind when placing lay bets.
For every £100 you stake when offering odds of 5/1, you need to be prepared to lose £500. This is known as your liability, and is dependent on the odds you and other punters have offered, as well as your unit stake, which varies from bettor to bettor. Using the example we’ve talked about, if you wanted to make £10 of profit, you would have to put up £50 of liability. The only issue with a bet like this - that runs over the course of a football league season - is you have liability tied up in a betting exchange for a long period of time, which can be a bit frustrating.
But congratulations, you are now a fully-fledged bookmaker.
Scary, isn’t it? At first, it certainly is daunting when you’re seeing large amounts deducted from your betting exchange balance in the form of liquidity, but there is a great opportunity for punters to be one step ahead of the game and make tidy profits.
By the way if you are still struggle to understand how to calculate your liability, do no worry we have you cover. Simply use our automated lay betting calculator to do the math for you.