Backing & Laying Simultaneously

Developing on our previous tutorials we can now begin to show how matched betting works. Matched betting works by removing all of the risk associated with traditional betting. By backing and laying the same outcome simultaneously all outcomes in an event can be covered meaning your own money is never put at risk. And when this is done in combination with bookmakers free bets inevitably you can profit from them.

In the previous tutorials we identified that there are only two possible outcomes when Backing (i.e betting for)

Placing a Back bet

(1) EITHER WE WIN and THE BOOKIE LOSES

(2) OR THE BOOKIE WINS and WE LOSE

Placing a Lay Bet

In the previous tutorials we identified that there are only two possible outcomes when Laying (i.e betting against)

(1) EITHER WE WIN and the BETTING EXCHANGE LOSES

(2) OR THE BETTING EXCHANGE WINS and WE LOSE

Matched betting

When you place a matched bet, i.e Backing and Laying the same selection simultaneously, there is also only two possibilities

(1) EITHER WE WIN AT THE BOOKIE and LOSE AT THE BETTING EXCHANGE

OR ...

(2) OR WE WIN AT THE BETTING EXCHANGE and LOSE AT THE BOOKIE

Let’s take a football match for example, if we backed (bet for) and layed (bet against) Arsenal to win in a match against Chelsea…

Arsenal vs. Chelsea

If both bets have been placed correctly, both the back and the lay, you will now have two opposing bets on the same outcome (Arsenal), one bet which will win and the other bet which will lose, you simply can’t lose at both or win at both, you are guaranteed to get your money back regardless of the final outcome. To explain this more clearly we have created another visual guide for you to view below

Risk / Reward Balance

To explain the matched betting concept visually, we have created two risk / reward models and positioned them next to each other. The left model reflects the bookmaker, the right model reflects the betting exchange and you are positioned in the middle of the two. The risk for each party has been calculated and the correct amounts have been placed on the appropriate supports. Depending on the final result, both balances will either tip to the left or to the right in synchronization with one another.

BACKING & LAYING THE SAME OUTCOME
use arrows to navigate

BACKING & LAYING THE SAME OUTCOME

When backing and laying the same outcome, you are betting both for
and against, therefore whatever happens you will win on one side and
lose on the other...

(1) YOU WIN AT THE BOOKMAKER and LOSE AT THE EXCHANGE

(2) YOU WIN AT THE EXCHANGE and LOSE AT
THE BOOKMAKER

Here is how the risk is distributed...

Bookmakers' risk goes here

Your risk goes here

Your risk goes here

Exchanges' risk goes here

YOU

EXCHANGE

BOOKMAKER

You stake £10 and back an outcome at back odds of 4.00
(decimal). You lay stake £10 on the same outcome with lay odds
of 4.00 (decimal).

YOU

EXCHANGE

BOOKMAKER

£30
£10
£30
£10

(1) YOU WIN AT THE BOOKMAKER and LOSE AT THE EXCHANGE

YOU

EXCHANGE

BOOKMAKER

£30
£10
£30
£1.50
£28.50
£10
Profit/loss: £30 - £1.50 - £28.50 = £0 (BREAK-EVEN)
WIN
LOSE

(2) YOU WIN AT THE EXCHANGE and LOSE AT THE BOOKMAKER

YOU

EXCHANGE

BOOKMAKER

£30
£10
£30
£0.50
£9.50
£10
Profit/loss: £9.50 - £10 = -£0.50
WIN
LOSE

Break-even on one outcome, lose £0.50 on
the other! What?

Don't worry, to make it simpler to understand we did not
account for the exchange commission in our lay stake. For us to
calculate the correct lay stake, we need to use a matched betting
calculator (positioned on the right menu).

We will discuss this further in the next article.

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