It is quite important to do some math to determine the correct lay betting while there is a lot of risk involved. Most exchanges really protect your potential losses from your account balance, but even then, you can still lose a lot of money. Hence the importance of figuring out how much you could stand to win in a lay bet before you even place your bet.
In this guide, we will describe the three basic calculations, that work for fixing the profit in any type of bet. If you have read our previous articles on lay betting, you should by now understand what it entails. Let’s dive into how to manually calculate lay bet winnings, starting with the most important aspect: your potential liability.
Calculate Your Liability
Of all the factors prevalent in lay betting, liability is probably one of the most fundamental ideas to grasp. In a conventional betting terminal at a bookmaker, if one has backed a bet and the bet is void, then one gets minus only the stake. However, the lay bet champions work in a different way; you are the bookmaker here. But when you are on the receiving end, the worst thing that can happen is for you to have to pay several times more as your stake. This total payout is what is referred to as your liability. Here’s how to calculate it with an example:
- Suppose you lay a horse for £5.
- A punter backs your bet with £20.
- If any other horse wins, you’ll collect the other punter’s stake of £20.
- If your laid horse wins, you must pay out £80.
Instead of paying out the amount staked at the beginning, you do not pay back to the one who supported the bet. Therefore, the equation for calculating liability is as follows:
Liability = (Backer’s Odds x Backer’s Stake) – Backer’s Original Stake
Calculating Your Lay Bet Winnings
Now that you know your potential liability, you can understand your possible loss, and you can determine what you can gain with a lay bet. Use this straightforward formula:
Profit = Lay Stake x (1 – commission) – Back Stake
For instance, if you lay a £5 stake at odds of 2.00 and face a 2% commission (which amounts to 10p), your total profit would be:
Profit = £5 x (1 – 0.02) – £5 = £4.90.
Calculating Your Matched Bet
Known as matched betting, many punters who place lay bets at an exchange will also back a bet at a sportsbook. Ignoring free stakes and solely focusing on qualifying bets, here’s how it works:
There are four formulas you need to know for qualifying matched bets:
- Calculating the ideal stake for even profit, regardless of the result: Lay Stake = (Back Odds x Back Stake) / Lay Odds – commission.
- Profit if the back bet wins: Profit = (Back Stake x (Back Bet Odds – 1)) – (Lay Stake x (Lay Bet Odds – 1)).
- Profit if the lay bet wins: Profit = Lay Stake x (1 – commission) – Back Stake.
- Final profit for a qualifying matched bet: Final Profit = Lay Stake x (1 – commission) – Back Stake.
Use Lay Bet Calculators
Still, using these formulas, placing lay bets, and being involved in matched betting can be rather challenging if certain things are not looked through. The good news is that some betting exchanges will offer to lay bet calculators. There are calculators of rather simple and complicated forms, while applying such tools, you can calculate your liability, stake, and potential results for the bookmaker and the exchange.
If you are just starting your lay betting, you should probably need a laybet winnings calculator and a liability calculator to understand the situation. You can also identify various means of helping you to get the best odds for backing and laying and thus increase your chances of making profits.
Top Tips for Maximising Lay Bet Winnings
We have given the Lay Bet strategy a full and detailed explanation, and now let us just give you the best tips on how to maximize your winnings.
- Check out websites that provide tips on Lay of the day in different sports. This can come in handy in sparing you some time you would have used to calculate these figures. However, understand that there are likely to be many other players with that thought in mind, therefore, do it fast if you wish to lure a backer into your lay.
- Utilize an exchange that does not let your losses exceed your account value. In this regard, this frees you from the pressures of estimating your liability—although it is a formula, do think about potential returns.
- Match it with a sportsbook in addition to the notion of laying bets at an exchange. This can help to lock in profits, but at the same time it needs additional reading and, therefore, some level of understanding.
- I think horse racing is one of the bets that one can lay for because only one horse triumphs. Your chances are good if you find someone willing to take your odds.
- Don’t jump straight into lay betting without taking the time to learn about liability, liquidity, and profitability. The more familiar you are with these ideas, the smaller the chances of your failure whatsoever, especially when placing lay bets.
By following these guidelines, you’ll be better equipped to navigate the world of lay betting and maximize your potential winnings.
